A strong majority of Canadians believe mortgage fraud is making it harder for honest buyers to compete in today’s housing market, according to a new national survey conducted by Pollara Strategic Insights for Mortgage Professionals Canada (MPC) and the Mortgage and Title Insurance Industry Association of Canada (MTIIAC).
The poll found that 78% of Canadians say mortgage fraud creates an unfair playing field, while 64% believe it contributes to higher home prices. More than half of Canadians (58%) report being concerned about mortgage fraud overall, a number that rises to 65% among those planning to buy a home within the next five years.
“Canadians want a fairer, more transparent system that protects honest homebuyers,” said Lauren van den Berg, President and CEO of MPC. “Mortgage fraud not only undermines trust, it drives up housing costs for everyone. Income verification through the CRA is a practical solution that will strengthen trust in the housing market and help ensure everyone plays by the same rules.”
The poll also points to strong public backing for policy solutions, with nearly two-thirds (65%) of Canadians saying the Canada Revenue Agency should play a direct role in preventing fraud, while 72% would support allowing their lender or mortgage broker to verify income directly with the CRA.
Recent data from Equifax Canada found that overall mortgage fraud has eased since the pandemic, but that cases are climbing among prospective first-time buyers. The data shows that consumers without an existing mortgage were nearly twice as likely to commit fraud as current mortgage holders at 0.31% compared to 0.19%.
The data from Equifax also found that falsified financials remain the biggest concern, making up just over 30% of fraud cases in late 2024. Misrepresented income or fake documents such as pay stubs and tax slips appeared in more than 95% of applications flagged as fraudulent.
Where income verification stands today
Calls for stronger safeguards have grown louder in recent years, with Mortgage Professionals Canada at the forefront of pressing Ottawa to prioritize a secure digital income verification system. The association has consistently argued that, with borrower consent, such a tool would allow lenders and brokers to confirm income data directly from CRA records, closing the gap that currently allows falsified documents to slip through.
The federal government committed in Budget 2024 and the Fall Economic Statement to begin rolling out such a system by early 2025. The CRA later held consultations with industry groups and received more than 1,600 responses. The feedback showed strong support for a digital tool, with participants pointing to fake or altered income documents as the most pressing fraud risk.
The CRA report noted: “Participants were clear that a tool created by the CRA that allows mortgage professionals to verify the validity of a borrower’s income would streamline the mortgage approval process and reduce the risks of fraud significantly.” Industry members also stressed the need for real-time access through a secure portal or API, multiple years of income history, and detailed data beyond a simple yes/no response.
Despite broad agreement on both the need and the solution, Canadians are still waiting. In its latest release, MPC said, “We call on the federal government to re-prioritize this initiative and move quickly to deliver a digital income verification tool, setting a clear timeline and pathway in Budget 2025 to build upon the important progress already made.”
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Last modified: September 8, 2025
