A powerful majority of Canadians imagine mortgage fraud is making it more durable for sincere consumers to compete in right this moment’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 Trade Affiliation of Canada (MTIIAC).
The ballot discovered that 78% of Canadians say mortgage fraud creates an unfair enjoying subject, whereas 64% imagine it contributes to greater house 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 inside the subsequent 5 years.
“Canadians desire a fairer, extra clear system that protects sincere homebuyers,” stated 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 may strengthen belief within the housing market and assist guarantee everybody performs by the identical guidelines.”
The ballot additionally factors to sturdy public backing for coverage options, with practically two-thirds (65%) of Canadians saying the Canada Income Company ought to play a direct function in stopping fraud, whereas 72% would help permitting their lender or mortgage dealer to confirm revenue immediately with the CRA.
Current information from Equifax Canada discovered that total mortgage fraud has eased because the pandemic, however that circumstances are climbing amongst potential first-time consumers. The info exhibits that customers with out an current mortgage have been practically twice as more likely to commit fraud as present mortgage holders at 0.31% in comparison with 0.19%.
The info from Equifax additionally discovered that falsified financials stay the largest concern, making up simply over 30% of fraud circumstances in late 2024. Misrepresented revenue or pretend paperwork corresponding to pay stubs and tax slips appeared in additional than 95% of purposes flagged as fraudulent.
The place revenue verification stands right this moment
Requires stronger safeguards have grown louder lately, with Mortgage Professionals Canada on the forefront of urgent Ottawa to prioritize a safe digital revenue verification system. The affiliation has constantly argued that, with borrower consent, such a software would enable lenders and brokers to verify revenue information immediately from CRA data, closing the hole that at present 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 trade teams and obtained greater than 1,600 responses. The suggestions confirmed sturdy help for a digital software, with contributors pointing to pretend or altered revenue paperwork as probably the most urgent fraud threat.
The CRA report famous: “Contributors have been clear {that a} software 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.” Trade members additionally harassed 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 stated, “We name on the federal authorities to re-prioritize this initiative and transfer rapidly to ship a digital revenue verification software, 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
