One of the most frequent types of mortgage fraud involves a fraudster acquiring a property and artificially inflating its value through a series of sales and resales. They then secure a mortgage based on the inflated price, leaving lenders and buyers at risk.

Red Flags to Watch For

Be cautious if you encounter any of the following:

• Someone offers you money to use your name and credit to obtain a mortgage
• You’re encouraged to provide false information on a mortgage application
• You’re asked to leave signature lines or other sections of your mortgage application blank
• A seller or investment advisor discourages you from inspecting the property before purchase
• The seller or developer offers a rebate on closing that isn’t disclosed to your lender

Title Fraud: A Costly Scam

Another major concern is title fraud, which is a form of identity theft. This occurs when a fraudster, using false identification, forges documents to transfer your property into their name. They then take out a new mortgage on your home, collect the funds, and disappear—leaving you to deal with the consequences when your lender starts foreclosure proceedings.

How to Protect Yourself from Title Fraud

• Always visit the property you’re purchasing in person.
• Compare local listings to ensure the asking price is reasonable.
• Work with a licensed real estate agent.
• Be cautious of realtors or mortgage professionals with a financial stake in the deal.
• Request a copy of the land title or conduct a historical title search.
• Include a professional appraisal in the offer to purchase.
• Require a home inspection to check for hidden issues.
• Ask for receipts for recent renovations to verify legitimacy.
• Ensure your deposit is held in trust for added security.
• Consider title insurance—the best time to get it is before fraud occurs, not after.

Stay Vigilant and Take Action

Fraud can have devastating financial consequences, but staying proactive and informed is your best defense. If you suspect fraudulent activity, act quickly—report it to the authorities and take steps to protect your assets.

Knowledge is power, and by staying alert, you can keep your mortgage and finances secure.

Monitoring your credit report can also help stay ahead of any fraud activity pertaining to identity theft!

The Bank of Canada will maintain its current monetary policy stance, carefully balancing interest rates to manage inflation while supporting economic activity. The housing market remains a key area of focus, with efforts to address affordability and supply constraints continuing to be critical. Immigration is slated to slow this year, particularly for non-permanent residents, which will ease the housing shortage. Rents have fallen sharply in recent months.

Rising costs, labour shortages, and potential import tariffs on building materials could hinder construction activity.

Tariff threats are real and unnerving. Exports account for roughly a third of Canadian economic activity. Canada sends 75% of its exports to the US,   led by energy, automobiles, and metals. Threatened attacks on these trade flows might initially spill into higher prices. Still, the primary impact would be to slow economic activity and increase unemployment, already at 6.6%, up from a cycle low of 4.8% in July 2022. In contrast, the US jobless rate is a mere 4.0% and GDP growth is a lot stronger than in Canada despite double the central bank rate cuts than south of the border.

In the event of a trade war, interest rates are more likely to fall as the BoC attempts to backstop the economy. This would decrease mortgage rates, with floating rates falling more than fixed-rate loans. About 1.2 million mortgages will renew this year, most of them at a higher rate, said real estate company Royal LePage in a report out this morning.

Almost 30% of those homeowners said they would choose a variable rate on renewal, up from 24% now on a floating rate. Sixty-six percent said they would renew on a fixed-rate loan, down from 75% now locked in.

Of those who expect their monthly mortgage payment to rise upon renewal this year, 81% said the increase would put a financial strain on their household.

There remains a good chance that Canada could avert a trade war. We’ve already taken action to tighten our border. The US could not easily replace the oil, hydroelectricity power, autos or aluminum it purchases from Canada. We are the largest export market for US products. Excluding oil exports, the US has a trade surplus with Canada. Revisions to the US, Canada, and Mexico trade deal, slated for next year, could be accelerated. The US has much bigger fish to fry than trade concerns with Canada.

On balance, interest rates are likely to fall further. Government actions to improve housing affordability and pent-up housing demand bode well for a housing revival this year. Canadian inflation is under control at about 2%, boosting the chances of additional rate cuts this year.