Understanding Mortgage Fraud in Canada
Mortgage fraud costs Canadians millions annually. Understanding the types and warning signs helps protect your largest investment.
Types of Mortgage Fraud
Title Fraud:
- Criminals steal your identity
- Transfer title to themselves
- Obtain mortgage against your property
- Disappear with the funds
Value Fraud:
- Inflated property appraisals
- Undisclosed property defects
Income/Application Fraud:
- Falsified employment letters
- Fake bank statements
- Undisclosed debts
Warning Signs of Fraud
When Buying:
- Seller pressuring fast closing
- Price significantly below market
- Reluctance to show property
For Homeowners:
- Unexpected mortgage statements from unknown lender
- Mail from your address going elsewhere
- Property tax bills not arriving
Protecting Yourself
Title Insurance:
- Cost: $300-$600 one-time premium
- Covers title fraud losses, unknown liens, survey issues, forgery
Title Lock/Monitoring Services:
- Registry monitoring for your property
- Alerts for any title changes
- Early warning of potential fraud
If You Suspect Fraud
- Contact your lender immediately
- File police report
- Contact your title insurance company
- Freeze credit with bureaus
- Document everything
Frequently Asked Questions
Does title insurance cover all fraud types?
Title insurance covers title fraud and many defects. It doesn't cover application fraud or your own misrepresentations.
How common is mortgage fraud in Canada?
Industry estimates suggest 1-3% of mortgage applications involve some form of fraud or misrepresentation.
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