Beware promises of “easy money” in real estate

In fraud prevention, there’s a general rule of thumb: if sounds too good to be true, it usually is. This is particularly true when it comes to mortgages and promises of “easy money” in real estate.

Beware of “No Money Down” deals or offers from others to provide a portion of the down payment. – CMHC

Just like those who are misrepresenting information in order to purchase a property are committing mortgage fraud, mortgage lenders are committing fraud if they misrepresent information or intentionally try to scam a consumer. Those who commit mortgage fraud can be held criminally responsible for their actions. You can prevent this by being an informed consumer and exercising caution and diligence when shopping around for a mortgage lender.

• Never accept money or a loan or add your name to a mortgage unless you fully intend to purchase that property.
• Use licensed or accredited mortgage and real estate professionals only: always know who you’re doing business with. It’s a great idea to seek a referral or testimonials before doing business.
• Always read through legal documents thoroughly and ensure you understand them before you sign anything. You always have the freedom to seek a second legal opinion or hire a translator if necessary.
• Contact the local provincial Land Titles Office to obtain the sales history of any property you are thinking about buying, and consider having it inspected and appraised.
• Be wary of anyone approaching you with ways to make “easy money” in real estate, or offer you a “no strings attached” deal with no down payment.

If you suspect someone of committing mortgage fraud, you can report them:

On-line: www.antifraudcentre-centreantifraude.ca
Toll Free: 1-888-495-8501
Toll Free Fax: 1-888-654-9426
Email: info@antifraudcentre.ca

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