The cost of shelter in Canada has been skyrocketing for the past few years. So much so that analysts and economists have been scratching their heads at how it’s possible that so many Canadians can afford homes at these prices. The answer might be simple according to Scott Nazareth, one of Canada’s top mortgage brokers – fraud.
Scott, who is also the founder of Loanerr, estimates that mortgage fraud is much higher than people would think. “Many people may not consider ‘fraud’ the word to use for a ‘white lie’ for omissions of information to their broker or bank” he explained. “[but] they may be surprised to note that any wrong information on their mortgage application is considered fraud.”
No, these aren’t super villain-style gangsters that dabble in mortgage fraud when they aren’t trying to kill Spiderman. Many are regular Canadians scrambling to get into the real estate rush, but can’t afford it by regular standards. In fact, a lot are families trying to buy a home before prices become so high it’s no longer a reality. Scott estimates it’s “as high as 20%, or 1 in 5 people.” He explained some people may “strategically try to withhold information or inflate their income through various means.” (more...)