BEWARE OF MORTGAGE & TITLE FRAUD

With personal data widely exposed online, identity theft and real estate scams are rising fast. Homeowners must stay vigilant to protect their biggest asset: their home.

Here’s what every homeowner needs to understand to stay protected 👇

1️⃣ What mortgage fraud looks like

Mortgage fraud occurs when false information is used to obtain financing.

✔️ falsified income or documents

✔️ inflated property values

✔️ deceptive resale schemes

It’s a serious criminal offence under the Criminal Code of Canada.

Common red flags

✔️ someone offers you money to use your name or credit

✔️ you’re told to include false details on an application

✔️ you’re asked to sign blank sections of paperwork

✔️ seller discourages you from viewing the property

✔️ secret cash-back deals not disclosed to the lender

2️⃣ What title fraud is — and why it’s worse

Title fraud happens when criminals steal your identity, transfer your home’s title, discharge your mortgage, and secure a new loan under your name.

✔️ often undetected until foreclosure notices arrive

✔️ homeowner suffers the financial damage

✔️ lender assumes YOU defaulted

Unlike mortgage fraud, you never meet the criminal — they use your identity behind the scenes.

How identity thieves steal information

✔️ stolen mail

✔️ phishing emails

✔️ data breaches

✔️ hacking

✔️ dumpster diving

3️⃣ How to protect yourself from title fraud

✔️ keep personal info private online and by phone

✔️ don’t carry your SIN card

✔️ check credit reports regularly (Equifax & TransUnion)

✔️ monitor bank and credit statements for unknown charges

✔️ shred sensitive documents

✔️ follow up if bills stop arriving

✔️ report unrequested credit cards

✔️ contact your lender early if facing financial stress

✔️ consider title insurance for added protection

4️⃣ Protect yourself when buying or refinancing

✔️ work with licensed real estate professionals

✔️ compare listings for realistic pricing

✔️ ALWAYS see the property in person

✔️ avoid agents with financial conflicts

✔️ request land title history

✔️ include inspection & appraisal clauses

✔️ ensure deposits are held “in trust” properly

✔️ verify renovation permits and receipts

✔️ review mortgage commitment and cost-of-borrowing statements

✔️ ask questions if anything seems off

✔️ consider using your own independent lawyer

5️⃣ Understanding “Straw Buyer” schemes

A straw buyer is someone paid to use their good credit to obtain a mortgage for someone who doesn’t qualify.

✔️ often paired with other criminal activity

✔️ may involve grow ops or drug labs

✔️ the straw buyer becomes legally and financially responsible

These schemes are illegal and extremely risky.

💬 Final Thought

Mortgage and title fraud are becoming more sophisticated — but so are the tools and protections available to homeowners. Staying alert, verifying professionals, and securing proper insurance can prevent devastating financial loss.

If you’d like a personalized fraud-prevention review for your home or upcoming purchase, The Frontline Mortgage Group can outline the safest steps to protect your property and identity.