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.
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* 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.