Mortgage fraud in Canada is skyrocketing as interest rates rise. Borrowers simply can’t qualify so the sharks are out now providing forged paperwork to help them get into homes.
To see how bad it is getting, CBC News Canada went undercover to investigate how networks of real estate agents, mortgage brokers, and bank employees perpetrate mortgage fraud for a fee and secure their own commissions by submitting forged documents for approval.
To do that, they sent two reporters to visit 10 properties for sale by real estate agents or brokerages where previous research indicated fraud may occur.
The undercover buyers then told each agent that they had enough money for a 20 percent down payment but were unsure about their eligibility for a mortgage since one of them had an undeclared cash income.
The agents all recognized the couple would not qualify for the mortgage needed to purchase the home. Still, six out of 10 offered to facilitate mortgage fraud by connecting the couple with counterfeit documents and brokers who would submit the application on their behalf.