Mortgage Fraud

What is mortgage fraud?

Mortgage fraud is the intentional manipulation of personal and/or financial information by an individual to qualify for a mortgage or to assist another individual to obtain a mortgage, that would otherwise not have been approved or been approved for a lesser amount. Mortgage fraud includes the attempt to defraud a lender even if the lender did not approve or fund the mortgage.

You are committing mortgage fraud if you:

• Provide false or misleading information to obtain a mortgage
• Omit relevant information in order to obtain a mortgage
• Provide false or misleading documentation to obtain a mortgage
• Alter true and correct documentation in order to obtain a mortgage
• Collude with another to use your information to obtain a mortgage for them or someone else
• Fail to report a change in your personal circumstances after a mortgage loan application has been made and prior to the mortgage being funded

Mortgage fraud is a criminal offence and may result in:

• Serious legal actions by the lender and the mortgage insurer
• Inability to declare bankruptcy if subject to a judgement resulting from fraud
• Significant downgrading of your credit history
• A maximum of 14 years imprisonment for each fraud case
• Higher mortgage costs and insurance fee for all borrowers
• Increased activity by organized criminals in the community
• Deterioration of housing in the affected communities