Applying for a mortgage can be a stressful process, and many customers are tempted to stretch the truth a little when completing their applications. Believing that a white lie or an absence of the immediate truth wouldn’t matter, or that the lender wouldn’t find out, customers may not be as truthful as they should or omit relevant information from their mortgage application forms.
How serious is it if you doctor a document?
Illegal and entirely pointless, doctoring a document such as a mortgage application is simply not worth it, yet recent surveys discovered that as many as 12% of Canadians provided false information on a credit or loan application. A significant percentage of those surveyed believed that lying on a mortgage application was a victimless crime and that exaggerating income was an acceptable thing to do.
Anything less than the truth on your mortgage application could result in you being accused of fraud, since lenders can be obligated to report any inconsistencies and/or lies when they uncover them. In some instances, this can result in the borrower being blocked from obtaining a mortgage elsewhere, especially if they seek default-insured financing.
And if you think that lenders won’t bother verifying the details on the form, you can think again!
What can happen if you’re caught lying on your mortgage application?
The consequences of exaggerating your income to increase the likelihood of being approved for a loan, can be extremely serious, and can make it harder for the individual to obtain financial products in the future. Mortgage providers carry out rigorous checks, so the chances of your innocent lie being found out are high. Aside from that, if you’re caught providing fraudulent information on a mortgage application, you could be penalized with a significant fine or even receive a prison sentence.
Is it worth it?
No, it’s absolutely not worth it. Even if you believe it to be a victimless crime and never get caught, lying on any financial document is never recommended, and if you need help with your financial planning or finding a lender that will approve you for a loan, try consulting with a financial advisor or mortgage broker, who can help you obtain a loan without resulting to fraud.
You may be desperate to secure a loan so that you can buy a new property, but you should never resort to dishonest or illegal methods to achieve your goal. Work with a mortgage specialist and they will search among a variety of lenders to find one that will agree to your terms and grant you a loan in your best financial and personal interests.
