Private seller offering a handshake deal or too-good-to-be-true vendor take back mortgage? Struggling to get last-minute financing to buy a home? Mortgage fraudsters could be targetting you by:

Offering you a last-chance mortgage at an interest rate you can’t afford. You default. They foreclose.
Asking for cash or exorbitant fees. Could be a kickback. Fees you pay mortgage brokers or lenders should go from your lawyer to a brokerage or financial firm, not a broker or lender directly.
Talking you into using their lawyer or lender to refinance your mortgage. They withdraw the difference between your mortgage and home equity, then pocket the cash. There goes your credit score and retirement fund.
Doing mortgage deals verbally. Not putting it in writing makes it harder to take legal action if a mortgage is not what you expected. Reputable lenders give you a written letter of commitment.

More on recognizing mortgage fraud.

Who’s Scamming Who

Scammers can be disreputable deal makers, identity thieves or, as a CBC investigation revealed, homeowner impersonators hired by organized crime rings to dupe lenders and land registries. How “stand-ins” pulled off 32 (and counting) mortgage frauds in Ontario and British Columbia. What to do if you are scammed by a real estate title fraud.

Are You Guilty of Mortgage Fraud?

You may be if you fudged or lied about your income, down payment source, or plans to rent a property. See 8 ways homeowners may be committing mortgage fraud.

It’s a Crime, But…

Canadians lost $490 million to fraud in 2022 (Canadian Anti-Fraud Centre stats, 2022). With only 5% of all frauds reported, that could just be the surface. Unofficial estimates put the true cost of fraud to Canadian taxpayers at over $3 billion in 2014 alone.

Mortgage fraud is a crime, but funding pressures on police and prosecutors mean few fraudsters are charged or tried. Even when they are, compared to drug dealing or white collar crime, sentences can be light. 2022’s most popular scams.

Top Signs Your Mortgage is in Peril

Your home may be imperiled if:

A seller or realtor is too chummy with a lawyer or lender they suggest you use.
You’re asked to sign blank documents or hurried through reading mortgage papers.
You’re encouraged to falsify a mortgage application.
A property’s value or price is inflated to get a mortgage.
Mortgage statements don’t arrive.
Your property taxes go unpaid when the lender agreed to pay them on your behalf.

Despite what you may be told, there is no easy money in real estate. Loan obligations you sign are your responsibility, for the life of your mortgage term. Title insurance Ontario homeowners need.

Protect Yourself From Homeowner Frauds

Axess Law protects you from fraud by adding title insurance when you close a real estate deal.

You can protect yourself by:

Keeping financial information private. Resist the urge to share income, assets, or debts online when you can meet in person instead.
Calling a real estate lawyer if someone asks to use your home or credit cards to finance anything.
Researching a lender’s reputation before you agree to a mortgage or credit line.

Consumer advice on mortgage fraud.

How to prevent title fraud.

Report Mortgage Fraud in Ontario

Mortgage fraud can be reported online to the Canadian Anti-Fraud Centre. A new National Cybercrime and Fraud Reporting System goes live in 2023/24. If you can’t get satisfaction complaining in writing to a mortgage brokerage, contact the Financial Services Commission of Ontario (FSCO).

Talking to a real estate lawyer

Why You Need a Real Estate Lawyer

Mortgaging your home is a major financial transaction. Hiring an Axess Law professional real estate lawyer keeps your real estate deal real. What a mortgage lawyer can do for you.

Our real estate lawyers review your agreement of purchase and sale (APS) for essential clauses that protect your financial interests. We explain terms and conditions you may not understand. If offers to purchase or mortgage documents seem too good to be true, your Axess Law real estate attorney alerts you.

Hit a roadblock in your mortgage negotiations? Your Axess Law mortgage lawyer negotiates with the seller’s lawyer to amend the APS. We review the consequences of backing out of an agreement of purchase and sale with you or liaise with your lender on temporary bridge financing. Questions to ask real estate lawyers.

When your mortgage is ready to go, your Axess Law mortgage lawyer searches title to your property to ensure you are the new legal title holder. Ask us about adding a spouse to title. Arranging the property title transfer (Ontario).

Affordable Legal Services, Anywhere in Ontario

Access lawyers for less in the Greater Toronto Area, Ottawa, or anywhere in Ontario when you buy, sell, or transfer property. Axess Law’s flat fee real estate lawyers are affordable, and our rates are all inclusive (excluding taxes, disbursements, and third-party charges). Axess Law offers you only the legal services you absolutely need. Your final invoice includes no surprises or hidden charges. Your itemized statement of adjustments is explained when we deliver it, and we answer any questions you have about it.

Find a Toronto real estate lawyer.

Affordable Real Estate Lawyers, Anywhere You Are

Access lawyers for less in the Greater Toronto Area, Ottawa, or anywhere in Ontario when you buy, sell, or transfer property. Axess Law’s flat fee real estate lawyers are affordable, and our rates are all inclusive (excluding taxes, disbursements, and third-party charges). Axess Law offers you only the legal services you absolutely need. Your final invoice includes no surprises or hidden charges. Your itemized statement of adjustments is explained when we deliver it, and we answer any questions you have about it.

Hire a real estate lawyer near me.

Book a Real Estate Lawyer in Ontario

Book legal appointments online with our easy web form or call toll free to 1-877-402-4277 (647-479-0118 in the Greater Toronto Area) to speak to our staff. An Axess Law licensed real estate lawyer can meet with you in person at any of our conveniently located Greater Toronto Area or Ottawa law offices. We have onsite parking and easy transit access to make your appointment go quicker.

Can’t leave home? Axess Law goes online by virtual video conference anywhere in Ontario. Call to book with a virtual real estate lawyer.

Click here to learn more about Axess Law’s real estate law services.