For most Canadians, their home is their largest financial investment — and increasingly, it has become a target for fraudsters. As financial crime tactics grow more sophisticated, mortgage and real estate fraud continues to evolve, putting homeowners at risk in ways that aren’t always obvious. Fraud Prevention Month is an important reminder to stay informed, recognize warning signs early, and take simple steps to protect your home and financial well-being.
Common Types of Mortgage and Real Estate Fraud in Canada
Title Fraud
Title fraud occurs when criminals use stolen or forged identification to fraudulently transfer ownership of a property. The fraudster may then register a new mortgage or attempt to sell the property without the homeowner’s knowledge, often using fake legal documents or impersonating professionals.
Common Targets for Title Fraud
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Mortgage-Free Homeowners 
Mortgage-Free Homeowners With no lender needed to verify transactions, mortgage-free homes are an easier target for fraudsters. |
Seniors 
Seniors Seniors may not be as technologically savvy and are often mortgage-free. |
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Newcomers to Canada 
Newcomers to Canada Unfamiliarity with the Canadian real estate process, as well as potential language barriers, makes this group susceptible to fraud. |
Unoccupied Properties 
Unoccupied Properties Second homes, vacation homes, and unoccupied rentals may be targeted if they are intermittently monitored. |
Mortgage Fraud
Mortgage fraud involves false or misleading information being used to obtain financing.
Misrepresentation of income, employment, or assets: Inflating income or being dishonest about employment is a tactic fraudsters use to obtain a loan or a higher loan value for a property they wouldn’t otherwise be approved for. Withholding information, like not disclosing other mortgages or debts, is another aspect of mortgage fraud.
Falsified or altered documents: This involves creating false financial statements or using artificial intelligence programs to alter documents in order for an applicant to be approved for terms they wouldn’t normally qualify for.
Straw buyer arrangements: In this scenario, an individual with poor credit or financial health would convince another person with more favourable credit or financial history to apply for a mortgage on their behalf, typically for some sort of compensation or benefit to both parties.
Manipulated property valuations: By artificially inflating a property’s value, fraudsters can obtain a higher mortgage exceeding the property’s actual value.
Other Real Estate-Related Scams
Canadian homeowners may also encounter foreclosure or debt-relief scams, equity-skimming schemes, and wire transfer redirection fraud where criminals impersonate lawyers or lenders.
🚩 Common Red Flags to Watch For
✅ Pressure to act urgently
✅ Requests to change payment instructions by email
✅ Guarantees to “save” your home for upfront fees
✅ Unexpected legal notices about your property
✅ Documents that don’t match verbal explanations
Stay Informed, Stay Safe
Protect Your Personal Information
Safeguard sensitive information and share it only with trusted professionals.
Verify Before You Trust
Always confirm wire instructions by phone and work with licensed mortgage and real estate professionals.
Monitor and Act Early
Review credit reports and property records regularly. Both Equifax and TransUnion provide free credit reports.
Title Insurance
While title insurance won’t prevent fraud, it may help cover legal costs and losses related to ownership disputes, fraud, or clerical errors.
What to Do If You Suspect Fraud
Title Insurance
- Contact your lender and financial institutions immediately
- Report to local law enforcement
- Place fraud alerts with credit bureaus
- Report to the Canadian Anti-Fraud Centre
MCAP’s Commitment to Canadian Homeowners
At MCAP, protecting homeowners is a core priority. Our teams use layered identity verification, document review, and ongoing monitoring practices designed to help detect suspicious activity and safeguard mortgage transactions. We also work closely with industry partners to support safe and secure home financing.
If something doesn’t feel right, trust your instincts and reach out.
Anti-Fraud Resources
Stay informed and protect yourself from mortgage and real estate fraud by accessing these trusted Canadian resources:
Real Estate Council of Alberta (RECA)
Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ)
Real Estate Council of Ontario (RECO)
BC Financial Services Authority (BCFSA)
Financial and Consumer Affairs Authority of Saskatchewan (FCAA) – Consumer Protection
Consumer Protection Office – Manitoba
Financial and Consumer Services Commission (FCNB) – New Brunswick
Nova Scotia Real Estate Commission – Consumer Advisories
Consumer Services – Prince Edward Island
Service NL – Consumer Affairs (Newfoundland & Labrador)
Consumer Protection Nova Scotia (Access Nova Scotia)
