STOP MORTGAGE FRAUD
STOP MORTGAGE FRAUD
Why this petition matters
This petition is to mandate the banks to obtain T4 directly from the employer and Notice of Assessment directly from CRA.
Also, do a random verification/audit of mortgage applications and verify these documents for their authenticity.
Because the absence of strict checking the income proof is one of the main reasons of the inflating property prices in Greater Toronto and Vancouver areas.
A person with a very decent income in Toronto (top 10%), say $102,000 cannot afford to buy a small townhouse house in GTA, which goes for about $800,000. And this is not because of interest rates. Even when interest rates were low, he would not qualify. But if he commits a mortgage fraud, he can magically afford it. This is extremely unfair and promoted corrupt practices.
Mortgage fraud is the deliberate misrepresentation of information to obtain mortgage financing that would not have been granted if the truth had been known.
Borrowers who misrepresent information and straw buyers who allow a property to be purchased in their name are committing mortgage fraud and will be liable for any financial shortfall in the event of default. They may also be held criminally responsible for their misrepresentation.
How would they do that ?
They can forge fake pay slips & letter of employment, lie about length of employment, hiding debts, lying about purpose of property. But all these cannot be easily verified.
What CAN be verified are the documents that are issued by organizations and government agencies. Namely:
- T4 slip - a document that summarizes all of the money paid by an employer to an employee during a calendar year.
- Notice of Assessment - an evaluation of your tax return that the Canada Revenue Agency sends you every year after you file your tax return.
Income Percentile Calculator by Province for Canada Including 28 Income Statistics – 2022 Data
Financial Services Regulatory Authority of Ontario (FSRA)
Mortgage fraud - CHMC