How Bad Is Mortgage Fraud In Canada?

Three main types of mortgage fraud are identified: fraud for shelter (everyday people misrepresenting finances to get homes), fraud for profit (industry insiders manipulating the system), and fraud for money laundering (criminals using real estate to clean illicit funds).

A "Toronto model" of fraud has emerged where people claim fake high-paying jobs in China to secure mortgages, with bank employees sometimes colluding with scam centers to provide false documentation.

The problem is exacerbated by Canada's housing affordability crisis and strict lending rules, which push some desperate buyers toward fraudulent practices.