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Canadians that believe they can allow others to use their names and credit records to attain mortgages on a property are mistaken. Doing as much can result in jail time and large fines.
Accepting a payment, usually in the sum of $3,000 to $5,000, to allow someone to use your name and credit record to attain a mortgage on a property is fraud, and could result in jail time.
Regardless of how well one might feel they know a potential buyer, the truth of the matter is that these transactions are illegal. Participants could end up with heavy fines, a prison stay, and the saddling of a mortgage on a property they never intended to dwell in or own.
CAAMP says that there are nearly 20,000 Canadians holding mortgage broker and mortgage agent licenses in Canada. Of these 20,000 mortgage professionals, it is assumed that only 12,000 are currently active.
According to the Canadian Association of Accredited Mortgage Professionals (CAAMP), nearly 20,000 Canadians currently hold mortgage broker and/or mortgage agent licenses in Canada. However, it is assumed that only 12,000 of these are actually operating actively.
While Canada’s mortgage broker count saw numbers increase over the last three years it appears that these numbers have spiked and leveled out over the last year. Reasons being:
Amidst falling housing prices, Canadian mortgage balances have risen for nearly a third of Canadian home owners.
Data collected by Ipsos Reid’s Canadian Financial Monitor reveals that in the last 48 months, the average Canadian mortgage has seen a significant 36 per cent increase. While the same percentage of households possess mortgages now as they did four years ago, about one third of the populace, the average mortgage balance has risen since 2006.
The last four years also saw a marginal 3 per cent increase in mortgage holders opting for variable rates over fixed. Still, the vast majority of Canadians select fixed rates on their mortgage products; about 70 per cent.
Continue reading “Rising Canadian Mortgage Balances could see Downward Shift”