RBC and BMO were responding to concerns following the dismissal of a number of mortgage brokers by Home Capital due to irregularities.
The lenders said that when incidents of fraud are highlighted within the industry they step up their own scrutiny to look for similar incidents.
They also have an ongoing procedure for spotting things such as inflated incomes on home loan applications.
Both of the banks said that when processing applications calls are made to applicants’ employers to verify income claims.
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate
Investment Hot Spots:
Grande-Vallée, Weymouth Mills, Birsay, Eldon, Salem
Two of Canada’s largest mortgage lenders say that their procedures for spotting so-called ‘liar loans’ are robust.