Mortgage fraud happens. Although professionals in the field do as much as they can to avoid mortgage fraud, unfortunately it is becoming more and more common. And with skyrocketing debt and house prices, experts say that residential mortgage fraud will happen even more in Canada. This means higher risk for lenders, clients, and the banking sector as a whole. Recently the economic risk rating was raised to 3 out of 10 based on this situation.
There are a few reasons why mortgage fraud occurs more frequently, and there are also ways to help avoid it. The skyrocketing housing prices and the resulting debt are some of the main reasons for the increase in mortgage fraud. When individuals cannot afford their home or mortgage, they are more likely to commit fraud in order to keep their home. Committing fraud can include overstating income amounts or lying on other documents in order to make themselves more attractive to a lender and their strict criteria.
Recently some large scale mortgage fraud cases have made the news, and this is bringing to light the serious fraud problems facing the Canadian housing market. Be aware that it is not always the client that commits fraud, and often corporations can do so as well.
Avoiding mortgage fraud starts with thorough cross checks of client information and the maintaining of an open and honest relationship between mortgage brokers, lenders, and their clients.
Do you want a solid and honest relationship with your Brampton mortgage broker that gives you confidence in your interactions? I will take the steps to avoid mortgage fraud, and help protect you from falling victim to it too. By working to secure you the best rate for your situation, you won’t have to worry about turning to fraud in order to pay your debts and keep your dream home.
Ready to get started? Contact me today.
