Northumberland Ontario:
Mortgage fraud continues to plague the real estate sector, threatening both the industry and public trust.
As RECO (The Real Estate Councill of Ontario) notes, vigilance and education are key to combating this menace.
Let’s delve into actionable steps to shield yourself from becoming a mortgage fraud victim.
Recognizing the Threat
What is Mortgage Fraud?
Mortgage fraud encompasses deceitful practices aimed at securing mortgage financing under
pretenses. These fraudulent actions not only jeopardize the integrity of the real estate market but can
also lead to severe financial and legal repercussions for those involved, knowingly or unknowingly.
Enforcement and Prevention
Regulatory Actions
RECO plays a pivotal role in addressing mortgage fraud through education and investigative activities.
Although RECO cannot prosecute under the Criminal Code of Canada, it can investigate criminal offenses
under the Trust in Real Estate Services Act, 2002. Registrants found guilty of mortgage fraud risk losing
their registration, ensuring that only trustworthy individuals remain in the industry.
Collaborative Efforts
Fighting mortgage fraud requires a collective effort. Organizations like the Law Society of Upper Canada
and the Canadian Association of Accredited Mortgage Professionals actively combat fraud through
educational initiatives and collaborative measures.
Consumer Tips to Avoid Mortgage Fraud
Be Suspicious of Red Flags
Inflated Income Claims: If asked to overstate your income on a mortgage application or provide
false statements, refuse. Honest declarations safeguard your financial future.
Incomplete Documents: Never sign forms with blank sections or incomplete information.
Always ensure all details are accurate and complete before signing.
Fee Offers for Your Name and Credit: Decline any offers to use your name and credit for a fee.
This is a classic sign of fraudulent activity.
Avoiding Property Inspections: Always insist on visiting and inspecting the property you plan to buy.
Skipping appraisals or inspections can leave you vulnerable to fraud.
Golden Rule: If it sounds too good to be true, it probably is.
Choosing the Right Mortgage
If you have saved 20% or more for a down payment, a conventional mortgage is your safest bet.
It offers stability and lower interest rates.
Rent-to-Own: A Viable Alternative
For those who may not qualify for a traditional mortgage, Rent-to-Own is a strategic path to
homeownership. Ideal candidates for this program typically face:
Credit Challenges: Previous financial setbacks that can be remedied over time.
Self-Employment: Proven steady income over a long period.
New Canadians: Establishing credit history.
Divorce Recovery: Rebuilding financial stability post-divorce.
With Rent-to-Own, a portion of each monthly payment goes toward your future down payment,
Helping you save and repair your credit simultaneously. Our program is designed to support families
in transitioning from renting to owning, ensuring a stable and secure home environment.
Secure your financial future and avoid mortgage fraud. Explore the Rent-to-Own program with us today.
Contact Kendell for more information at 905-440-0505
Top-Tier Mortgage-Related Sources
Canada Mortgage and Housing Corporation (CMHC) offers extensive resources on housing markets, mortgage insurance, and fraud prevention.
It includes valuable insights for both consumers and professionals in the real estate industry.
The Financial Consumer Agency of Canada (FCAC) provides tools and resources for consumers to understand
their financial rights and responsibilities. Their website has sections dedicated to mortgage fraud and how to protect oneself.
The Canadian Real Estate Association (CREA) represents real estate professionals across Canada and
provides valuable information on market trends, real estate practices, and consumer protection.
Ontario Real Estate Association (OREA) offers resources and education for real estate professionals in Ontario
Its website provides information on best practices and regulatory compliance, making it a useful resource for
staying informed about industry standards.
The Law Society of Ontario provides guidance and resources for lawyers and consumers regarding
legal aspects related to real estate transactions.
Equifax Canada and TransUnion Canada
Credit bureaus like Equifax and TransUnion offer resources on credit reports, identity theft, and fraud prevention.
Their websites provide tools to monitor and protect your credit.
Mortgage Professionals Canada (MPC) is a national association representing mortgage brokers, lenders, and insurers.
They offer resources and education on mortgage practices and fraud prevention. Visit their website for more information.
Better Business Bureau (BBB) provides consumer protection resources and helps identify reputable businesses and potential scams.
Their website can be a valuable tool for researching companies involved in real estate transactions.
Government of Canada - Anti-Fraud Centre offers extensive information on various types of fraud, including mortgage
fraud.
Bottom line, if you're not sure, stick with trusted industry professionals who have been around for a while.
All Real Estate Information Courtesy of
Matt Cooper CEO | BROKER OF RECORD
Matt Cooper Realty Group Brokerage
☎️ 905-440-0505
