Did you know that March is Fraud Awareness Month?

We’re here to shed some light on the importance of protecting yourself and your finances from potential scams to secure your financial stability. Recognizing common mortgage fraud schemes and employing protective measures can significantly mitigate risks.

The most common mortgage fraud often involves inflating a property's value through a series of transactions orchestrated by criminals in collaboration with accomplices. Subsequently, a mortgage is secured based on the artificially inflated price. Here are some red flags to watch out for:

• Offers of money in exchange for using your name and credit details to secure a mortgage.
• Encouragement to provide false information on a mortgage application.
• Requests to leave crucial sections of the mortgage application blank.
• Discouragement from inspecting the property before purchase.
• Undisclosed rebates from sellers or developers during the closing process.

Another fraud to be wary of is title fraud, akin to identity theft, often detected when mortgages unexpectedly default. Fraudsters assume your identity, transferring property ownership to themselves, securing new mortgages, and absconding with the funds. However, several precautions can safeguard against such fraudulent activities:

• Personally inspect the property before purchase.
• Compare property listings in the vicinity to gauge the reasonableness of the asking price.
• Ensure your representative is a licensed real estate agent.
• Exercise caution with realtors or mortgage professionals who may have vested interests.
• Request a copy of the land title or conduct a historical title search.
• Incorporate provisions for property appraisal and home inspection in the purchase agreement.
• Demand documentation for recent renovations.
• Ensure your deposits are held securely in trust.
• Consider purchasing title insurance for added protection.

Remember, proactive vigilance is paramount in safeguarding yourself and your mortgage from potential fraud. Prompt action and reporting suspicious activities to relevant authorities can mitigate risks effectively.

Additionally, understanding your credit score is vital for homeownership. Your credit score significantly influences mortgage qualification and terms. Aim for a score of at least 680, reflecting responsible financial habits such as timely bill payments, managing debt levels, maintaining a healthy credit mix, and limiting credit applications.

To improve your credit score:

1. Pay bills in full and on time.
2. Prioritize debt repayment, starting with smaller balances.
3. Maintain credit utilization below 70% of available credit.
4. Limit credit and loan applications to avoid negative impacts on your score.

For assistance regarding your credit score, feel free to reach out for guidance.

The economic landscape, as noted by the Bank of Canada, is focused on curbing inflation. Despite recent declines in inflation due to various factors like energy prices and consumer goods, shelter costs remain a significant contributor to inflationary pressures.

Housing starts in Canada are insufficient to meet growing demand, exacerbated by zoning restrictions, rising construction costs, and labor shortages. Despite government efforts, the pace of immigration continues to strain housing supply, leading to upward pressure on rents.

The Bank of Canada acknowledges these challenges and anticipates cutting interest rates to stimulate economic activity. As such, homeowners should anticipate higher mortgage payments upon renewal, prompting potential rate cuts starting mid-year to alleviate financial burdens.

With housing activity bottoming out, home prices are anticipated to rise, especially in major metropolitan areas like the GVA and GTA. The central bank's anticipated rate cuts aim to mitigate economic slowdowns and support housing market stability.

Source: https://ised-isde.canada.ca/site/competition-bureau-canada/en/fraud-and-scams/fraud-prevention-month