Mortgage fraud could rise with tighter lending rules, warns broker

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May 18, 2021 – Cases of mortgage fraud are likely to rise as new rules tighten borrowing requirements in Canada, says a mortgage broker.

New rules from the Office of the Superintendent of Financial Institutions raising the qualifying rate from 4.79 per cent to 5.25 per cent for borrowers with more than 20 per cent down payments could lead to increased fraud for shelter across Canada, including in Calgary, says Leah Zlatkin, expert and principal broker at Brite Mortgage.

“The change will not be a big problem for buyers, unless it’s a mortgage over $1 million, which is uninsurable.”

Yet some homeowners may be tempted to “fudge numbers” if refinancing from a new lender. Calgary Herald reports. | READ MORE