It's very unfortunate that this is so prevalent in our real estate industry. This hurts the market in a couple of ways and artificially inflating house prices to a point that many can't afford. If clients don't make that money that is presented, the buyer can lose their deposit and more if fraud is found. Lastly the buyers are being charged fees to create fraud and risking being prosecuted along with anyone else is involved ( mortgage agent, real estate agent. etc.)
I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!
@@Believer292 Very true! I've been able to scale from $50K to $189k in this red season because my Financial Advisor figured out Defensive strategies which help portfolios be less vulnerable to market downturns.
@@hunter-bourke21 Sure, the financial advisor that guides me is “Julia Ann Finnicum” and she's renowned and has quite a following. So it shouldn't be a hassle finding her. Just look her up.
@@james.atkins88 I just googled her name and her website came up right away. It looks interesting so far. I'm going to book a call with her and let you know how it goes. Thanks
I love how the government agent is shown evidence of fraud from a very simple sting and she acts so surprised, and says "we have to clean it up" wtf have you been doing and why haven't you been running these stings?
They all are in on it … Every thing seems to be to line someone else’s pockets… from the president to the Canadian Gov. To lenders, banks.. you name it theres a scam but we have to fight the “war on drogs” 😂 they distract the common people with an opioid epidemic, and this supposed war that can’t be won when there really is a war to be had💯 it’s bait and switch with a little smoke and mirrors the governments supply the illegal substances to the streets and allow it to cross the border every single day.. and every once in a while, they “catch“ somebody so it doesn’t raise suspicion. They have been caught smuggling stuff in corpses of dead military personnel, and so many other ways it’s ridiculous. but this is all to distract away from the real white-collar crimes that are going on that make the rich richer and the poor poorer. Between traffic tickets, and this weird war on droogs they claim is going on it’s enough to keep people distracted, and away from the real criminals that are getting away with murder in a financial sense. all of the substances that they have scheduled actually have a medical benefit and were used as medicine at one time. MMJ was made illegal because it was threatening the paper industry as well as the alcohol industry. That was the only reason. cocaine is still used in medicine today and opiates are just another form of heroin but that’s where our focus should be according to everyone’s government, which absolutely isn’t the case. c0caine is still used in medicine today & 0piates are just another form of her0!n & that’s where our focus should be according to everyone’s government, which absolutely isn’t the case. People need to wake up and realize what’s truly going on but unfortunately the average reading level of let’s say the United States is seventh grade so we can’t expect more than 30-40% of the population to comprehend what is actually happening in the world let alone do something about it. The amount of people that are intelligent enough to put the puzzle pieces together is not enough to stop what is happening
As a mortgage professional of 14 years we have reported this behavior many times. We have called the RCMP , licensing bodies and OFSI (office of the superintendent of financial institutions) as well as the banks directly. No one ever got back to us, the agents conducting this form of practice are still succeeding and no action has ever come against them. Happy to CBC covering this topic but I have little faith it will go further. Buyer Beware!
These guys are doing God's work. Rent is higher than mortgage payments. Sometimes people with bad credit and a good job need a break. These guys are doing God's work. You are a narc
Mortgage brokers are licensed so they can lose their license if got caught. Bank mortgage specialists are employed and once got caught they will be just find employment in another bank. And there are many banks there.
It’s a Ponzi scheme where greed exists at every level, the buyers can choose to go with smaller more affordable but they too want to take the highest return so will gamble the highest.
@@ashk5488 all they have to do is match the income reported to that reported to CRA but then banks will now be under scrutiny and nobody would be happy about that.
The thing I hate about realtors and brokers is that they're supposed to act in your best interest and protect you from losing money but they are never held accountable. I think these professions should be more vulnerable to being sued.
At the end of the day, you can’t be preyed upon if you know elementary math. If you make $150k, it shouldn’t matter if you get approved. You should know if you can make the payment or not based on your budget.
As a realtor in Calgary I absolutely agree with you !! I have been selling real estate since 1996 and we need to weed out the crooks to gain more credibility to the ethical agents !! More accountability NEEDS to be done !!! 😡😡😡
Not hard when the bank knows you stumbled into their "sweet gig". They really should report that crap to whatever banking regulation authority certifies financial institutions in Canada.
No matter where we migrate, we make sure to corrupt that Country. We just cannot go of our Desi ways. Very unfortunate that we are trying to create a country the same as the nation we left from.
Living in Surrey, 90% of east Indian property owners are doing this. Then renting it out to build the portfolio and qualify for more mortgages. Our market has been inflated by this, now people born in BC cannot afford housing.
I would say 99% punjabis are doing this . Just walking around surrey , the “mansions “ you see are housing punjabis who live there and can’t even speak English . Very obvious of how the system is being abused . Now Canadians will never be able to afford a home .
Glad this investigation showed all country men were involved but some figured it out first. The risk comes from families and communities that won't be able to pay or afford these in the long term and hope they won't based on history.
10 years ago, I went to a realtor to find a house for 250k in toronto. He told me he could get me a house for 500k easy and dont worry about approvals since he could help. This has always been a thing...
I'm a mortgage agent, I see fakes monthly. Even get a call every now and then about making things work. It isn't just the south asian community, it's everywhere
This is an important comment that I wish they mentioned in the piece. Especially considering how reactive people are nowadays. Thank you for pointing it out.
It's common though in South Asian and Black communities. When black people are rejected for mortgages, they say it's racism - no, you weren't qualified. Then they get these homes through fraudulent means and can't keep them.
@@alexiatherealtor the foreclosure rate for Canada is the lowest in the world. Banks/B Lenders know this and this is why they turn a blind eye to it. Very rarely will you see anyone from an immigrant community foreclosing on a house. They will take up a 2nd job, lease their basements anything possible to maintain the payments.
Because of the insane interest rates it has slowed to a stop agents and mortgage brokers are doing whatever it takes to make a living and put food on the table
This is sickening. Because of the interest of a few people in the real estate industry, the economic security of Canadians is being threatened by junk mortgages.
You guys are awesome, you are doing something which Canadian government and law forces failed to do for decades. Please put these realtors, agents and home buyers in jail 😢
really? So it is ok if the banks are systematically blocking immigrants of having a property on the basis of lack of credit history? even though they make enough and by any projections, their income will keep on growing in the future. But since they are immigrants, they should not own better properties than native canadians right?
Buyers who were able to successfully close the deal with these types of hyped income and faked documents are and will always be silent but when it fails, the buyer feels deceived and come forward to put the agent in trouble, but they fail to understand that they are complicit in this fraudulent activity.
@@m.b5777 exactly they are doing everything possible to put the blame on the Realtor and his contact. Meanwhile the truth is they’re regretting their decision from February 2022.
doesn't change the fact that the agent actively aids and encourages. By the comments its almost as if agents were "unwilling victims". What a load. "Aw the poor victim agents".
I now understand how people buy expensive homes and investment properties . I always wondered who has the salaries to buy 2 million dollars homes. Some people own 5- 10 homes but not much income. Thats crazy. Is the government, regulators, police sleeping or they want these realtors, mortgage reps and banks to keep doing the fraud?
Destroying communities in record breaking time! Then lying to the public about the cause of the damages! Canada is under siege and you don't hear them talking to Canadians about that!!
Here's a concept, why not buy a house that's within your means!?! Why are people spending over a million dollars on a house. Don't know if it's the realtor or the buyer's own ignorance.
This is exactly what happened in 2007 & 8 in the us, unqualified folks were convinced to buy overpriced houses, it was a disaster for everyone. GREAT reporting, keep up the good work.
@@henrymalacho4837 almost, shes talking about how the housing bubble began, but it isnt the reason why it was a disaster for "everyone" aka the financial crisis. the subprime mortgages were sold with aaa mortgages as mortgage back securities that investment firms pushed to their clients. this is what caused banks to almost fail until the bailout which tanked the economy, which led to "a disaster for everyone".
@@missmarya747 only buyer is at risk, broker and realtor are out as soon as mortgage is funded, banks transfer the risk to CMHC, buyers risk loosing downpayment and credit for a long time.
The CRA could easily provide an online interface to check if a T4 is valid for a given SIN + income. But it won't, because to government is interested in ever increasing real estate prices.
This is something that has happened for generations for a particular race of people. Now all of a sudden it's shocking to hear that it's still happening. I'm not surprised at all.
All banks who employ brokers are involved in this, why would they need brokers when they have bankers doing the same thing in their branches, it is basically a data entry job paying huge commissions for being creative
We were told my our agent , when we submitted papers to bank directly for pre approval…agent actually said are you sure you will qualify? Or do you need help? We heard the details of the help…and we were shocked! Thank fully our conscious worked and we refused the offer…we sized down what we could get instead of a house we got a small condo to stay in the limit of our pre-approval. Thank you CBC for coming out with this. We could not literally try to buy any house due to this trend causing bidding wars.
@Sean Downey this is not anything like what was taking place in the US. The banks/mortgage companies were legally selling subprime mortgages. They were not checking people's income, they were just making money with mortgages. The mortgages started below prime and then the lenders could raise them to whatever interest rate they wanted.
I'm a realtor from Minnesota, USA and man.. any kind of fraud activities, you'll get in deep trouble. I can see this happening.. I was more shocked to see that there was evidence and the Canadian Realtor Association wouldn't do anything about it.
Being an Indian, I can tell you one thing with certainty! Every person in the Indian community knows at least 10 people who got homes via mortgage fraud. The real estate regulatory authorities are literally sleeping while the south asian realtors are robbing this country blind. This will be 2008 recession all over again. This is not about race but unfortunately the Indian community will at the end bring canada down to its knees while the greedy realtors and mortgage agents line up their pockets. May god save and bless this country now. Kudos to CBC to finally do something about it.
What is your source? I have a hard time believing every person in the Indian community knows 10 people who got homes period, let alone via mortgage fraud.
I had Indian tenants. Nice people but even as a landlord they played me a little. A scammer from India robbed my parents their retirement savings. I’m sorry, but I’m not surprised by what you’re saying. Yeah this country needs to do more to protect us.
At this rate let's let's just point the finger at every other minority. Who's to say that Indians and the Chinese must all be doing fraud... Fraud is happening in all demographics. I guess all hardworking Canadians of a different color may have done mortgage fraud. I guess there is no hard working Canadians after all..
It's not just Indian immigrants, I've heard the same from Koreans, Chinese, etc. Often this isn't to help people buy homes they could otherwise not afford (they can afford them), rather, it is to alter income to dodge taxes like the "Speculation and Vacancy Tax" in BC, where they would have to pay if they didn't earn their money here.
It's very unfortunate that this is so prevalent in our real estate industry. This hurts the market in a couple of ways. 1. Artificially inflating house prices to a point that many can't afford. 2. If clients don't make that money that is presented, the buyer can lose their deposit and more if fraud is found. 3. Buyers are being charged fees to create fraud and risking being prosecuted along with anyone else is involved ( mortgage agent, real estate agent, underwriter and etc.)
So what happened to the real state agents who were caught on the camera? I mean what’s the whole purpose of this investigation when these same people are working in the same industry. Is Canadian authority doing anything about it? Or they only going for small fishes?
Canadian regulators are either sleeping or are sleeping with these scums. The average Canadian salary is 50,000 a year, and average household expense is about 40k a year. To buy even a town house in Brampton you need a 20% down of at least 180k which means it will take an average Canadian 18 years to collect the downpayment Is our government not seeing this gap between the actual incomes and the selling prices of the houses. At the end even for a home owner like me I am impacted every other month with an increasing.monthly mortgage and I don't know if I will even be able to put food on my family's table, thinking of giving my child a good education seems to be dream now. Wake up regulators, wake up government, wake the hell up
@@Prabh892 what Regulators?? They are just highly paid Admin jobs ? How often do you hear of all kinds of misdoings at the banks, has been going on for over 30yrs and will go one unless the govt stops buying bank mortgage debts and stops employing brokers altogether. Brokers are nothing but data entry clerks, they collect data from buyer and input into the banks system, the only reason AI has not replaced them is because AI will not be “creative”, banks rely on the brokers to be “creative” otherwise the same job can be done by the banker sitting inside the branch.
I know a few mortgage brokers and pretty much every one of them does it and does it for a long time. This is how someone works for minimum wage able buy (Of course with over asking price) million dollar home . The only way to stop it is the CRA and/or Federal government must provide a way to verify the notice of assessment (NOA). RECO : A self regulating real estate MAFIA /Cartel. A self regulating body never works for the public . If the federal government facilitated and mandated the NOA verification for new mortgages and renewals , home prices in Canada would go back to the year 2000 price level . The level of fraud is way higher than this documentary portrays.
I am a licensed Realtor in the US (for 16 years) and I know HUNDREDS of Realtors and mortgage brokers and can count on ONE HAND the number who I even suspect might facilitate fraud like this. It is not nearly as common (at least not in the US) as they make it sound. SO yes, this is a terrible practice, but it's also disgusting how CBC is misrepresenting the industry by suggesting that 20% of professionals do this kind of thing routinely. It's just not so. Many of these folks will end up in JAIL for this...
Buyers are also responsible for this fraud. One of my realtor friend told one buyer to wait 3 months to build credit score and that buyer baught a house from another agent. So, buyers are like if you can't help me with mortgage, I will go with other realtor.
Even a broken clock is right twice a day ... doesn't mean I would want to own one. The CBC is broken, beyond repair and not worth $1.3 BILLION/yr to spew their leftist propaganda
they are just ten years late to the party here, that is my issue, they barely covered the BC elections, but ya this one is a banger and makes up for a bunch of their recent failures
I am extremely happy to see that people are actually weeding these scums out. My dad is a real estate agent in India and these scams were all over the place. He keeps asking me about the situation in Canada. When I told him about how the things are here, he told me to buy a house later but with every legal means necessary.
I used to work at FSRA, the so-called Ontario mortgage regulator. That organization is useless when it comes to preventing mortgage fraud by the agents it regulates. Call them yourself and see for yourself. I would suggest calling its CEO and he won't be able to do anything because they are clueless. Ontario needs to get rid of FSRA and RECO as regulators....they are not protecting the public interest at all.
The system has created all these loopholes. The industry gets shaken up, time passes, some agents get fined. To be honest, seeing these families getting screwed up is tough. Hope these crooked agents and mortgage brokers pay the price. The brokerage must be sued and held accountable.
Looks like a repeat from 2008 which was called real estate meat factories..or something to that effect. I agree with you 100% - it's the government system (judicial system included) that allows, through sweet deals and other corruptive measures, for the shady crooks' predatory actions.
Marketplace should make another video to follow up. It almost a year now , nothing happened. Where is the police? Why no one been charged? In US, mortgage fraud will face a mix 30 years jail.
This is just the tip of the iceberg... I've heard of similar scams in Calgary, Montreal and Vancouver. How greedy can you get? Did they not make enough millions from commissions during the housing sale boom from 2020 to 2023? This is despicable!
Yes, India is also one of the unhappiest countries in the world. You can see why - greed, lying, cheating, stealing, to get what they want. This leads to a country where no one pays taxes and the streets are a mess, the buildings are trash, and the poor are the only ones who have any morals, and they have no power because the thieves are in control. Don't let Canada be ruined by this.
The stress test was a joke. I know people who bought 3 houses on minimum wage. They are renting out 4 rooms to 8 students in each house. That is how they pay their mortgages. And they had no money down because downpayment came from private lenders who registered second mortgages after the bank registered the first ones. Now their homes have gone up over 40% and they are millionaires on paper.
They better kick out their tenants fast early in the school year and sell before their Trigger rates/points are hit and mortgage rates rise more and prices/values plummet even more. The longer they wait the faster the millions in paper evaporate faster than they went up in the first place
@@mickiiip1050 when home prices were rising private lenders had no problem lending people downpayment for 8-12% interest. The mortgage brokers arranged it and on paper made it look like it was a gift which came from a family member . Once the mortgage is approved the banks don't check of a second mortgage is registered against a property. So the broker would ask his lawyer buddy to register the 2nd mortgage after a week of the bank registering theirs. Everyone from lawyer to broker to bank employees get huge commissions Prices were rising fast so after 2 years the broker would refinance and pay off the 2nd mortgage. Of course he would get more commissions from refinancing
@@mickiiip1050 I don't really understand what you're asking, some buyers are going to private individuals to get a loan for the downpayment on the properties.
These realtors and bankers should be in jail. Throw some of these guys behind bars for 10-15 years and you’ll see the amount of fraud go way down. Instead the most we throw at them are suspensions of their cereal box licenses.
I sold my home and had all of my proceeds stolen the agent then filed a bankruptcy sent info to deceased person who had the same name in another state not notifying of bk court dates and walked away with $240,000 and my home i reported them and nothing was ever done
But the buyer will go to jail too, he is part of the fraud. At the end of the day his signature is on the paper and you can't claim they had no idea about the process when the broker is soo transparent.
Disgusting people. That's the reason why I'll still do my due diligence even if I hire realtors because I don't completely trust them even if they are professional and great at what they do. "Great at what they do" maybe means taking advantage to maximize how much they earn.
True, we are looking to buy home in near future and although our agent is a professional, she recently said something like you can get a specific amount (which we are looking for) in mortgage loan but the lender requires an offer so that they know are purchasing a particular property. In short, we are not getting pre-approved but we can get that rate once we have put the offer.. That's just asking for trouble, We are planning to hold off buying for now until we have some more savings. If you can't afford it don't buy it simple, don't make things harder for yourself. People who bought a house in February of this year are crying right now because they bought overpriced houses on variable loans which they couldn't afford. I hope those house flippers are suffering right now, they deserve it.
One of India’s largest problem is now coming to Canada……informal cash economy … lots of money earned but never declared as taxable income …. Innocent Canada considers those fraudsters as low income families and provides them with higher benefits….and they enjoy everything. Buyers aren’t victims in most cases but part of the problem. Family making $170k in annual income doesn’t know when they are participating in or committing a financial fraud? Unbelievable!! CRA will have to coordinate with cities to match declared incomes and value of property owned. And boom you can catch the crooks.
A simple solution would just be for banks to obtain consent from borrower to confirm their incomes directly from CRA as the banks do for credit check, but this will interfere with the Ponzi scheme all the parties are enjoying, realtors, brokers and banks would be doing much less if they were to actually follow the rules.
100% true...I know enough people who own millions in assets, driving luxury vehicles, high income cash businesses, declare no income to CRA and collecting maximum Canada child benefits and/or GIS payments meant for low income families. Meanwhile flashing their scam money on us taxpayers who actually fund their lifestyles, telling us jobs suck. Governments and CRA failed miserably or putting a blind eye to this scam.
@@changinglive7 I think banks don’t care because poor CMHC picks up their housing default risk. Very recently, banks supported buyers who were over bidding for homes by raising valuation. That air in the balloon too is probably backed by poor CMHC.
@@OscarSanchez-rh9br They are part of the public service. All earnings are tax paid. Lots of potential trouble in wrongdoings. Efficient or not is a different issue. Policy making in Canada is being led by non-subject matter experts and that in itself is a big issue.
Given the lack of action by the regulators, it make one wonder if they are also in bed with those who are commiting the fraud. I wouldn't be surprised if there's some insider corruption going on inside the offices of the regulators.
Even if there wasn't corruption, which there is plenty, as someone with a finance background I can tell you that financial regulators are some of the most incompetent saps around. Why would someone accept a junior job as a financial regulator for 50K a year when they can make 200K a year to start as a quant for a hedge fund firm? The result is that the worst finance majors become regulators, although I don't believe paying them 200K a year to start is a solution either.
Looks like a great evidenced based class action lawsuit to me. 16, 000 fraudulent mortgage approvals per month?! Also, considering inflation, it looks like a shift is coming in the Canadian real estate market - in favour of buyers - despite predictions there'll be less people choosing to sell now. How sad for these people! They should meet with others who were taken in, and united, take Homelife to court. As well as file their complaints to the RCMP. This is insulting to real estate agents and mortgage brokers who do their jobs in the best interest of their clients, legitimately.
Hey I really feel very connected to CBC especially Marketplace and I was a regular viewer 4-5 years back. All hotel, supermarket tricks, wastes, dangers of fizzy drink and other food products. I like the professional and methodical presentation of a topic.
Not only mortgage agents and real estate agents are involved but bank’s employees are involved in it too they know every thing and have shared amount as well
Bank employees cannot be too creative because of certain regulations inside the branches, that is why the banks rely on brokers to do their dirty work for them, otherwise anybody who has a bank account should be able to go get a mortgage at their branch, but they want to play a bigger gamble and buy a much bigger property so they go to these brokers. Usually most brokers have worked at banks and know how to get around the system.
Regulators are aware but turning blind eyes to it , it’s pathetic and that stress test is simply ridiculously fooled upon . Not fair to people who go by rules..
It’s the banks and the government that is in on it. Lol the news shows how Scotia bank is so upset about this… absolute baloney. It’s time for the housing market to come down and that’s why this is being presented now. We are the sheep in this game.
I think that’s the point why people do this, because many work their lives only to pay someone else’s mortgage or their yearly income and never own a home. If so called “fraud” is the only way to obtain a home, then go for it. It should not have any gate keeping by institutions who have an “image” of the ideal homebuyer. If you have the money, the means and good credit, then let them own the house. When a bank stops you from enjoying what others have that you can have yourself, you find a way around this to obtain it too. Every rich person and position and bank employee is manipulator for cash, simple facts. You see, if everyone can own a home, no one needs to rent to pay someone else’s mortgage. Once people can afford or actually gain entry to buy a home, no ones overpriced 40 year old home will be bought unless at decent market value. When the bank realizes they’re not creating debt you can’t afford and leave you homeless, they actually have to work for money. Hence why only those with homes or those who profiteer from home sales will not want this because they can no longer manipulate the market and the prices. Sure these guys may charge a bit more but you actually get a home!
@@hakasonma8588 That's ridiculous. This is how you end up with a massive economic crash when you let people buy homes they can't afford and interest rates makes them default on loans.
I'm still trying to wrap my head around the couple that came from another country for a better life and could afford a 1.3 million house and have $100,000 available for a down payment??? Seems like they had a pretty good life where they were if they can afford that.
mostly rich people of poor countries come to Canada. Their poor can't even afford basic necessities. The only exception are refugees and those who come here on spousal sponsorships
Will attempt explaining the scenario here - young couple featured in the video would probably have been working out of Bangalore , where pretty much everyone does a high paying tech job - they could have easily spent their lives in India - if you adjust the savings based on cost of living , they would have easily saved twice as compared to here .. however , social media has created a great deal of dissatisfaction amongst people , specifically 25-35 age group . When a person from Bangalore sees feed about Canada through their friends , all they see is fall Colours , first snow , details about free health care , free primary education etc etc - they don’t see the daily struggles that people here have to go through - as a result they decide to move out of the country . Coming to Canada would have been best decision for them had they been earning less in India .. if someone makes more than 85k Cad equivalent combined in India they should not even think about moving out
As someone who has crossed the ocean both morally and literally. The problem in those countries is corruption and rule of law. You can live a great life but if you ever run into any problem (medical, criminal, whatever) you are finished. There is no security of food, rent, religion. Even the very air is toxic. Its the life of cattle, when someone decides to target you, there is literally nothing you can do, unless you want to be the butcher. Some people just choose not to be monsters and that is why they leave. Others just want to roll in their ill gotten wealth. Canada is not going to let you in unless you are loaded (wink wink) into one of those two classes. So yeah these people can afford to buy these houses and the banks are happy to jack up housing prices. When you kick new immigrants that are already down on their luck what are they going to do? Some withdraw into a life of ramen noodles others go big and roll the dice on million dollar homes.
@@mstrmndindia Well let's see...India population density 430 people per square kilometer. Canada density: 4 (28 if you fit everyone within 200 miles of the U.S. boarder). I would take my chances here if I were them.
I wonder how many of these fraudsters will be charged ...they will fine you for going 10 km over speed but for looting 100k from hard working people no action.
This has been going on since long before the last mortgage crash back in 2007-2008. This will not change until a high number of people get stuff sentences for these fraud
Well this certainly explains why the RE market is crashing so quickly and harshly in many parts of Canada. Many buyers could never afford the house on what they really earn in the first place (never mind the added pressure of inflation). Makes the rigorous Canadian mortgage ‘stress test’ completely useless - there was obviously something wrong with this picture and the pieces are starting to fall into place now. Well done investigation program and probably needs a follow up as to how widespread this practice really is. I don’t have much confidence in the regulatory bodies as they don’t seem to be very concerned at all.
Even if they stopped committing fraud, the "stress test" is worthless in Canada. It's more designed for a country with a more temperate climate. It doesn't factor in very well the astronomical costs Canadians pay every winter to run a household.
Exactly. We all knew this was a bubble. And the bubble is now bursting. Terrible for people that purchased a house. But great for people that have been saving cash on the sidelines.
This is the main reason for recent real estate price increase. If government stop this (which I doubt they would be interested in doing so) then the prices will reduce significantly. Not a lot of Canadians can afford the houses at the current price.
Prices will drop naturally with Canada’s financial crises of 2024 to 2027 just getting started. We’re where the US was at the end of 06 since the US prices hit their peak in early 06 but the huge crises and banks collapsing didn’t happen till 08:09. It takes time for the foreclosures to start and work their way through the system.
Why? Is it because you want your prices to be high? Want to feel better than others who cannot afford homes? So that someone else can pay you mortgage and you live essentially rent free or on yearly income? What people like you seem to fail to understand is that some people work hard their whole lives only to pay someone else’s mortgage or are never allowed to own a home because of the bank. So if people like this have to exist (of course to make their own profit) then let them! I know I myself would use one of these methods as I have been looking for this myself and my family. Sadly, I don’t know any. If anyone does, kindly let me know. At the end of the day if the bank can’t help you get home ownership, then someone else will. It’s pretty simple math. I know of other services and products Canada labels as “fraud” or “illegal” in order to let them controlled (manipulated) markets flourish and keep the pocket books in the hands of a few only. Hence why people will always risk “breaking the law” even if law abiding citizens because once you have played by the rules only to gain nothing, essentially you will shift over to these methods to achieve the same way even owner and rich person gains money, through manipulation. It’s funny only those who own homes whine about this, same way those “license holders” cry about “unregulated markets” at the end of the day the consumer has the last say how their money will be used. So why expect everyone to live under you guys when they work hard and can own a home even if the bank won’t allow it? Then again, anyone who has a credit card would be a hypocrite and liar if they said the bank, rep or company did not just tell them we’ll get you approved, just give it a shot. So if the bank will push credit cards on you and approve you through “household income” then someone should be allowed to be offered a chance at owning a home in the same fashion...
@@hakasonma8588 Dude you need to stop supporting fraud, I've seen multiple comments of yours supporting it. You are talking only about first time home buyers, what about people who own 2-3 investment properties committing fraud to purchase those houses? Laws exist for a reason, maybe you should do little bit of research on why these laws exist and what are the ramifications if not followed? It's not pretty simple math. You have one dimensional perspective to this problem, the whole country will get screwed over. Do you know the crux for 2008 real estate crash? Please do research before you comment anymore.
I am a mortgage broker in the US. There are some loans where income documentation is not needed but you pay for it (higher interest rate and downpayment). Shame seeing this going on. After 2008 our industry took a huge hit to our credibility. These people are going to go to jail and lose their livelihood.
I gave a similar case of property and tried to take it to market place over 2 years ago when it happened, but because of high volume if stories it wasn't picked up, however I am glad more of this is being brought to the light, especially since my case is still on going with me still trying to get justice for my situation.
As they say in the legal world, ignorance does not prove innocence. If people are dumb enough to forge documents and participate, they deserve to deal with the consequences.
@@on2thenextthing completely with you on this - end of the day , being gullible is their own fault . Also when you are coming from some other country , you want to make a new clean start .. surely there must be a better way of starting life in Canada than becoming an accomplice in activities that can be classified shady even with plain common sense
Of course they knew. It always works to play victim cards. They all knew but took a chance. They are as guilty as the realtors and the mortgage brokers.
This happened to someone I know really well And he was asking my advice Which was big no from my side But he did what he wanted anyways He bought a house 40% over the price and with an income barely making the month end Moved in last June regretting in October 2022 These brokers licenses should be suspended immediately and given the maximum penalties
if you look into "brokers" and their "rules"...they just go outta business and reopen in a week under a different name owned by the wife/uncle/brother etc. if they havent been hit with any "rulings" they get their insurance money back etc it literally costs them nothing
Sadly nothing will happen. This practice will keep on going. If everything happened legally, the real estate prices would never have gone so high. If you have to legally get a million dollar mortgage, you need to have over 200K income per year which is very rare and a million dollar doesn’t get you anything in Vancouver or Toronto. Current mortgages are similar to pre 2008 US real estate when lenders lent money to people who were not qualified and that is why I think Canadian real estate is gonna tank with next interest rate hikes when you’ll see mortgage taking 80% of the salary which is not sustainable because all these people who fraudulently got mortgage infact don’t make enough to cover their expenses.
US home prices reached their peak in early 06 and foreclosures started in late 06 and picked up in 07 but didn’t make the banks crash and make worldwide headlines till mid 08. Prices dropped a lot in 06, 07 and 08 but didn’t hit bottom till 2011. Since Canada had prices peak in early 2022, foreclosures will start soon but rise a lot next year and the following few years as more Canadians need to refinance at higher rates and the recession hits next year causing huge job losses. Though Canada’s 2008 is probably 2024 with prices hitting bottom somewhere between 25-28
As a Millennial, I feel the pain and pay the price for this. These acts need to stop. This is preventing lots of Millennials to move out of their parents basements.
It's unfortunate because there are a lot of good realtors out there as well as mortgage agents. There's like 70,000 licensed realtors in the GTA. People have choices!! But they always seem to be drawn to whoever will tell them what they want to hear... It's a sad part of the industry on the buy and sale side... people get all starry eyed, ignore the red flags and don't look at alternatives.
@@ironhell808 yeah lots of people are doing this on social media. They make content how you can make money by flipping houses. So they do it cheaply and fast and the end result looks nice but still has many problems.
Good for you! Being honest and having integrity is a rare trait these days. The world just keeps going downhill thanks for many things, dishonesty totally among them! Stay honest
@Friedrich Rubbleheim Dont kid yourself. nobody's gonna get foreclosed. when the economy will start to hurt real bad central banks will inject cash and prop the market up and the penalties and fees and higher interest that these criminals, smarter than you and I, paid will be offset by the capital gains. sure they'll be a few losers but most of those will run away like bandits and we will be left standing with our sausage in our hand.
Don’t a worry. When this unwinds it will be epic. It’s just getting legs now. Mortgage rates at 6% or more are going to wipe out most of Brampton, Mississauga and Milton. That will be the spark the sets the whole thing on fire. I will be sitting with a bowl full of popcorn in an easy chair watching it all unfold from 30,000 feet. Things are going to happen you can never dream of over the next few years. When you think it can’t get worse it will. Housing will get pounded and pounded and slapped again. Ohhhhh mama
As a realtor, I'm very happy to see CBC pointing fingers. I'm sick of hearing about shady practices in this industry. Honest, ethical real estate agents acknowledge that there are far too many bad ones actively trading. It gives the whole industry a bad reputation.
Seen it in the appraisal industry all too well. Banks won’t even deal with appraisal firms that won’t hit their required mortgage value. How does that make sense? But it’s only a few bad apples!?!?!?
Well, I’m currently shopping for a mortgage and yes, 2 of 5 offered me this without me even asking for it. The start by saying even physicians are doing it because no one can have an income to get qualified for such house prices. Is this wrong? hell yes! But honestly, it’s true! The system is punishing those who are abiding the law!
If their million dollar house would have appreciated, this scam would never be reported and everyone would be happy. Now all the drama and tears after million dollar home reduce to 700k.
Canada requires a special police department consists of only financial police officers and give them power to investigate and arrest. Investigate for recommendations are waste of time and useless, no one gets charged.
Why are they all playing victim, even if they got approved with all those fraudulent mortgage fees, there’s still closing costs, a massive mortgage and monthly payments
It's very unfortunate that this is so prevalent in our real estate industry. This hurts the market in a couple of ways and artificially inflating house prices to a point that many can't afford. If clients don't make that money that is presented, the buyer can lose their deposit and more if fraud is found. Lastly the buyers are being charged fees to create fraud and risking being prosecuted along with anyone else is involved ( mortgage agent, real estate agent. etc.)
I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!
@@Believer292 Very true! I've been able to scale from $50K to $189k in this red season because my Financial Advisor figured out Defensive strategies which help portfolios be less vulnerable to market downturns.
@@james.atkins88 How can I reach this adviser of yours? because I'm seeking for a more effective investment approach on my savings?
@@hunter-bourke21 Sure, the financial advisor that guides me is “Julia Ann Finnicum” and she's renowned and has quite a following. So it shouldn't be a hassle finding her. Just look her up.
@@james.atkins88 I just googled her name and her website came up right away. It looks interesting so far. I'm going to book a call with her and let you know how it goes. Thanks
I love how the government agent is shown evidence of fraud from a very simple sting and she acts so surprised, and says "we have to clean it up" wtf have you been doing and why haven't you been running these stings?
they are in it mate
They all are in on it … Every thing seems to be to line someone else’s pockets… from the president to the Canadian Gov. To lenders, banks.. you name it theres a scam but we have to fight the “war on drogs” 😂 they distract the common people with an opioid epidemic, and this supposed war that can’t be won when there really is a war to be had💯 it’s bait and switch with a little smoke and mirrors the governments supply the illegal substances to the streets and allow it to cross the border every single day.. and every once in a while, they “catch“ somebody so it doesn’t raise suspicion. They have been caught smuggling stuff in corpses of dead military personnel, and so many other ways it’s ridiculous. but this is all to distract away from the real white-collar crimes that are going on that make the rich richer and the poor poorer. Between traffic tickets, and this weird war on droogs they claim is going on it’s enough to keep people distracted, and away from the real criminals that are getting away with murder in a financial sense. all of the substances that they have scheduled actually have a medical benefit and were used as medicine at one time. MMJ was made illegal because it was threatening the paper industry as well as the alcohol industry. That was the only reason. cocaine is still used in medicine today and opiates are just another form of heroin but that’s where our focus should be according to everyone’s government, which absolutely isn’t the case. c0caine is still used in medicine today & 0piates are just another form of her0!n & that’s where our focus should be according to everyone’s government, which absolutely isn’t the case. People need to wake up and realize what’s truly going on but unfortunately the average reading level of let’s say the United States is seventh grade so we can’t expect more than 30-40% of the population to comprehend what is actually happening in the world let alone do something about it. The amount of people that are intelligent enough to put the puzzle pieces together is not enough to stop what is happening
@@patfrederick7327 They do nothing unless some Christian Pastor or Catholic Priest gives a thumbs up. All strings are puppeted by the Church in Canada
@@patfrederick7327 Yes, and my advice is always to be wise to this in the back of your mind.
@@patfrederick7327 You are wiser than me. I have been burned so many times and have wounds and great loss in my life to prove it.
As a mortgage professional of 14 years we have reported this behavior many times. We have called the RCMP , licensing bodies and OFSI (office of the superintendent of financial institutions) as well as the banks directly. No one ever got back to us, the agents conducting this form of practice are still succeeding and no action has ever come against them. Happy to CBC covering this topic but I have little faith it will go further. Buyer Beware!
These guys are doing God's work. Rent is higher than mortgage payments. Sometimes people with bad credit and a good job need a break. These guys are doing God's work. You are a narc
@@mattchernawsky9160 Matt smoke another one ok.
@@Bugsy0333 just trying to get houses with bad credit and a good job. Ur a narc
@@mattchernawsky9160 No house for druggie. You keep renting.
@@mattchernawsky9160 "I NEVER NARCD ON NOBODY"🤣
You should show the faces of the corrupt real estate agents as well as mortgage brokers. There should be consequences of their actions
Totally agree here.
Mortgage brokers are licensed so they can lose their license if got caught. Bank mortgage specialists are employed and once got caught they will be just find employment in another bank. And there are many banks there.
@BurntTransistor They can't because then they'd be held liable for potential impacts on those individuals from revealing their identity.
@@junyu3453not true. Bank mortgage specialists are self-employed but licensed through the bank. They too could be charged and lose their license
tarred and feathered on live TV, the other side of the screen is there family members watching..Why not? too cruel? I dont think so
it's crazy to think that when too many people try to get away with these types of acts, the whole economy could crash..
It is when your economy is only based on real estate
@StonkSlayd thats basically how the 2008 crash happened
If an audit is conducted in GTA, 70-75% would be found guilty.
90%
It’s a Ponzi scheme where greed exists at every level, the buyers can choose to go with smaller more affordable but they too want to take the highest return so will gamble the highest.
@@gurveersingh6468 95%
@@kurts3779 please say 99.99%😀
@@ashk5488 all they have to do is match the income reported to that reported to CRA but then banks will now be under scrutiny and nobody would be happy about that.
The thing I hate about realtors and brokers is that they're supposed to act in your best interest and protect you from losing money but they are never held accountable. I think these professions should be more vulnerable to being sued.
should have this same anger to government
At the end of the day, you can’t be preyed upon if you know elementary math. If you make $150k, it shouldn’t matter if you get approved. You should know if you can make the payment or not based on your budget.
@@j.dowland5405 exactly, the “victims” are playing brain dead
As a realtor in Calgary I absolutely agree with you !! I have been selling real estate since 1996 and we need to weed out the crooks to gain more credibility to the ethical agents !! More accountability NEEDS to be done !!! 😡😡😡
@@kyledennis2564 If that's the case, why bother hiring these crooked professionals to facilitate the transaction?
That couple that reported to Scotia Bank gotta be pissed. Imagine reporting a crime and getting kicked out of the bank
Not hard when the bank knows you stumbled into their "sweet gig".
They really should report that crap to whatever banking regulation authority certifies financial institutions in Canada.
They are corrupt too @@SolidSonicTH
No matter where we migrate, we make sure to corrupt that Country. We just cannot go of our Desi ways. Very unfortunate that we are trying to create a country the same as the nation we left from.
Sahi baat hai
Invite the third world, become third world.
Living in Surrey, 90% of east Indian property owners are doing this. Then renting it out to build the portfolio and qualify for more mortgages. Our market has been inflated by this, now people born in BC cannot afford housing.
I would say 99% punjabis are doing this . Just walking around surrey , the “mansions “ you see are housing punjabis who live there and can’t even speak English . Very obvious of how the system is being abused . Now Canadians will never be able to afford a home .
Glad this investigation showed all country men were involved but some figured it out first. The risk comes from families and communities that won't be able to pay or afford these in the long term and hope they won't based on history.
Work harder
Can only be inflated if people can be found ? lol
In Manitoba too and they are cause the housing crisis.
Real estate agent profession is the most under-qualifed and over paid
Here here. Realtors are pointless. It’s their grip on the MLS that keeps them in business.
Yep! In no other profession you got 100% raise during covid.
I gave up a home inspection business because I got sick of realtor's underhanded activities. They are no better them a used car salesman.
@@1486230 100%
@@1486230 5% of a house value for what amounts to not much more than a facebook post?????.....
10 years ago, I went to a realtor to find a house for 250k in toronto. He told me he could get me a house for 500k easy and dont worry about approvals since he could help. This has always been a thing...
same words, I have heard 8 months ago.
Longtime thing
Are you implying that makes it acceptable?
means our system failed to find out about serious matters such as this, sooner!
@@Bojaxs I denied
I'm a mortgage agent, I see fakes monthly. Even get a call every now and then about making things work. It isn't just the south asian community, it's everywhere
This is an important comment that I wish they mentioned in the piece. Especially considering how reactive people are nowadays. Thank you for pointing it out.
It's common though in South Asian and Black communities. When black people are rejected for mortgages, they say it's racism - no, you weren't qualified. Then they get these homes through fraudulent means and can't keep them.
@@alexiatherealtor the foreclosure rate for Canada is the lowest in the world. Banks/B Lenders know this and this is why they turn a blind eye to it. Very rarely will you see anyone from an immigrant community foreclosing on a house. They will take up a 2nd job, lease their basements anything possible to maintain the payments.
@A.J. Sina “this level of fraud” has existed for decades.
Because of the insane interest rates it has slowed to a stop agents and mortgage brokers are doing whatever it takes to make a living and put food on the table
This is sickening. Because of the interest of a few people in the real estate industry, the economic security of Canadians is being threatened by junk mortgages.
You guys are awesome, you are doing something which Canadian government and law forces failed to do for decades. Please put these realtors, agents and home buyers in jail 😢
really? So it is ok if the banks are systematically blocking immigrants of having a property on the basis of lack of credit history? even though they make enough and by any projections, their income will keep on growing in the future. But since they are immigrants, they should not own better properties than native canadians right?
I was waiting for such a documentary. Never thought this would ever be brought to light.
Buyers who were able to successfully close the deal with these types of hyped income and faked documents are and will always be silent but when it fails, the buyer feels deceived and come forward to put the agent in trouble, but they fail to understand that they are complicit in this fraudulent activity.
yea this couple walked away from their $40k deposit because they bought at the peak and regretted it
@@m.b5777 and going back to India so they can get away from the rest of the problems
@@m.b5777 exactly they are doing everything possible to put the blame on the Realtor and his contact. Meanwhile the truth is they’re regretting their decision from February 2022.
@@garyphull2819 scumbag realtor detected.
doesn't change the fact that the agent actively aids and encourages. By the comments its almost as if agents were "unwilling victims". What a load. "Aw the poor victim agents".
Why marketplace is able to uncover those stories and people who are in charge of chasing fraud can’t?
Thank you !
They dont care!
They work for people who have a vested interest in keeping the machine moving
How can you find anything when you refuse to look??
They get a cut. Only reason to ignore these issues.
They are in it and Trudeau is secretly the ring leader
unfortunately, its not just happening in the mortgage industry but it's also happening in immigration agencies all throughout GTA area.
I now understand how people buy expensive homes and investment properties . I always wondered who has the salaries to buy 2 million dollars homes. Some people own 5- 10 homes but not much income. Thats crazy. Is the government, regulators, police sleeping or they want these realtors, mortgage reps and banks to keep doing the fraud?
gov doesn’t care. bank blindly take papers and done!
start with real estator then mortgage brokers..
They know, Realtors are scammers. Simple. Don't let them make money with your property!
Destroying communities in record breaking time! Then lying to the public about the cause of the damages! Canada is under siege and you don't hear them talking to Canadians about that!!
Here's a concept, why not buy a house that's within your means!?! Why are people spending over a million dollars on a house. Don't know if it's the realtor or the buyer's own ignorance.
@@systemoperator7792 💯
This is exactly what happened in 2007 & 8 in the us, unqualified folks were convinced to buy overpriced houses, it was a disaster for everyone. GREAT reporting, keep up the good work.
Really?
@@henrymalacho4837 almost, shes talking about how the housing bubble began, but it isnt the reason why it was a disaster for "everyone" aka the financial crisis. the subprime mortgages were sold with aaa mortgages as mortgage back securities that investment firms pushed to their clients. this is what caused banks to almost fail until the bailout which tanked the economy, which led to "a disaster for everyone".
Too little to lars
🎉yes you are right for 100%
realter knew
buyer knew
seller knew
banks knew
They all making money
And the government knows and supports it.
Thats the problem
@@missmarya747 only buyer is at risk, broker and realtor are out as soon as mortgage is funded, banks transfer the risk to CMHC, buyers risk loosing downpayment and credit for a long time.
@@changinglive7 What if they are paying 20% down payment, which is the case in most of these fraud mortgages?
The CRA could easily provide an online interface to check if a T4 is valid for a given SIN + income. But it won't, because to government is interested in ever increasing real estate prices.
Its coming - through Equifax - already being done in the US. Paystubs everything will eventually be linked to CBureau
@@philweir3108 that’s only established in U.S at the moment. Canada’s equifax employment verification is nowhere near as robust.
This is something that has happened for generations for a particular race of people. Now all of a sudden it's shocking to hear that it's still happening. I'm not surprised at all.
What race? 😮
@@ratedr9672 the scammer race lol
@@ratedr9672 indians
@@ratedr9672Indians. They bring their corrupt ways to the West.
Completely break my heart to see this couple going through that pain.
I'm glad that the program is naming names... Homelife, Scotia, etc...
all banks are involved not just Scotia
All banks who employ brokers are involved in this, why would they need brokers when they have bankers doing the same thing in their branches, it is basically a data entry job paying huge commissions for being creative
@@m.b5777 Good point.
We were told my our agent , when we submitted papers to bank directly for pre approval…agent actually said are you sure you will qualify? Or do you need help? We heard the details of the help…and we were shocked! Thank fully our conscious worked and we refused the offer…we sized down what we could get instead of a house we got a small condo to stay in the limit of our pre-approval. Thank you CBC for coming out with this. We could not literally try to buy any house due to this trend causing bidding wars.
What did the agent suggest?
@Sean Downey this is not anything like what was taking place in the US. The banks/mortgage companies were legally selling subprime mortgages. They were not checking people's income, they were just making money with mortgages. The mortgages started below prime and then the lenders could raise them to whatever interest rate they wanted.
@Sean Downey Yes, you're right about 2008 in the 'States.
@Sean Downey It's already here, prices crashed over 30% where I live in Canada. My agent says probably another 50% to fall.
@Sean Downey Yes, that is exactly why it happened.
I'm a realtor from Minnesota, USA and man.. any kind of fraud activities, you'll get in deep trouble. I can see this happening.. I was more shocked to see that there was evidence and the Canadian Realtor Association wouldn't do anything about it.
@@ironhell808 thats crazy to here, what lake were you on?
@@ironhell808 :( boy racism and xenophobia (no matter which one it is) is a hell of a drug and they seem to like it in their kool-aid
@@Shimakaze2487 Whatever! You're seriously going to wholesale believe some stranger on yootoob? Being gullible makes you look dumb.
Canadian realtor board are low testosterone
They must be paying off the government. No wonder we had such a huge housing bubble here in Canada. Thankfully prices are crashing now.
I use to be a housekeeper/assistant to a mortgage broker in the GAT and she FREQUENTLY came across this type of fraud.
only 5-6 people arrested ? from 80 k real estate agents and brokers in ontario
Being an Indian, I can tell you one thing with certainty! Every person in the Indian community knows at least 10 people who got homes via mortgage fraud. The real estate regulatory authorities are literally sleeping while the south asian realtors are robbing this country blind. This will be 2008 recession all over again. This is not about race but unfortunately the Indian community will at the end bring canada down to its knees while the greedy realtors and mortgage agents line up their pockets. May god save and bless this country now. Kudos to CBC to finally do something about it.
What is your source? I have a hard time believing every person in the Indian community knows 10 people who got homes period, let alone via mortgage fraud.
I know atleast 6 to 8 persons
I had Indian tenants. Nice people but even as a landlord they played me a little.
A scammer from India robbed my parents their retirement savings.
I’m sorry, but I’m not surprised by what you’re saying. Yeah this country needs to do more to protect us.
At this rate let's let's just point the finger at every other minority. Who's to say that Indians and the Chinese must all be doing fraud...
Fraud is happening in all demographics. I guess all hardworking Canadians of a different color may have done mortgage fraud. I guess there is no hard working Canadians after all..
It's not just Indian immigrants, I've heard the same from Koreans, Chinese, etc. Often this isn't to help people buy homes they could otherwise not afford (they can afford them), rather, it is to alter income to dodge taxes like the "Speculation and Vacancy Tax" in BC, where they would have to pay if they didn't earn their money here.
RECO is the worst federal agency. They have sat and watched the real estate going through the roof while perpetuating such mortgage frauds.
RECO - Real Estate Council of Ontario. Not a federal agency. Call your MPP not your MP and tell them what you think.
It's very unfortunate that this is so prevalent in our real estate industry. This hurts the market in a couple of ways. 1. Artificially inflating house prices to a point that many can't afford. 2. If clients don't make that money that is presented, the buyer can lose their deposit and more if fraud is found. 3. Buyers are being charged fees to create fraud and risking being prosecuted along with anyone else is involved ( mortgage agent, real estate agent, underwriter and etc.)
And people that can't afford a house finally being able to buy one. Is that good or bad?
@@notnotnownow9622 If it stops genuine buyers from getting a home at real value pricing, what do you think
@@alanmcclelland5245 Do you really think it's a long line of buyers out there today?
@@notnotnownow9622 at +6%, it's willful financial suicide.
@@nokintendo9132 Everybody's situation is different.
So what happened to the real state agents who were caught on the camera? I mean what’s the whole purpose of this investigation when these same people are working in the same industry. Is Canadian authority doing anything about it? Or they only going for small fishes?
Exactly.
I always wonder why no updates bout these stories ever happen.
Canadian regulators are either sleeping or are sleeping with these scums. The average Canadian salary is 50,000 a year, and average household expense is about 40k a year. To buy even a town house in Brampton you need a 20% down of at least 180k which means it will take an average Canadian 18 years to collect the downpayment
Is our government not seeing this gap between the actual incomes and the selling prices of the houses.
At the end even for a home owner like me I am impacted every other month with an increasing.monthly mortgage and I don't know if I will even be able to put food on my family's table, thinking of giving my child a good education seems to be dream now.
Wake up regulators, wake up government, wake the hell up
This has been running for over 15 years! At least in southern Ontario. I can point to a dozen houses that were bought in this manner!
Send the info to regulators and hopefully regulators are not crooked
@@Prabh892 what Regulators?? They are just highly paid Admin jobs ? How often do you hear of all kinds of misdoings at the banks, has been going on for over 30yrs and will go one unless the govt stops buying bank mortgage debts and stops employing brokers altogether. Brokers are nothing but data entry clerks, they collect data from buyer and input into the banks system, the only reason AI has not replaced them is because AI will not be “creative”, banks rely on the brokers to be “creative” otherwise the same job can be done by the banker sitting inside the branch.
No mortgage broker in the history of Canada has gone to jail for mortgage fraud
Same happening here in lower mainland B.C from years.
Why do we need regulators if they don't do their job?
Exactly, why to take the burden of regulators if they are not doing even 10% of thier jobs.
They did claim to suspend 7 brokers in 5yrs so there is your millions of dollars well spent, while 700 more may have entered the market.
@@changinglive7 Exactly! If this is an open secret, then more should have been done.
Exactly! Almost makes me feel like they are in on it!
I know a few mortgage brokers and pretty much every one of them does it and does it for a long time. This is how someone works for minimum wage able buy (Of course with over asking price) million dollar home . The only way to stop it is the CRA and/or Federal government must provide a way to verify the notice of assessment (NOA). RECO : A self regulating real estate MAFIA /Cartel. A self regulating body never works for the public . If the federal government facilitated and mandated the NOA verification for new mortgages and renewals , home prices in Canada would go back to the year 2000 price level . The level of fraud is way higher than this documentary portrays.
True .
0
True but the real fraud is the cost of homes and the amount banks charge for interest
2000 price level.. lol you wish
I am a licensed Realtor in the US (for 16 years) and I know HUNDREDS of Realtors and mortgage brokers and can count on ONE HAND the number who I even suspect might facilitate fraud like this. It is not nearly as common (at least not in the US) as they make it sound. SO yes, this is a terrible practice, but it's also disgusting how CBC is misrepresenting the industry by suggesting that 20% of professionals do this kind of thing routinely. It's just not so. Many of these folks will end up in JAIL for this...
This should be highly illegal, and these people committing this fraud from both sides should be put in jail.
Thank you very much giving this awareness to the community. I am proud of you and always will
Buyers are also responsible for this fraud. One of my realtor friend told one buyer to wait 3 months to build credit score and that buyer baught a house from another agent. So, buyers are like if you can't help me with mortgage, I will go with other realtor.
Of course, if house pricing is on the rise, who can wait 3 months?
Journalism isn't dead yet. Good work.
It is when it is so biased. 30 minute episode targeting one community and one brokerage. Meanwhile all others sit back and watch the drama unfold.
Investigative journalism like this is why I want to keep the CBC well funded.
Even a broken clock is right twice a day ... doesn't mean I would want to own one. The CBC is broken, beyond repair and not worth $1.3 BILLION/yr to spew their leftist propaganda
😂😆 Government funding Thier own "News"
Now do politicians
they are just ten years late to the party here, that is my issue, they barely covered the BC elections, but ya this one is a banger and makes up for a bunch of their recent failures
Don't you worry. Trudeau is funding them very well - too well!
I am extremely happy to see that people are actually weeding these scums out. My dad is a real estate agent in India and these scams were all over the place. He keeps asking me about the situation in Canada. When I told him about how the things are here, he told me to buy a house later but with every legal means necessary.
They will not get away with it!!!!!
The thing is the owner of the realtyis part of the fraud, he isnjust acting ckean in front of the camera!
I’m terrified of opening RUclips or the news because every time I do, I encounter negative stories about my community.
I used to work at FSRA, the so-called Ontario mortgage regulator. That organization is useless when it comes to preventing mortgage fraud by the agents it regulates. Call them yourself and see for yourself. I would suggest calling its CEO and he won't be able to do anything because they are clueless. Ontario needs to get rid of FSRA and RECO as regulators....they are not protecting the public interest at all.
“One of the hallmarks of mania is the rapid rise in the complexity and rates of fraud." - Michael Burry in The Big Short
The system has created all these loopholes. The industry gets shaken up, time passes, some agents get fined. To be honest, seeing these families getting screwed up is tough. Hope these crooked agents and mortgage brokers pay the price. The brokerage must be sued and held accountable.
Looks like a repeat from 2008 which was called real estate meat factories..or something to that effect. I agree with you 100% - it's the government system (judicial system included) that allows, through sweet deals and other corruptive measures, for the shady crooks' predatory actions.
Marketplace should make another video to follow up. It almost a year now , nothing happened. Where is the police? Why no one been charged? In US, mortgage fraud will face a mix 30 years jail.
This is just the tip of the iceberg... I've heard of similar scams in Calgary, Montreal and Vancouver. How greedy can you get? Did they not make enough millions from commissions during the housing sale boom from 2020 to 2023? This is despicable!
Yes, India is also one of the unhappiest countries in the world. You can see why - greed, lying, cheating, stealing, to get what they want. This leads to a country where no one pays taxes and the streets are a mess, the buildings are trash, and the poor are the only ones who have any morals, and they have no power because the thieves are in control. Don't let Canada be ruined by this.
The stress test was a joke. I know people who bought 3 houses on minimum wage. They are renting out 4 rooms to 8 students in each house. That is how they pay their mortgages. And they had no money down because downpayment came from private lenders who registered second mortgages after the bank registered the first ones. Now their homes have gone up over 40% and they are millionaires on paper.
I tried many times to get mortgage and was declined. So I bought landloards houses instead
They better kick out their tenants fast early in the school year and sell before their Trigger rates/points are hit and mortgage rates rise more and prices/values plummet even more. The longer they wait the faster the millions in paper evaporate faster than they went up in the first place
8 I have seen 16 student truck drivers in house
@@mickiiip1050 when home prices were rising private lenders had no problem lending people downpayment for 8-12% interest. The mortgage brokers arranged it and on paper made it look like it was a gift which came from a family member . Once the mortgage is approved the banks don't check of a second mortgage is registered against a property. So the broker would ask his lawyer buddy to register the 2nd mortgage after a week of the bank registering theirs. Everyone from lawyer to broker to bank employees get huge commissions
Prices were rising fast so after 2 years the broker would refinance and pay off the 2nd mortgage. Of course he would get more commissions from refinancing
@@mickiiip1050 I don't really understand what you're asking, some buyers are going to private individuals to get a loan for the downpayment on the properties.
These realtors and bankers should be in jail. Throw some of these guys behind bars for 10-15 years and you’ll see the amount of fraud go way down. Instead the most we throw at them are suspensions of their cereal box licenses.
Yes but the world leaders have made a decree that nobody goes to jail so now what
that’s antisemitic
I sold my home and had all of my proceeds stolen the agent then filed a bankruptcy sent info to deceased person who had the same name in another state not notifying of bk court dates and walked away with $240,000 and my home i reported them and nothing was ever done
But the buyer will go to jail too, he is part of the fraud. At the end of the day his signature is on the paper and you can't claim they had no idea about the process when the broker is soo transparent.
amen to that. It is an abomination that no one got jailed over the 2008 thing.
The reason why we are in such a mess is because of the real estate agency
ruclips.net/video/yGq5BPz7sQo/видео.html
Really?
Disgusting people. That's the reason why I'll still do my due diligence even if I hire realtors because I don't completely trust them even if they are professional and great at what they do. "Great at what they do" maybe means taking advantage to maximize how much they earn.
True, we are looking to buy home in near future and although our agent is a professional, she recently said something like you can get a specific amount (which we are looking for) in mortgage loan but the lender requires an offer so that they know are purchasing a particular property. In short, we are not getting pre-approved but we can get that rate once we have put the offer.. That's just asking for trouble, We are planning to hold off buying for now until we have some more savings. If you can't afford it don't buy it simple, don't make things harder for yourself. People who bought a house in February of this year are crying right now because they bought overpriced houses on variable loans which they couldn't afford. I hope those house flippers are suffering right now, they deserve it.
Clients KNEW they are commiting a crime frauding papers for mortgage. They all must be punished, broker and clients.
One of India’s largest problem is now coming to Canada……informal cash economy … lots of money earned but never declared as taxable income …. Innocent Canada considers those fraudsters as low income families and provides them with higher benefits….and they enjoy everything. Buyers aren’t victims in most cases but part of the problem. Family making $170k in annual income doesn’t know when they are participating in or committing a financial fraud? Unbelievable!!
CRA will have to coordinate with cities to match declared incomes and value of property owned. And boom you can catch the crooks.
Corruption imported from India to Canada! Yayyy!!..We might even have scam call centers here in Canada and dont even know it!!.
A simple solution would just be for banks to obtain consent from borrower to confirm their incomes directly from CRA as the banks do for credit check, but this will interfere with the Ponzi scheme all the parties are enjoying, realtors, brokers and banks would be doing much less if they were to actually follow the rules.
100% true...I know enough people who own millions in assets, driving luxury vehicles, high income cash businesses, declare no income to CRA and collecting maximum Canada child benefits and/or GIS payments meant for low income families. Meanwhile flashing their scam money on us taxpayers who actually fund their lifestyles, telling us jobs suck.
Governments and CRA failed miserably or putting a blind eye to this scam.
@@changinglive7 I think banks don’t care because poor CMHC picks up their housing default risk. Very recently, banks supported buyers who were over bidding for homes by raising valuation. That air in the balloon too is probably backed by poor CMHC.
@@OscarSanchez-rh9br They are part of the public service. All earnings are tax paid. Lots of potential trouble in wrongdoings.
Efficient or not is a different issue. Policy making in Canada is being led by non-subject matter experts and that in itself is a big issue.
Given the lack of action by the regulators, it make one wonder if they are also in bed with those who are commiting the fraud. I wouldn't be surprised if there's some insider corruption going on inside the offices of the regulators.
Even if there wasn't corruption, which there is plenty, as someone with a finance background I can tell you that financial regulators are some of the most incompetent saps around. Why would someone accept a junior job as a financial regulator for 50K a year when they can make 200K a year to start as a quant for a hedge fund firm? The result is that the worst finance majors become regulators, although I don't believe paying them 200K a year to start is a solution either.
Looks like a great evidenced based class action lawsuit to me. 16, 000 fraudulent mortgage approvals per month?! Also, considering inflation, it looks like a shift is coming in the Canadian real estate market - in favour of buyers - despite predictions there'll be less people choosing to sell now. How sad for these people! They should meet with others who were taken in, and united, take Homelife to court. As well as file their complaints to the RCMP. This is insulting to real estate agents and mortgage brokers who do their jobs in the best interest of their clients, legitimately.
ruclips.net/video/yGq5BPz7sQo/видео.html
Best part is guaranteed a lot of the banks know the documents aren’t legit. Ppl are fooled to think otherwise
WHAT? How about “No Down” “No Docs” that got us 2008 & I retired!!
Omg put those SOBs in jail. Worked 28 years in real estate with not one complaint.
Hey I really feel very connected to CBC especially Marketplace and I was a regular viewer 4-5 years back. All hotel, supermarket tricks, wastes, dangers of fizzy drink and other food products. I like the professional and methodical presentation of a topic.
Yes, have been watching it for years. It's an excellent program
Not only mortgage agents and real estate agents are involved but bank’s employees are involved in it too they know every thing and have shared amount as well
Bank employees cannot be too creative because of certain regulations inside the branches, that is why the banks rely on brokers to do their dirty work for them, otherwise anybody who has a bank account should be able to go get a mortgage at their branch, but they want to play a bigger gamble and buy a much bigger property so they go to these brokers. Usually most brokers have worked at banks and know how to get around the system.
Regulators are aware but turning blind eyes to it , it’s pathetic and that stress test is simply ridiculously fooled upon . Not fair to people who go by rules..
Realtors don’t want this to happens as it’s big commissions for them..!!!
It’s the banks and the government that is in on it. Lol the news shows how Scotia bank is so upset about this… absolute baloney.
It’s time for the housing market to come down and that’s why this is being presented now.
We are the sheep in this game.
I think that’s the point why people do this, because many work their lives only to pay someone else’s mortgage or their yearly income and never own a home.
If so called “fraud” is the only way to obtain a home, then go for it.
It should not have any gate keeping by institutions who have an “image” of the ideal homebuyer. If you have the money, the means and good credit, then let them own the house.
When a bank stops you from enjoying what others have that you can have yourself, you find a way around this to obtain it too.
Every rich person and position and bank employee is manipulator for cash, simple facts.
You see, if everyone can own a home, no one needs to rent to pay someone else’s mortgage. Once people can afford or actually gain entry to buy a home, no ones overpriced 40 year old home will be bought unless at decent market value. When the bank realizes they’re not creating debt you can’t afford and leave you homeless, they actually have to work for money.
Hence why only those with homes or those who profiteer from home sales will not want this because they can no longer manipulate the market and the prices. Sure these guys may charge a bit more but you actually get a home!
@@ironhell808 What? That's your takeaway? 🤯
@@hakasonma8588 That's ridiculous. This is how you end up with a massive economic crash when you let people buy homes they can't afford and interest rates makes them default on loans.
I'm still trying to wrap my head around the couple that came from another country for a better life and could afford a 1.3 million house and have $100,000 available for a down payment??? Seems like they had a pretty good life where they were if they can afford that.
mostly rich people of poor countries come to Canada. Their poor can't even afford basic necessities. The only exception are refugees and those who come here on spousal sponsorships
Will attempt explaining the scenario here - young couple featured in the video would probably have been working out of Bangalore , where pretty much everyone does a high paying tech job - they could have easily spent their lives in India - if you adjust the savings based on cost of living , they would have easily saved twice as compared to here .. however , social media has created a great deal of dissatisfaction amongst people , specifically 25-35 age group . When a person from Bangalore sees feed about Canada through their friends , all they see is fall Colours , first snow , details about free health care , free primary education etc etc - they don’t see the daily struggles that people here have to go through - as a result they decide to move out of the country . Coming to Canada would have been best decision for them had they been earning less in India .. if someone makes more than 85k Cad equivalent combined in India they should not even think about moving out
I was thinking the same thing also
As someone who has crossed the ocean both morally and literally. The problem in those countries is corruption and rule of law. You can live a great life but if you ever run into any problem (medical, criminal, whatever) you are finished. There is no security of food, rent, religion. Even the very air is toxic. Its the life of cattle, when someone decides to target you, there is literally nothing you can do, unless you want to be the butcher.
Some people just choose not to be monsters and that is why they leave. Others just want to roll in their ill gotten wealth. Canada is not going to let you in unless you are loaded (wink wink) into one of those two classes.
So yeah these people can afford to buy these houses and the banks are happy to jack up housing prices. When you kick new immigrants that are already down on their luck what are they going to do? Some withdraw into a life of ramen noodles others go big and roll the dice on million dollar homes.
@@mstrmndindia Well let's see...India population density 430 people per square kilometer. Canada density: 4 (28 if you fit everyone within 200 miles of the U.S. boarder). I would take my chances here if I were them.
This is prevalent for Homelife. Glad you did this episode. Do part 2 and I can provide you with a real estate agent that does this fraud regularly
What is his name?
I wonder how many of these fraudsters will be charged ...they will fine you for going 10 km over speed but for looting 100k from hard working people no action.
This has been going on since long before the last mortgage crash back in 2007-2008. This will not change until a high number of people get stuff sentences for these fraud
These crying people doesn’t deserve any sympathy, trust they all knew what the doing.
Well this certainly explains why the RE market is crashing so quickly and harshly in many parts of Canada. Many buyers could never afford the house on what they really earn in the first place (never mind the added pressure of inflation). Makes the rigorous Canadian mortgage ‘stress test’ completely useless - there was obviously something wrong with this picture and the pieces are starting to fall into place now. Well done investigation program and probably needs a follow up as to how widespread this practice really is. I don’t have much confidence in the regulatory bodies as they don’t seem to be very concerned at all.
This explains why the RE market has been exploding for a decade. It's not legitimate buyers. We can only hope for a crash.
Even if they stopped committing fraud, the "stress test" is worthless in Canada. It's more designed for a country with a more temperate climate. It doesn't factor in very well the astronomical costs Canadians pay every winter to run a household.
RE is not crashing and certainly not harshly alothoug hyou may wish it is ...
Exactly. We all knew this was a bubble. And the bubble is now bursting. Terrible for people that purchased a house. But great for people that have been saving cash on the sidelines.
Many were also courted by super low variable interest rates. Not going well
this is huge issue that is driving houses to be unaffordable, it will be much bigger than just 1 firm.
This is the main reason for recent real estate price increase. If government stop this (which I doubt they would be interested in doing so) then the prices will reduce significantly. Not a lot of Canadians can afford the houses at the current price.
Prices will drop naturally with Canada’s financial crises of 2024 to 2027 just getting started. We’re where the US was at the end of 06 since the US prices hit their peak in early 06 but the huge crises and banks collapsing didn’t happen till 08:09. It takes time for the foreclosures to start and work their way through the system.
My realtor was encouraging me to do this and said it’s the norm. When I run the numbers, I told him I’ll pass on this.
Same here. We refused to go this route suggested by a realtor.
This video is currently trending #17. We need to share it as much as possible so that it trends #1. That's the least we can do to fight mortgage fraud
Why? Is it because you want your prices to be high? Want to feel better than others who cannot afford homes? So that someone else can pay you mortgage and you live essentially rent free or on yearly income?
What people like you seem to fail to understand is that some people work hard their whole lives only to pay someone else’s mortgage or are never allowed to own a home because of the bank.
So if people like this have to exist (of course to make their own profit) then let them!
I know I myself would use one of these methods as I have been looking for this myself and my family. Sadly, I don’t know any. If anyone does, kindly let me know.
At the end of the day if the bank can’t help you get home ownership, then someone else will. It’s pretty simple math.
I know of other services and products Canada labels as “fraud” or “illegal” in order to let them controlled (manipulated) markets flourish and keep the pocket books in the hands of a few only.
Hence why people will always risk “breaking the law” even if law abiding citizens because once you have played by the rules only to gain nothing, essentially you will shift over to these methods to achieve the same way even owner and rich person gains money, through manipulation.
It’s funny only those who own homes whine about this, same way those “license holders” cry about “unregulated markets” at the end of the day the consumer has the last say how their money will be used.
So why expect everyone to live under you guys when they work hard and can own a home even if the bank won’t allow it?
Then again, anyone who has a credit card would be a hypocrite and liar if they said the bank, rep or company did not just tell them we’ll get you approved, just give it a shot. So if the bank will push credit cards on you and approve you through “household income” then someone should be allowed to be offered a chance at owning a home in the same fashion...
@@hakasonma8588 Dude you need to stop supporting fraud, I've seen multiple comments of yours supporting it. You are talking only about first time home buyers, what about people who own 2-3 investment properties committing fraud to purchase those houses? Laws exist for a reason, maybe you should do little bit of research on why these laws exist and what are the ramifications if not followed? It's not pretty simple math. You have one dimensional perspective to this problem, the whole country will get screwed over. Do you know the crux for 2008 real estate crash? Please do research before you comment anymore.
@@hakasonma8588 it's funny that even after watching this video you can't figure out who to contact to be part of the fraud
@@hakasonma8588 so you want to encourage fraud because everyone can’t afford for their own home. Great!
@@hakasonma8588 nope that’s what got the US in trouble in 2008
I am a mortgage broker in the US. There are some loans where income documentation is not needed but you pay for it (higher interest rate and downpayment).
Shame seeing this going on. After 2008 our industry took a huge hit to our credibility. These people are going to go to jail and lose their livelihood.
I gave a similar case of property and tried to take it to market place over 2 years ago when it happened, but because of high volume if stories it wasn't picked up, however I am glad more of this is being brought to the light, especially since my case is still on going with me still trying to get justice for my situation.
Sorry to hear this. Was it also Homelife? Were u able to take back ur deposit?
they make 170k a year and you tell me they didnt know what their realtor was up to？I thought they came from India not mars
As they say in the legal world, ignorance does not prove innocence. If people are dumb enough to forge documents and participate, they deserve to deal with the consequences.
@@on2thenextthing completely with you on this - end of the day , being gullible is their own fault . Also when you are coming from some other country , you want to make a new clean start .. surely there must be a better way of starting life in Canada than becoming an accomplice in activities that can be classified shady even with plain common sense
Of course they knew. It always works to play victim cards. They all knew but took a chance. They are as guilty as the realtors and the mortgage brokers.
Brampton is the epicentre of mortgage fraud in GTA.
This happened to someone I know really well
And he was asking my advice
Which was big no from my side
But he did what he wanted anyways
He bought a house 40% over the price and with an income barely making the month end
Moved in last June regretting in October 2022
These brokers licenses should be suspended immediately and given the maximum penalties
Suspended only? This is a financial crime!
40% over price? He crazy
Fraud? That's more than license suspension, it's time to go court.
They should go to jail.
if you look into "brokers" and their "rules"...they just go outta business and reopen in a week under a different name owned by the wife/uncle/brother etc.
if they havent been hit with any "rulings" they get their insurance money back etc
it literally costs them nothing
The question is why are they still working and access to banks? Arrest and lock up for 10 years or more and never allow them to get a license again.
Buyers also need to be held accountable as I’m sure they know or should know how much they can afford.
Sadly nothing will happen. This practice will keep on going. If everything happened legally, the real estate prices would never have gone so high. If you have to legally get a million dollar mortgage, you need to have over 200K income per year which is very rare and a million dollar doesn’t get you anything in Vancouver or Toronto. Current mortgages are similar to pre 2008 US real estate when lenders lent money to people who were not qualified and that is why I think Canadian real estate is gonna tank with next interest rate hikes when you’ll see mortgage taking 80% of the salary which is not sustainable because all these people who fraudulently got mortgage infact don’t make enough to cover their expenses.
US home prices reached their peak in early 06 and foreclosures started in late 06 and picked up in 07 but didn’t make the banks crash and make worldwide headlines till mid 08. Prices dropped a lot in 06, 07 and 08 but didn’t hit bottom till 2011.
Since Canada had prices peak in early 2022, foreclosures will start soon but rise a lot next year and the following few years as more Canadians need to refinance at higher rates and the recession hits next year causing huge job losses. Though Canada’s 2008 is probably 2024 with prices hitting bottom somewhere between 25-28
As a Millennial, I feel the pain and pay the price for this. These acts need to stop. This is preventing lots of Millennials to move out of their parents basements.
Are people really surprised?? This has been going on forever
These white collar criminals need to be in a prison cell. They are not only hurting these families, they are hurting the entire real estate market
Why did you blur the faces of these scammers?
I used to be an agent and couldn't keep working because I was too honest. I couldn't keep up to all those agents who did stuff like this
It's unfortunate because there are a lot of good realtors out there as well as mortgage agents. There's like 70,000 licensed realtors in the GTA. People have choices!! But they always seem to be drawn to whoever will tell them what they want to hear... It's a sad part of the industry on the buy and sale side... people get all starry eyed, ignore the red flags and don't look at alternatives.
@@ironhell808 yeah lots of people are doing this on social media.
They make content how you can make money by flipping houses.
So they do it cheaply and fast and the end result looks nice but still has many problems.
Good for you! Being honest and having integrity is a rare trait these days. The world just keeps going downhill thanks for many things, dishonesty totally among them! Stay honest
makes me feel like an absolute simpleton following the law when everyone around and their mom is getting an unfair advantage
@Friedrich Rubbleheim Dont kid yourself. nobody's gonna get foreclosed. when the economy will start to hurt real bad central banks will inject cash and prop the market up and the penalties and fees and higher interest that these criminals, smarter than you and I, paid will be offset by the capital gains. sure they'll be a few losers but most of those will run away like bandits and we will be left standing with our sausage in our hand.
Don’t a worry. When this unwinds it will be epic. It’s just getting legs now. Mortgage rates at 6% or more are going to wipe out most of Brampton, Mississauga and Milton. That will be the spark the sets the whole thing on fire. I will be sitting with a bowl full of popcorn in an easy chair watching it all unfold from 30,000 feet. Things are going to happen you can never dream of over the next few years. When you think it can’t get worse it will. Housing will get pounded and pounded and slapped again. Ohhhhh mama
@Friedrich Rubbleheim These are the first mortgages to fail. There will be many like thin in 2023 as rates rise.
It's not just houses. Cars are bought like this too. Everyone wants a bite!
This happens in car sales too. The banks don't care as long as they get their money.
Why don’t these newcomers rent apartment for a year. I find this incredulous!
It's called the Brampton Mortgage and this is not new. I remember my parents talking about this going on when I was a kid, 15+ years ago.
As a realtor, I'm very happy to see CBC pointing fingers. I'm sick of hearing about shady practices in this industry.
Honest, ethical real estate agents acknowledge that there are far too many bad ones actively trading. It gives the whole industry a bad reputation.
Seen it in the appraisal industry all too well. Banks won’t even deal with appraisal firms that won’t hit their required mortgage value. How does that make sense? But it’s only a few bad apples!?!?!?
I agree So does RECO do anything about this ?
Well, I’m currently shopping for a mortgage and yes, 2 of 5 offered me this without me even asking for it. The start by saying even physicians are doing it because no one can have an income to get qualified for such house prices. Is this wrong? hell yes! But honestly, it’s true! The system is punishing those who are abiding the law!
Wow! What mortgage Co's offered this? Insane
@@lisa408t well one is a mortgage broker who has her own office and staff. The other is an advisor who works at CIBC.
When there is no real punishment, there won't be any incentive to stop.
This has been going on forever in Canada. Even in Surrey and Vancouver area too.
If their million dollar house would have appreciated, this scam would never be reported and everyone would be happy. Now all the drama and tears after million dollar home reduce to 700k.
Banks/Credit unions should audit the existing mortgages which looks sketchy and penalize all the stakeholders involved in fraud!
Canada requires a special police department consists of only financial police officers and give them power to investigate and arrest. Investigate for recommendations are waste of time and useless, no one gets charged.
Whenever someone official says they won’t comment, it typically means someone is obviously being paid off and keep their mouth shut.
They should be jailed for this, too bad the government won’t do anything
Why are they all playing victim, even if they got approved with all those fraudulent mortgage fees, there’s still closing costs, a massive mortgage and monthly payments