A powerful majority of Canadians imagine mortgage fraud is making it tougher for sincere patrons to compete in right now’s housing market, in line with a brand new nationwide survey carried out by Pollara Strategic Insights for Mortgage Professionals Canada (MPC) and the Mortgage and Title Insurance coverage Business Affiliation of Canada (MTIIAC).
The ballot discovered that 78% of Canadians say mortgage fraud creates an unfair enjoying discipline, whereas 64% imagine it contributes to increased residence costs. Greater than half of Canadians (58%) report worrying about mortgage fraud total, a quantity that rises to 65% amongst these planning to purchase a house throughout the subsequent 5 years.
“Canadians desire a fairer, extra clear system that protects sincere homebuyers,” mentioned Lauren van den Berg, President and CEO of MPC. “Mortgage fraud not solely undermines belief, it drives up housing prices for everybody. Earnings verification via the CRA is a sensible resolution that can strengthen belief within the housing market and assist guarantee everybody performs by the identical guidelines.”
The ballot additionally factors to robust public backing for coverage options, with almost two-thirds (65%) of Canadians saying the Canada Income Company ought to play a direct position in stopping fraud, whereas 72% would help permitting their lender or mortgage dealer to confirm revenue instantly with the CRA.
Current information from Equifax Canada discovered that total mortgage fraud has eased for the reason that pandemic, however that instances are climbing amongst potential first-time patrons. The information exhibits that buyers with out an current mortgage have been almost twice as prone to commit fraud as present mortgage holders at 0.31% in comparison with 0.19%.
The information from Equifax additionally discovered that falsified financials stay the most important concern, making up simply over 30% of fraud instances in late 2024. Misrepresented revenue or pretend paperwork resembling pay stubs and tax slips appeared in additional than 95% of purposes flagged as fraudulent.
The place revenue verification stands right now
Requires stronger safeguards have grown louder in recent times, with Mortgage Professionals Canada on the forefront of urgent Ottawa to prioritize a safe digital revenue verification system. The affiliation has persistently argued that, with borrower consent, such a instrument would enable lenders and brokers to substantiate revenue information instantly from CRA information, closing the hole that at the moment permits falsified paperwork to slide via.
The federal authorities dedicated in Funds 2024 and the Fall Financial Assertion to start rolling out such a system by early 2025. The CRA later held consultations with business teams and acquired greater than 1,600 responses. The suggestions confirmed robust help for a digital instrument, with members pointing to pretend or altered revenue paperwork as probably the most urgent fraud danger.
The CRA report famous: “Contributors have been clear {that a} instrument created by the CRA that enables mortgage professionals to confirm the validity of a borrower’s revenue would streamline the mortgage approval course of and cut back the dangers of fraud considerably.” Business members additionally careworn the necessity for real-time entry via a safe portal or API, a number of years of revenue historical past, and detailed information past a easy sure/no response.
Regardless of broad settlement on each the necessity and the answer, Canadians are nonetheless ready. In its newest launch, MPC mentioned, “We name on the federal authorities to re-prioritize this initiative and transfer rapidly to ship a digital revenue verification instrument, setting a transparent timeline and pathway in Funds 2025 to construct upon the necessary progress already made.”
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Final modified: September 8, 2025
