March is Fraud Education Month
March is Fraud Education Month in Canada, and it’s the perfect time to get educated on what mortgage fraud is, and how to protect yourself from it. Mortgage fraud is unfortunately an industry-wide problem and more common than you probably think.
How do you identify mortgage fraud?
Mortgage fraud is misrepresentation of information to help you obtain a mortgage, including:
- Inflating your income or misrepresenting your job
- Misrepresenting your income (stating you’re salaried, when you are contract, etc.)
- Not disclosing current debts and/or mortgage loans
- Inflating property value
How can you protect yourself against mortgage fraud?
- Never deliberately misrepresent ANY information during the loan process
- Always know who you are dealing with: get recommendations or referrals
- Never sign anything without reading it through carefully
- Seek legal advice
- Never trust anyone offering ‘easy money’ or ‘easy investment’ opportunites. What sounds too good to be true, usually is.
Looking for more resources on preventing mortgage fraud? CMHC has some free resources online. If you have specific questions about protection against mortgage fraud, please feel free to contact me.
