Fake Documents To Get A Mortgage

It is called mortgage fraud when you fake documents to get a mortgage. Whether you try to qualify for a mortgage by exaggerating your income on your letter of employment, notice of assessment or T4, it is fraud. Not only can it have legal consequences, but it can also stretch your finances too thin. It can also put your mortgage broker in very hot water because the bank may suspect that he or she was in on it. NOT VERY NICE!

Mortgage Fraud Is More Common With Millenials

A new survey from Equifax has found that mortgage fraud is becoming more prevalent with Canadians, especially with Millenials. Many of them believe that is a victimless crime and justify their actions as such. It is not victimless. The rules are there for a reason and if you get caught, it could have detrimental effects. The Equifax survey found that almost 1/5 of Millenials admitted to exaggerating their income to get a mortgage. 12% of Canadians thought it was ok to do this but 23% of Millenials thought it was ok! That’s almost double!

Stress Test At Fault?

It is likely that the introduction of the stress test has contributed to this spike in fraud. The stress test tends to target Millenials who are trying to qualify for the purchase of their first home. It is out of reach so they feel that they need to resort to extreme measures. Thankfully, the Canadian Government has introduced some new first time home buyer incentives as of late. I don’t believe it goes far enough, but it’s a start!

Robert Floris is a Mortgage Broker. His office is located at 651 Fennell Avenue East in Hamilton, Ontario. If you would like to speak with Robert, he can be reached at 905-574-9200 #215. Alternatively, you can contact Robert here.

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