{"id":123793,"date":"2021-06-29T09:00:28","date_gmt":"2021-06-29T16:00:28","guid":{"rendered":"\/blogs\/?p=123793"},"modified":"2024-02-20T20:17:43","modified_gmt":"2024-02-21T04:17:43","slug":"3-canadian-real-estate-scams-you-should-know-about","status":"publish","type":"post","link":"https:\/\/www.mcafee.com\/blogs\/privacy-identity-protection\/3-canadian-real-estate-scams-you-should-know-about\/","title":{"rendered":"3 Canadian Real Estate Scams You Should Know About"},"content":{"rendered":"

Across the country, Canadians are moving out of cities in droves to stretch their legs and call a larger plot of land home. For those embracing the work-from-home lifestyle,\u00a0they no longer need to live near metro-area offices in\u00a0expensive\u00a0shoebox apartments and condos.\u00a0According to\u00a0<\/span>Statistics Canada<\/span><\/a>,\u00a050,000 people moved out of Toronto and nearly 25,000 people migrated from Montr\u00e9al to suburban areas from July 2019 to July 2020.<\/span>\u00a0<\/span><\/p>\n

The increased demand for suburban housing is making the Canadian\u00a0real estate\u00a0market a mad dash for limited supply. Additionally, some families who are out of work are struggling to keep their homes\u00a0and are resorting to unsafe measures to keep\u00a0a\u00a0roof over their heads.<\/span>\u00a0<\/span><\/p>\n

Leave it to scammers and identity thieves to pounce\u00a0on a vulnerable situation.\u00a0Scammers and identity thieves are\u00a0increasingly\u00a0taking advantage of unsuspecting homeowners, and in some cases,\u00a0selling homes without the rightful owners\u00a0even realizing it.<\/span>\u00a0<\/span><\/p>\n

Be on the lookout for these three Canadian real estate scams.<\/span>\u00a0<\/span><\/p>\n

1. Loan Fraud<\/span><\/b>\u00a0<\/span><\/h2>\n

Foreclosure occurs when a homeowner can no longer afford to pay their mortgage, so the lending institution takes over homeownership with the right to sell it. When homeowners are facing the prospect of having to move out, they may seek dubious loans to help them bridge the gap. Loan fraud is when a scammer pretends to extend a gracious loan. In exchange for the loan, the scammer may ask for the title of the home. With the title in hand, the thief may stop sending loan payments to the homeowner and instead resell or remortgage the property.\u00a0<\/span>\u00a0<\/span><\/p>\n

Not being able to make mortgage payments is a desperate situation, which causes struggling homeowners to make dramatic decisions. Before agreeing to any type of loan, homeowners must ask themselves if the terms of the loan are too good to be true. In cases of fake loans, they often advertise an incredibly low-interest rate. It is best to trust your financial matters to accredited institutions.<\/span><\/p>\n

2. Title Fraud<\/span><\/b><\/h2>\n

Title fraud is when someone steals the title of the home, usually by impersonating the homeowner. Once they have\u00a0the title,\u00a0the\u00a0thief may\u00a0attempt to\u00a0sell the home or apply for a mortgage against it.\u00a0In March 2021,\u00a0the\u00a0<\/span>Times Colonist<\/span><\/a>\u00a0reported\u00a0that\u00a0a thief impersonated a British Columbian homeowner\u00a0in order\u00a0to transfer the home\u2019s title to someone else\u2019s name. Then, the thief tried to sell the home\u00a0behind the rightful\u00a0homeowner\u2019s\u00a0back.\u00a0It was only when\u00a0a\u00a0neighbor\u00a0alerted\u00a0the real homeowner\u00a0about\u00a0the for-sale sign\u00a0that they realized that their home could\u00a0have\u00a0been sold without their permission.<\/span>\u00a0<\/span><\/p>\n

The best way to defend against title fraud is to keep\u00a0your personal information as private as possible. Title fraud is closely related to\u00a0<\/span>identity theft<\/span><\/a>,\u00a0and\u00a0fraudsters may gain access to your personal information through phishing methods.\u00a0<\/span>Phishing<\/span><\/a>\u00a0is a tactic where\u00a0cybercriminals trick people\u00a0into giving\u00a0up personal details, including\u00a0full names, birthdays,\u00a0and financial information.\u00a0<\/span>Statistics Canada<\/span><\/a>\u00a0calculates that 34% of Canadians have experienced\u00a0a phishing attempt\u00a0since the beginning of the pandemic. This statistic emphasizes the importance of constant vigilance concerning your most sensitive personal information.<\/span>\u00a0<\/span><\/p>\n

3. Mortgage Fraud\u00a0<\/span><\/b><\/h2>\n

Mortgage fraud is\u00a0a term that can apply to\u00a0untruthful lenders\u00a0who\u00a0attempt to swindle cash from unsuspecting buyers\u00a0or pitch mortgage\u00a0terms that fall outside of the buyer\u2019s means.\u00a0The\u00a0<\/span>Financial Services Commission of Ontario<\/span><\/a>\u00a0lists<\/span>\u00a0several warning signs of mortgage fraud.\u00a0For example,\u00a0lenders\u00a0who do not have your best interests in mind\u00a0may ask for cash fees and upfront payments.<\/span>\u00a0<\/span><\/p>\n

Again, it is best to\u00a0only\u00a0trust accredited financial institutions with your mortgages and loans.\u00a0Research the institution before signing any contract.\u00a0If the mortgage terms are too good to be true, it probably is. There are several online mortgage calculators that can give you an idea of the type of mortgage you can afford. Before\u00a0entering any talks with a lender, conduct some research beforehand so you can spot unreasonable terms.\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n

Also, an unscrupulous lender may try to hurry you along but also take a long time responding to your calls and emails.\u00a0If you feel pressured or unsure at any point, remember that there are plenty of fish in the sea. Ask your friends or family for lender recommendations to make sure that you are\u00a0not tricked into mortgage fraud, the consequences of which could follow you for years.<\/span>\u00a0<\/span><\/p>\n

How to Protect Your Real Estate Investments<\/span><\/b><\/h2>\n