Mortgage Fraud Prevention: Protecting Yourself

The Canadian Anti-Fraud Centre reports mortgage fraud losses exceeding $74 million annually. Stay informed and protect yourself with the strategies outlined in this guide.

Falsifying income documents, employment letters, or tax returns to qualify for larger mortgages. This puts borrowers at risk of unaffordable payments and foreclosure.

Artificially inflating property values through fake appraisals or staged transactions to secure larger mortgage amounts than the property is worth.

Using stolen personal information to apply for mortgages without the victim's knowledge, or impersonating qualified borrowers to obtain financing.

Using individuals with good credit to purchase properties on behalf of others who cannot qualify, often without the buyer's full understanding of the risks.

• Seek legal advice if documents were signed

All information should be completed before signing. Review everything carefully and ask questions about anything unclear.

Never exaggerate income, assets, or employment details. Fraud can result in criminal charges and loan default.

Maintain records of all documents submitted and communications with lenders or brokers.

With increasing digital mortgage applications, protecting your personal information online is crucial for preventing identity theft and fraud.

If You Become a Victim of Mortgage Fraud

Contact your lender immediately to report the fraud

Contact credit reporting agencies to place fraud alerts

• Work with your bank to freeze affected accounts

• Monitor credit reports regularly for new fraudulent activity

• Keep detailed records for insurance claims or legal proceedings

• Work with legitimate professionals to resolve mortgage issues

If you suspect mortgage fraud, act quickly to minimize damage.

Verify mortgage broker and lender licenses through provincial regulators.

Check your credit report for unauthorized inquiries or accounts.

Compare offers with current market rates from multiple sources.

Protect yourself by working with licensed, reputable mortgage brokers and lenders who prioritize transparency and ethical practices.

Essential guide to recognizing, preventing, and protecting yourself from mortgage fraud schemes in Canada