A survey found that 78% of respondents agreed mortgage fraud creates an unfair playing field, while 64% said it inflates housing prices.
A new national survey has revealed that a vast majority of Canadians believe mortgage fraud is undermining trust in the housing market and driving up costs for honest buyers.
The online survey, conducted by Pollara Strategic Insights for Mortgage Professionals Canada (MPC) and the Mortgage and Title Insurance Industry Association of Canada (MTIIAC), found that 78% of respondents agreed mortgage fraud creates an unfair playing field, while 64% said it inflates housing prices. The survey gathered insights among 2,022 Canadian adults between July 21 and July 30, 2025.
“Mortgage fraud not only undermines trust, it drives up housing costs for everyone,” said Lauren van den Berg, President and CEO of MPC.
“Income verification through the CRA is a practical solution that will strengthen trust in the housing market and help ensure everyone plays by the same rules. As an industry, we are committed to working with the government to give Canadians the confidence that their mortgage process is secure and equitable.”
Regional variation and next steps
The survey found regional differences, with 80% of Ontarians most concerned about mortgage fraud’s impact on fair access to housing. Rising interest rates and affordability challenges have seen mounting cost-of-living struggles for many Ontario homebuyers and owners in recent years.
Meanwhile, mortgage fraud rates fell from 0.46% in Q4 2023 to 0.19% in Q4 2024, marking a sharp year-over-year decline, according to Equifax Canada’s Q4 2024 report. However, fraudulent financial documents, including falsified bank statements and down payment information, remain a major issue, accounting for more than 90% of mortgage fraud cases.
Support grows for CRA income verification tool
The survey highlighted that 72% of Canadians support allowing lenders and mortgage brokers to confirm income information directly with the Canada Revenue Agency (CRA), a view shared across political lines. Nearly two-thirds (65%) believe the CRA should play a role in preventing mortgage fraud. Concern was highest among those planning to buy within the next five years, with 65% expressing worry about fraud.
Rob Budhwa, President and Board Chair of MTIIAC, said, “Canadians are clearly concerned about the growing problem of mortgage fraud and want action taken to fight back. MTIIAC is committed to fighting mortgage fraud and is calling on the government to make the proposed income verification system a reality. It is a necessary tool to protect against fraud, which continues to undermine the Canadian mortgage industry and drive up housing costs.”
Currently, verifying income requires multiple steps – reviewing notices of assessment, income slips (such as T4s), and contacting employers. While effective, the process is time-consuming and susceptible to fraud. Industry participants said a centralized verification tool could reduce that risk and simplify the workflow for approvals.
The push for a CRA-enabled tool is not new. Budget 2024 included a commitment to consult with the mortgage industry on developing such a tool. In fall 2024, the CRA conducted consultations with industry professionals, and by July 2025, findings confirmed strong support for a real-time, secure digital solution. However, as of September 2025, there has been no update on the tool’s progress.
