8Twelve Financial Technologies recently entered into an agreement with Dwello Payments, a fellow Toronto fintech platform that helps renters and others build credit.
As part of the agreement, Toronto’s 8Twelve Financial will provide its digital-based mortgage solutions to Dwello.
Similar to services such as Toronto-based Borrowell’s Rent Advantage and a new Boost feature from Vancouver’s Billi Labs, Dwello users can sign up for free to pay rent through Dwello’s payment platform. Their rent payments get reported to Equifax, one of the major credit bureaus serving Canada.
Over time, on-time payments help build credit scores, unlocking favourable offers on credit products such as mortgages, the startup notes.
In fact, the goal of this partnership is to help Dwello renters eventually become owners, according to a statement from the company.
“Rent reporting to the bureau has demonstrated success in assisting renters in improving and establishing their credit profiles,” affirms Dwello CEO Roy Moufawad. “This has led to increased access to preferred lending products and favourable rates, as well as a broader range of rental properties.”
By integrating into 8Twelve’s proprietary INFIN8 platform, Dwello customers will be notified when they qualify for a mortgage, he says.
INFIN8 “utilizes real-time analytics, AI, and workflow automation to identify the best possible mortgage from Canada’s largest marketplace of bank, alternative, and private mortgage products,” according to the Canadian fintech. The cloud platform pulls from 7,000 mortgage products across several dozen lenders.
8Twelve’s other products, including Co-Equity down payment programs, further facilitate home ownership.
“This initiative has benefited hard working Canadians who may have otherwise been disadvantaged in the system due to low credit scores or non-existent credit profiles,” added Moufawad. “Dwello’s rent reporting system is beneficial for both renters in Canada and financial institutions by giving them visibility into the rental market.”
It’s a win-win because, he says, because “landlords have found that using this platform to collect rent not only simplifies the process but also helps retain tenants.”
These win-win situations are emerging as “innovation is moving at a very rapid pace in the real estate and mortgage industries,” notes Jason Baibokas.
Baibokas, who serves at chief financial officer of 8Twelve, says that fintech-based solutions did not exist for renters or homebuyers “until very recently.”
“People were left to their own devices to figure out how to migrate themselves from being a renter to being a homeowner,” he says.
Now, a convergence of finance and technology “has finally reached a point where an increasing number of tools are available to plan for and achieve home ownership,” according to Baibokas.
“At 8Twelve we strive to integrate the best and most intelligent solutions in our mission to streamline the home financing process,” he says.
8Twelve was founded in the Great Lakes region of Ontario in 2018.