As instances
of title fraud repeatedly make the headlines, nearly one-third of Canadians
have become concerned that someone could sell their home without their
knowledge.
The anxiety
was felt by 29% of respondents to a recent fraud prevention survey from Equifax;
others worried that identity thieves could take out cash using their home as an
asset, or take out a loan using their mortgage information.
Nearly half
of those surveyed see mortgage fraud as a growing problem in Canada, and 37% feel
they’re currently at a greater risk of falling victim to such a crime than ever
before.
Since the
start of 2023, a number oh homes in the Greater Toronto Area changed hands
without the knowledge or consent of the legal homeowner. A similar scenario is
playing out in the rental landscape, with hopeful tenants unknowingly handing
over substantial deposits to scammers.
Thirty percent
of respondents to Equifax’s survey believe there will be increase in people
providing false information on mortgage financing applications over the coming
year, and 37% believe the same regarding rental applications. Over one-third
feel vulnerable to such types of fraud.
Mortgage
payments have grown increasingly expensive over the past year as interest rates
rose rapidly. With affordability dwindling, a record high number of Canadians
don’t think they’ll ever be able to buy a home, and nearly one quarter say they’ve
been prevented from doing so by the mortgage stress test.
In December,
the Office of the Superintendent of Financial Institutions (OSFI) opted to
maintain the qualifying rate for its mortgage stress test (your rate +2% or
5.25%, whichever is higher). With mortgage rates currently hovering around 6%, borrowers are having to
qualify for upwards of 8% in some cases.
Forty-one
percent of those surveyed believe the federal government should relax the
mortgage stress test for first-time buyers, 38% think it should be relaxed for
all buyers, and 26% would like it to be eliminated altogether.
ODFI is currently
mulling over new mortgage lending restrictions, including loan-to-income and debt-to-income
restrictions. If implemented, the measures would further limit what some
borrowers qualify for.
To protect
yourself from mortgage fraud, the Canada Mortgage and Housing Corporation
advises getting title insurance, obtaining a property’s sales history before
making a purchase, and always using licensed or accredited mortgage and real
estate professionals.
Source By:
STOREYS