The Canadian housing market is not exactly easy to break into, especially for young people who might be looking to buy their first home. Unfortunately, that can possibly lead to some problems down the road, especially when it comes to applying for a mortgage. As it turns out, some Canadian millennials think that inflating their income is okay, even if it constitutes mortgage fraud.
According to a new survey from Equifax Canada, 23.4 percent of Canadians aged 18 to 34 answered that it was okay to lie about their income on a mortgage application in order to get the house that they really wanted. The national average for agreeing with that statement was 12 percent.
According to statistics provided to Narcity by a representative of Equifax Canada (via Select PR), men are more likely to think that lying on a mortgage application is okay than women (17.4 percent versus 7.7 percent). This sentiment also saw a higher response in urban areas than suburban or rural areas (15 percent, 11.7 percent, and 7.1 percent, respectively).
What makes this a huge problem is that providing a mortgage lender with any falsified information constitutes fraud.
"What some may see as a little white lie during the mortgage application process could have legal consequences or become a very hard lesson for people to learn if they cannot keep up with their mortgage payments," said Julie Kuzmic, Director of Consumer Advocacy at Equifax Canada in a press release.
Another 19.1 percent of Canadians aged 18 to 34 said that they have not been entirely truthful on a credit or loan application. When it came to knowing their credit, 43.3 percent of Canadians in the 18 to 34 group said that they did not check their credit history before applying for a mortgage. The national average was 60 percent.
Mortgage fraud is incredibly serious. According to the Financial Services Commission of Ontario, consequences of committing mortgage fraud can include lawsuits from the lender, getting fired or sued by your employer for falsifying their information, and even criminal charges. Getting the house you want may not be easy, but it can be made much worse by lying.
Disclaimer: Cover photo used for illustrative purposes only.