A unique path to credit wellness

IN Partnership with

Introducing MCAN Home’s SCORE program: a first-of-its-kind initiative that provides support for credit optimization, rehabilitation, and education

CANADIANS ARE feeling ever-so-slightly optimistic about their current debt situation, and that represents a significant opportunity for mortgage brokers to help their clients understand the many benefits of an improved credit profile. According to the most recent MNP Consumer Debt Index report, fewer Canadian households are worried about their debt levels despite the impact of rising costs and debt levels. The new debt consolidation program to support credit optimization, rehabilitation, and education (SCORE) from MCAN Home offers brokers another tool to help clients achieve healthy credit and peace of mind. The first-of-its-kind program is designed to assist Canadians in consolidating debt and improving credit scores. Delivered exclusively through mortgage brokers, SCORE is not just a debt consolidation tool but a comprehensive financial wellness initiative.

Redefining homeownership for Canadians is MCAN’s mission to provide sustainable growth and returns to all its stakeholders through its relationship-driven lending and investing activities and quality work delivered through an expert team focusing on excellent client service. Since its beginning in 1992, the company’s goal has been to be the preferred mortgage lender and investor in its chosen markets in Canada. Our foundational experience and knowledge of Canadian real estate mean we build mortgage solutions that reflect the needs of real Canadians, solutions inspired by real life and delivered through an exclusive network of accredited mortgage brokers. With people-first financing and investing solutions that help Canadians achieve homeownership and build wealth through real estate, we are reframing our investment in community and home. Every Story Begins at Home.

“The SCORE program empowers Canadians to achieve credit wellness, reduce stress, and build a solid foundation for long-term financial success”

Gleb Ioussoufovitch, MCAN Home

“The SCORE program empowers Canadians to achieve credit wellness, reduce stress, and build a solid foundation for long-term financial success,” says Gleb Ioussoufovitch, senior director, underwriting, MCAN Home.

Canadian consumer debt has reached historical highs due to rising costs and a middle-age crunch, which is placing pressure on groups like Gen X and millennials to build wealth for tomorrow while also paying for today. The financial strain caused by debt burden is significant, leading to increased stress, mental health issues, and diminished financial stability. SCORE aims to tackle this crisis head-on by offering a strategic solution for debt consolidation and credit improvement. Canadians in their 40s carry the most debt – almost $650,000 on average – including mortgages, according to a 2023 survey from The Globe and Mail.

MCAN SCORE can help these homeowners consolidate that debt through a mortgage refinance and earn up to $1,000 toward their principal.

SCORE incentivizes clients to enhance and maintain their credit scores post-debt consolidation. The program provides educational resources on financial literacy, emphasizing responsible credit use and effective debt management. As participants improve their credit scores, they receive payments toward their mortgage principal, creating a tangible reward for their financial discipline. Since launching last month, SCORE has helped more than 50 clients with an average credit score hovering around 650 and an average age of 48. Debt education is a cornerstone of the SCORE program. Understanding how to manage and repay debt is crucial for long-term financial health. Through SCORE, clients gain insights into budgeting, saving, and the impacts of credit behaviour on their financial futures. This education empowers them to make informed decisions, avoid common pitfalls, and establish sustainable financial practices.

“SCORE is a great example of something designed through partnership with our broker network,” says Ryan White, regional sales director, MCAN Home, adding that the program is a unique and innovative approach to addressing the challenges of consumer debt and credit health in Canada. By offering debt consolidation through mortgage brokers and incentivizing credit score improvement, SCORE provides a comprehensive solution that helps both individuals and the broader economy. Through education and financial incentives, SCORE empowers Canadians to achieve credit wellness, reduce stress, and build a solid foundation for long-term financial success – a worthy endeavour, White notes. “The idea sparked at a summit and developed through discussion on what might help debt-stressed clients move toward a brighter future. That’s the driving force at MCAN.”

Addressing the Canadian debt reality

Published July 22, 2024

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“SCORE is a great example of something designed through partnership with our broker network… The idea sparked at a summit and developed through discussion on what might help debt-stressed clients move toward a brighter future”

Ryan White, MCAN Home

How SCORE works

Credit wellness brings numerous benefits. Improved credit scores open doors to better interest rates on loans and mortgages, resulting in significant cost savings over time. Higher credit scores also enhance financial security, providing greater access to credit when needed. Beyond the economic aspects, a good credit score reduces stress and contributes to overall well-being by fostering a sense of control over one’s financial future. MCAN SCORE promotes healthy financial habits by rewarding clients for their progress. The incentive of receiving payments toward their mortgage principal serves as a powerful motivator to maintain good credit practices. This positive reinforcement helps participants stay committed to their financial goals, leading to a more stable and prosperous future.

The program also offers an added benefit for brokers in the form of quadruple MQ Points on every SCORE deal. MQ Points are rewarded through the MCAN ICON Partner Program on Discover Alt deals at the Innovator tier. So, on SCORE deals, eligible brokers will earn a total of 20 additional bps.

The added benefit of partner perks

The HomeTeam recently approved a refinance for a client in Barrie, Ontario, seeking to consolidate more than $125,000 in debt. Through the SCORE program, we helped save this client nearly $3,000 per month and will contribute $1,000 when they maintain an improved credit score for 12 months! This client is fully employed with a credit score of 657 due to the accumulation of debt overtime. Payments are current, but high interest prevents payment in full, which leads to the stress of limited cash flow every single month. The property is a split-level detached with a large backyard in a mature neighbourhood – a highly marketable investment. Our broker partner engaged the MCAN Deal Hub team prior to submission due to high ratios on the deal. Through discussion, we discovered that the applicant’s mother lives in the home, representing contributory income that got us to within exception range on the ratios. We approved this deal at 75 percent LTV and 30-year amortization with a small exception for ratios just over 55%/55%. A rate discount of 5 bps was applied because our broker partner holds Sprint status, and the compensation was bumped by 5 bps because our Deal Hub team was engaged. Without them, this deal could not have been packaged for approval. In partnership with One Tree Planted, we’ll also plant four trees in Canadian regions impacted by deforestation and wildfire – that’s one for our client, one for our partner, one for community, and one for the HomeTeam!

SCORE in action: the Big Deal

Providing help where it’s needed

Canadians aged 30–49 hold the most debt of any age group

66% of SCORE clients are 30–49

Average GDS/TDS of SCORE clients is over 50%/50%

Source: “How much debt is each generation of Canadians carrying, and how do you compare?” The Globe and Mail

Fund more deals. Faster.

70%++ approval rate on deals discussed with the MCAN Home Deal Run Hub

Earn 5 bps more on all deals packaged in partnership with the deal run team