Information from a reporting agency shows that the rate of mortgage frauds has skyrocketed at a fast pace in certain housing markets in Canadian provinces. Due to this shocking rate at which house prices are increasing, buyers have been driven out and more attention has been brought to money launderers.
Since 2013, the number of supposedly fraudulent mortgage plans and rules increased by about 52 per cent. Most fraudulent mortgage plans are believed to come from provinces like Ontario and British Columbia. These two provinces are believed to be the center of which prices have risen at a surprising rate in the recent years.
Some companies that take reports on consumer spending and businesses have taken some information on fraudulent mortgage plans that have mostly come from banks, money lenders and mortgage insurers and insurance companies. These banks and companies have indicated some distrustful signs of fraudulent mortgage plans and activities.
Most examples of fraudulent mortgage plans and rules comprise of home buyers who fell for fake employment letters and bank statements in order to get a large mortgage. Also, these are also reasons for money laundering and theft of identity.
It is believed that about 90 per cent of mortgage plans/applications this year and the recent years have been suspected to be fraudulent. They are mostly brought from banks instead of mortgage lenders. This is all thanks to banks and their improved skills of detecting frauds.
The finances of home buyers have been reduced due to the draining of house prices in the real estate markets such as that of Vancouver and Toronto. In order to get approval for loans, home buyers have been pressurized to change their mortgage plans and rules.