News

Mortgage scams can be devastating, leading to financial loss, ruined credit and even homelessness. In Ontario, the number of mortgage fraud cases has been increasing in recent years, with scammers taking advantage of the high demand for housing. Here are some tips to help you avoid falling prey to mortgage scams in 2023:

1. Be wary of unsolicited offers: If you receive an unsolicited offer for a mortgage loan, be wary. Legitimate lenders don't usually solicit customers through phone calls or unsolicited emails.

2. Check the lender's credentials: Before working with a mortgage lender, check their credentials with the Financial Services Commission of Ontario (FSCO) or the Canadian Mortgage and Housing Corporation (CMHC). If a lender is not registered, it is likely a scam.

3. Don't pay upfront fees: Legitimate lenders do not require upfront fees for processing a loan application. If a lender asks for money upfront, it's a red flag that they may be a scammer.

4. Get everything in writing: All the terms and conditions of your loan should be in writing. This includes the interest rate, the payment schedule, and the penalties for late payments. Make sure you understand all the terms and conditions before signing anything.

5. Use a licensed real estate agent: If you're buying a property, consider using a licensed real estate agent. They can help you navigate the complex process of buying a home and can spot any potential scams.

6. Be careful with wire transfers: Be cautious if a lender asks you to wire funds, as these transfers are often irreversible. Consider using a escrow service instead.

7. Know your rights: Under Ontario law, you have the right to cancel a mortgage agreement within 10 days of signing it. If you suspect you have been scammed, you should cancel the agreement immediately.

8. Report scams to authorities: If you suspect you have been a victim of a mortgage scam, report it to the police and to the Ontario Real Estate Association (OREA). You can also report it to the Canadian Anti-Fraud Centre or the Financial Consumer Agency of Canada.

In conclusion, being informed and vigilant can help you avoid falling prey to mortgage scams in 2023. Always do your due diligence when working with a lender and if something seems too good to be true, it probably is.