53% of consumers indicated that mortgage fraud was a growing problem in Canada in a recent Equifax survey.
This is a very high percentage!
Mortgage fraud is a big concern in Ontario. One reason for this is that the province’s housing market is very difficult to crack into, especially for first-time homebuyers.
This means that younger Canadians may resort to these activities to enter the competitive real estate market. In fact, according to Equifax, they are almost twice as likely to inflate their incomes to secure homes.
The situation is the same when it comes to credit score. About 60% of Canadians don’t really check their credit scores before applying for mortgages. That is why some of these individuals are not able to secure mortgages based on their financial standing.
Additionally, while homes are becoming increasingly expensive to buy, mortgage regulations are also being tightened.
For instance, Canada Mortgage and Housing Corporation (CMHC) recently announced major changes to its underwriting policies for insured mortgages:
- GDS/TDS ratios limited to 35/42,
- Minimum credit score set at 680,
- And non-traditional sources of down payment not being considered as a part of equity.
These are just some of the reasons why some Ontarians may resort to fraudulent activities.
These activities include Fraud for Shelter, Occupancy Fraud, and Home Appraisal fraud.
Being a lender, these rising numbers can be a cause of concern.
But, don’t worry – we’ve got your back!
Purview AVMs can help provide you real-time estimates of the market value of residential properties based on in-depth analysis of property location, market conditions, and public record data.
You also get access to a Fraud Check Report. The report includes eighteen configurable queries that check for indicators of suspicious activity on the property under review. Once the check is complete, you receive a summary for each applied fraud parameter.
By leveraging Purview AVM, you can not only identify fraud at an earlier stage but also save on time and costs.
To learn more about our fraud detection solutions, reach out to us on 1-855-787-8439 or visit www.purview.ca.
What has your experience been when it comes to mortgage fraud in Ontario? Share your insights with us on social media. Purview is on Facebook, Twitter, and LinkedIn.