Mortgage fraud: what you need to know

Descriptive text: Red Flags of Mortgage Fraud 

Mortgage fraud can be a criminal offence when someone – you, a mortgage broker or agent, a real estate agent or a lawyer – misrepresents, lies or exaggerates information to obtain a mortgage that would not have been granted if the truth had been told. According to Equifax*, suspected fraudulent mortgage applications have increased by 52 per cent in Canada since 2013, with Ontario seeing the majority. Mortgage fraud can also occur when unscrupulous people in the home buying process take advantage of homebuyers by charging unlawful fees or inflated interest rates.

Recent changes to interest rates and borrowing rules might make it harder to reach your home-buying dreams, however, it’s important to recognize what potential mortgage fraud looks like, understand the consequences, and know how to report it and stay safe.

It may be mortgage fraud if ….

How to report possible mortgage fraud

QUIZ: How good are you at spotting mortgage fraud? Take the quiz and find out.

You May Be Interested In:

• Scams and warning notices: be aware of the most recent scams so you can stay protected
• Understanding the Risks of Getting a Mortgage: buying a home involves a lot more than saving for a down payment
• The Mortgage Application Process: discover the steps you need to take to secure a loan
• Using a Mortgage Agent/Broker: find out what they can do for you as part of your home buying team
• The Mortgage Contract: do you know what you are agreeing to?
• Find a Licensed Mortgage Brokerage, Broker or Agent in Ontario

* Equifax Canada, January 2017. Mortgage Fraud on the Rise; 13% of Canadians Say 'a Little White Lie' is Okay to Get the House You Want. https://www.consumer.equifax.ca/about-equifax/press-releases/