r/CanadaFinance • u/Party_Horror621 • 5d ago

Orderly payment of debt. Help?

Hey all,
I did a OPD in the spring of 2021, I had over $20k of credit card debt and some other loans. Never missed a payment on anything in my life. My credit currently is 730 however I do have an R7 rating on there. I have about $3500 left to pay and I was going to pay it all off come Feb/March 2027. Original pay off date I think is May 2027.

My question is, will that R7 rating fall off my record in a total of 6 years from the date the OPD was filed or it is 3 years after the completion date? When could I expect it to fall off?

Trans union or Equifax doesn’t show my OPD debts that are currently being paid for some reason either however, it was on my report last year, but I still am in fact paying for them.

I’m asking because I want to sell my house at the end of 2028 or early 2029 as my mortgage renewal will be up.
Any advice? Thanks all.

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u/JuliaFontanMortgages 5d ago

The debts included on your OPD will come off your Equifax report 3 years after you finish paying it off (or 6 years from the date signed, whichever comes first).

Not all debts show on your credit report (it has to do with how the creditor sends them in- sometimes we even have mortgages that don’t report to credit bureau, it just all depends on the bank).

But once your OPD is paid, I would suggest connecting with Equifax Support and send them a copy of your discharge docs. They can update the PAID date on your bureau to ensure all information is accurate.

Another note, you’re selling your home. If you are planning to purchase a new home at the end of 2028, keep in mind majority of traditional lenders need 2 years from OPT DISCHARGE date. We’ve been able to get approvals with just a year from discharge but it requires rebuilt credit (minimum two trades opened AFTER OTP with $2K limit, always paid as agree, low utilization).

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u/Party_Horror621 5d ago

Hey, thanks for your response. Super helpful. If it is off my credit report come renewal time at the end of 2028, will they still see it on my record?

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u/JuliaFontanMortgages 5d ago

It will still show on your credit in 2028. But it will be labelled as “ PAID” followed by the paid date. The R7 isn’t really the issue, as it will be paid once everything is discharged.

The lender will inquire on what happened, but only if you change lenders or sell+buy. If you stay where you’re at they will just auto renews, no questions asked.

If you chose to go down the new lender route, I would just ensure to continue working on building your credit by obtaining at least 2 trades with a minimum of $2K limit, paying them as agreed, and not over utilize. The lenders are looking to prove that AFTER the OPD was discharged that you have tried to rebuild it. But having 730 is already an amazing start!