Average home prices Toronto: Introduction
Everyday we’re inundated with stories in the newspapers, on television and online about the average home prices in Toronto and in the rest of Canada. Many are left wondering what they can possibly do to get into this very hot market. Unfortunately as a result there’s been a surge in mortgage fraud.
Average home prices Toronto: What is mortgage fraud Canada?
Mortgage fraud takes place when fraudulent information is used to qualify for a mortgage. A classic example of mortgage fraud is a prospective home buyer submitting fake or altered employment letters, bank statements or tax returns to qualify for a large mortgage.
Average home prices Toronto: How prevalent is mortgage fraud Canada?
According to credit reporting agency Equifax:
- The number of mortgage applications flagged as potentially fraudulent has risen 52% since 2013
- About 90% of all mortgage applications flagged for potential fraud have come from banks and not other types of mortgage lenders, largely because banks have become better at spotting fraud attempts
- 13% of Canadians told Equifax it was okay to tell “little white lies” on their mortgage applications
- Roughly 67% of mortgage applications flagged for fraud came from Ontario
- Approximately 12% of suspected mortgage fraud came from British Columbia
- Only 8% admitted to actually falsifying information on their own credit applications
Average home prices Toronto: Why are typically law-abiding Canadians being driven to commit mortgage fraud in Canada?
It’s no secret that home prices are continuing to rise. The latest federal legislation has made it more difficult to qualify for an insured mortgage. Many Canadians are realizing that home ownership is beyond their reach. In fact according to an online survey by Equifax, 84% of Canadians felt the country’s housing market had become too expensive for first-time buyers. Of those who didn’t own a home, 20% said they worried they may never be able to save enough for a down payment. Clearly desperate times are calling for desperate measures and a surge in mortgage fraud is the result.
Average home prices Toronto: What should you do if you have too much debt?
Committing a crime is never the answer. And make no mistake, mortgage fraud is a crime. It can be punishable by hefty fines and/or jail. If your goal is to buy a house, we can’t do anything about the real estate prices, but the Ira Smith Team can help you get your debt issues under control so that home ownership may be in your future. Give us a call today so that Starting Over, Starting Now you can conquer debt and start saving for your future.