• Private Mortgage ScamsTop 5 Warning Signs of Private Mortgage Scams

    At Robert Floris’ Mortgage Architects, we believe in helping the consumers avoid scams and charlatans that prey on vulnerable people. We really hope it helps. Private Mortgage Scams target clients who are often desperate and cannot get a mortgage or financing in a regular financial institution.

    1. Private Mortgage Scams Seek Cash Upfront

    Unfortunately, these criminals will ask for money before they start working on your file. This is 100% illegal in Canada. If they ask for cash, let it be a warning that these are a con artists. One of our clients was a victim of this con. Remember in Canada, the lenders do not get paid until the transaction is completed.

    2. Beware Private Mortgage Scams With No License To Practice

    Regular mortgage brokers are licensed with FSCO in Ontario (Financial Services Commission of Ontario). When providing private mortgages, there is a strict code of ethics. These ethics are in place to protect the consumer. A great example is if a broker or private lender is charging a fee, the borrower has a 48 hour cooling period. Ask the lender to provide their mortgage license as proof for better protection.

    3. Private Mortgage Scams Lie To Clients

    They realize these clients are desperate so they give false hope. Do they really care? No, they do not care if you eat. If they do provide a loan, it is at costs, interest rates and fees that make the mafia look cheap. Why? Control. They WANT you to fail so they can charge again and again.

    4. Private Mortgage Scams Do Not Provide An Exit Strategy

    A private mortgage should be a one or two year term at most. Remember that this is a Band-Aid solution. In a year, hopefully you’ll be back to work, or your health improves, or you know you’re getting a raise, or you will be debt-free. There must be a solution or other choices might be better for your family.

    5. Private Mortgage Scams Commit Identity Theft

    Some of these scumbags want to get your private information. Very simply, they will then pretend to get you a private mortgage but will instead use your information for their gain. You think I’m kidding: a woman from Mississauga was defrauded hundreds of thousands of dollars by the scams.

    We hope this helps! As the saying goes: if it sounds too good to be true, it probably is. We wish you a safe landing.

    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.

    If you would like to apply for a mortgage online, please follow this link.

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    Thanks for reading!

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