Mortgage Broker Regulators' Council of Canada

What Does Mortgage Fraud Look Like


Mortgage fraud happens when a borrower’s information is falsified to make it easier for them to qualify for the mortgage they want. It can also involve people who take advantage of homebuyers for their own benefit, usually for some extra cash.
”Red flags” of mortgage fraud may include:
  • Lying or allowing lies on your mortgage application about income, work status or any other information.
  • Being offered money for someone else to use your name and credit information to obtain a mortgage.
  • Getting monetary kickbacks to go with a specific mortgage lender.
  • Handing over cash to anyone at any time in the home buying process.
  • Being offered an interest rate or mortgage amount that’s too good to be true when a borrower has already been turned down by other lenders.
  • Being discouraged by a seller or investment adviser from seeing or inspecting the property you are buying.
  • Not receiving a lender-stamped commitment letter outlining the terms and conditions of the mortgage.
  • Not receiving copies of all documents during the application process when requested.
  • Signing a blank mortgage application or being asked to leave signature lines or other important areas on a loan application blank.