What Information is Typically Misrepresented in Mortgage Fraud

Mortgage fraud involves the deliberate misrepresentation of information to secure mortgage financing under false pretenses. Whether the fraud is committed by borrowers, real estate professionals, or third parties, it can result in serious civil and criminal consequences. Now more than ever, mortgage fraud is becoming more common as housing prices increase and access to lending becomes more difficult. Many individuals become caught up in mortgage fraud under the advice of other professionals or businesses. Alternatively, others who are charged with fraud may not realize that they are committing a serious offence. If you've found yourself involved with mortgage fraud, contact an experienced fraud lawyer like Robert Karrass at Karrass Law. As experienced criminal defence and civil litigation lawyers in Toronto, our team has the expertise and skill to defend you. 

Here are some of the most commonly falsified pieces of information that lead to mortgage fraud charges in Ontario. If you've found yourself charged with mortgage fraud, contact Karrass Law for a complimentary lawyer consultation online or in person near you. 

Income and Employment Details

Falsifying income is one of the most common forms of mortgage fraud. This includes inflating annual income, creating fake pay stubs, or providing letters of employment from fictitious companies. In some cases, individuals may pose as self-employed and submit fabricated business documents to prove eligibility for a mortgage.

Lenders rely heavily on income information to assess your ability to repay the mortgage. Misrepresenting this data can lead to loan approval under false terms and may trigger civil lawsuits or even criminal charges if the misrepresentation is discovered.

A fraud lawyer at Karrass Law can help assess whether misstatements were intentional or the result of a misunderstanding or third-party error, which can make a significant difference in both civil and criminal proceedings. 

Source of Your Down Payment

Another key area of misrepresentation is the source of the down payment. Lenders are required to verify that funds used for a down payment originate from legitimate sources, such as personal savings or gifted funds from a family member, often with written confirmation.

Borrowers may attempt to hide the true origin of their down payment if the money came from a loan, business transaction, or unreported income. This misrepresentation undermines a lender's risk assessment and may constitute grounds for legal action, particularly if the mortgage defaults.

Many people are unaware that even well-meaning omissions, such as forgetting to disclose a private loan, can still expose them to legal scrutiny. To find out where you stand legally and to get on the best path forward after an omission on your mortgage application, book a lawyer consultation with our expert fraud lawyers near you at Karrass Law.

Property Use or Occupancy Intentions

Misleading a lender with inaccurate information about how a property will be used is another frequent issue. A borrower may claim they intend to live in the home as their primary residence to qualify for better mortgage terms or even housing rebates when, in fact, the property is going to be used for rental income or resale.

This distinction affects not just interest rates but also loan insurance requirements. Misrepresenting occupancy plans can result in foreclosure, legal claims from the lender, and reputational damage for everyone involved in the transaction.

If you're dealing with accusations related to property use, a civil litigation lawyer at Karrass Law can help you understand your exposure and respond effectively to any formal claims.

Identity or Credit Profile

In more serious fraud cases, identity theft or credit history manipulation may be involved. This could include using someone else's information to apply for a mortgage or altering credit reports to improve the chances of loan approval. These forms of fraud often lead to both criminal charges and civil lawsuits, in which case you should book a consultation with the legal team at Karrass Law immediately.

A lawyer consultation with our experienced team is essential in these situations, particularly if you've unknowingly been implicated in a broader scheme or if your identity was used without consent. Your legal team can help gather evidence, engage with lenders, and defend your position in court.

Fight Mortgage Fraud Charges with Legal Expertise from Karrass Law 

From application to closing, mortgage fraud can occur at any point during the lending process and can involve a wide range of misrepresented information. Whether it's inflated income, fake documentation, or false occupancy declarations, the legal consequences can be significant.

If you've been accused of fraud or need to take action against someone who misled you during a mortgage transaction, working with a fraud lawyer or civil litigation lawyer at Karrass Law is your best line of defence. A thorough lawyer consultation with our team will provide you with a clearer picture of your options and next steps. At Karrass Law, we don't pass judgment; we spend our time and devote our resources to building strong defences legally and generating the best possible outcome for your situation. 

Contact us today to get started.