Homebuying Step by Step: Your Guide to Buying a Home in Canada
Do your research! It’s important to research the people who will help you buy your home. Ask real estate agents, lawyers or any other housing professionals for their references and qualifications. The more information you have, the better prepared you will be to make the best decision.
Use the Your homebuying team worksheet in Step 4 of the workbook.
Protect yourself against mortgage fraud Mortgage fraud is a serious offence. It occurs when people intentionally misrepresent their income and assets to get approved for a mortgage they don’t actually qualify for. It is also fraud for someone with bad credit to use someone else’s good credit to apply for a mortgage. People who participate in this type of fraud can be found liable or even criminally responsible. Protect yourself from becoming a victim of—or an accomplice to—mortgage fraud. • Never deliberately misrepresent your information when applying for a mortgage. • Never accept money, guarantee a loan or add your name to a mortgage unless you intend to purchase the property. • Use only licensed or accredited mortgage and real estate professionals , and only work with people you trust. • Never sign legal documents before reading them thoroughly and being sure you understand them. • Get independent legal advice from your own lawyer or notary. • Contact your provincial land titles office and get the sales history of the property you want to buy. Have the property professionally inspected and appraised. • If a deposit is required, make sure the funds are payable to (and held “in trust” by) the seller’s realty company or a lawyer or notary. If a deal sounds too good to be true, it probably is.
For more tips on how to protect yourself, visit cmhc.ca/mortgagefraud .
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