Most mortgage transactions in Ottawa go smoothly, but fraud does happen, and the schemes have gotten more sophisticated. Here's what to actually watch for, and the handful of habits that protect you against nearly all of it.
Title Fraud
Someone forges documents to fraudulently transfer or place a mortgage against your home, sometimes without you knowing until a lender or buyer contacts you. It's rare, but it disproportionately targets homes owned outright (no existing mortgage lender monitoring the title) and homes owned by people who don't check on the property often, such as landlords with rental properties or seasonal residents.
Protection: title insurance, a one-time low-cost policy typically arranged at closing, covers you against title fraud losses and is genuinely one of the best-value protections available. If you own a property outright, ask whether you already have a policy from a past purchase, or whether it's worth obtaining one now.
Wire Fraud and Closing Scams
This is the fastest-growing scam in real estate. A fraudster intercepts email communication between you, your lawyer, and your realtor, then sends a convincing fake email with "updated" wire instructions right before your deposit or closing funds are due. Buyers have lost entire down payments this way.
Protection: never send money based on wire instructions received by email alone. Call your lawyer's office directly, using a phone number you already had or looked up independently, not one provided in the email, and verbally confirm the instructions before sending anything.
Income and Document Fraud
Occasionally a borrower, sometimes encouraged by a shady third party, will falsify pay stubs, employment letters, or bank statements to qualify for more than they actually can afford. This is mortgage fraud, full stop, and it puts your home and your legal standing at serious risk if discovered, which lenders and insurers actively audit for.
Protection: work with a licensed mortgage agent who submits accurate documentation, and be wary of anyone, including a friend or relative, suggesting you "adjust" numbers to qualify.
Predatory Private Lending
Legitimate private lenders serve a real purpose for borrowers who don't fit conventional lending. Predatory ones charge excessive fees, bury unfavourable terms in fine print, or pressure borrowers into signing without proper legal advice.
Protection: always get independent legal advice before signing a private mortgage, confirm the lender is registered, and verify your mortgage agent's license on the FSRA public register.
A Few Habits That Cover Almost Everything
- Never sign a blank or partially completed document
- Verify wire instructions by phone, using an independently sourced number, every single time
- Use a real estate lawyer, not just whoever is cheapest or fastest
- Get title insurance, especially on a home owned outright
- Check your credit report periodically for accounts or inquiries you don't recognize
Working With a Licensed Agent Matters
Sean Rankin is licensed and regulated by FSRA (Mortgage Agent Level 2, License #M20000492), through Smart Debt Mortgages, a Network Partner of Mortgage Intelligence. You can verify any mortgage professional's license status directly through FSRA before working with them, and you should.
Questions About a Deal That Feels Off?
If something about a mortgage offer, private loan, or closing instruction feels off, ask before you sign. Talk to Sean, no obligation.