100% CONFIDENTIAL SUPPORT:

How to Protect Yourself from Mortgage Fraud in Canada

Share This Post

mortgage fraud

Mortgage fraud and title fraud are the most devastating types of real estate fraud in Canada. Although real estate fraud in general hurts homeowners, victims of mortgage fraud and title fraud can lose the only home they have and end up homeless.

What is the Difference Between Mortgage Fraud and Title Fraud?

Title fraud involves someone masquerading as the homeowner to sell the home or get a mortgage loan from the home. Mortgage fraud involves intentionally submitting inaccurate, incomplete, or fraudulent information to the lender to get approved for a mortgage that the homeowner does not qualify for. In most cases of mortgage fraud, there is usually a claim for a higher income, use of falsified appraisal of the property, or fake identifications. These can be discovered by counterchecking submitted documents for veracity.

Is Mortgage Fraud a Big Problem in Canada?

Mortgage fraud affects lending institutions and the banking industry profoundly. The homeowner who got approved for a mortgage that they cannot truly afford also stand to lose their home with just a minor financial mishap in the future. This is why organizations that are involved in real estate, the banking industry, and the police take mortgage fraud seriously. Unfortunately, there is no central agency that records incidences of mortgage fraud and those that discover it seldom report it; hence, there is no real statistical data that can gauge how prevalent is mortgage fraud in Canada.

Are Banks Working to Prevent Real Estate Fraud?

Banks have plenty of measures in place to identify and prevent cases of real estate fraud. They work with private investigators, real estate task forces, law enforcement, as well as their own security teams to catch criminals and develop better ways to protect against mortgage fraud and other types of real estate fraud. More so, the Canadian Bankers Association work with lenders, the legal profession, and other organizations to continually make changes to deter those who may be inclined to commit real estate fraud.

Protect Yourself from Mortgage Fraud

Fraudsters will take advantage of any weakness to commit fraud. As an individual, you must report suspicious activities and actively protect your personal data to avoid it getting used for fraud. If you own your home and want to prevent mortgage fraud and title fraud, then be sure to observe the following measures:

  • Refrain from giving out personal data via phone or email especially if you did not initiate contact with the people asking for your details.
  • Make sure all bills arrive on time and are not intercepted by identity thieves.
  • Safeguard your mail. Update addresses when moving to another place and do not leave mail in the mailbox.
  • Protect items with personal information such as phones, laptops, tablets, packages, memory cards, and the like. If throwing them out because they are no longer of use, be sure that important data are no longer readable or are already erased.
  • Keep your Social Insurance Number Card in a safe place. Do not use your SIN unless necessary.

What to Do If Your Business Fell Victim to Mortgage Fraud?

Fraud can still take place even when institutions and individuals are careful with their data. The first thing to do upon discovery of fraud is to gather all information that you can related to it. Note that the law has many ways to help you recoup losses if mortgage fraud is proven. If you need help proving mortgage fraud, it might be best to contact private investigators. Modern private investigation services use technology to trace possible fraud and provide you with information that can be used as proof in court.

 

More To Explore

online-romance-scam-investigations
Blog

How to Protect Yourself from Online Romance Scams

With online dating having become, arguably, the most popular way for singles to find love, it has also become a bastion of opportunity for scammers looking to pull on someone’s heart strings in an effort to pull open their wallets. According to the FBI, online scams have increased by almost 25% since 2019, and has resulted in a loss of over $500 million dollars to unsuspecting individuals. In this post, we’re going to go through some of the most common scams, how to avoid them and what to do if you believe you’ve fallen victim.

divorce-investigatons
Blog

How a Private Investigator Can Help in a Divorce Case

Divorce is in one of the most challenging, emotional and personal issues that any adult can face. Imagine a situation wherein your former life partner is now a stranger who may be out to get what you have or take away what is rightfully yours, including your children. During this critical time in your life, you can use all the help that you can get to get the best possible divorce settlement so that you can move on with your life. So how exactly can a private investigator help in a divorce case? Below are some of the ways that a private investigator can help in a divorce or child custody case.