Millennials more likely to inflate income on mortgage applications: Survey
Young Canadians are almost twice as likely to inflate their incomes on mortgage applications to get the homes they want, according to a new survey from Equifax Canada.
The report, which surveyed 1,545 Canadians across the country, found 19 per cent of millennials have fibbed on a credit or loan application, compared with 12 per cent of the general population.
“It’s concerning that so many younger adults we surveyed believe it’s okay to inflate their income to purchase the home they want,” Julie Kuzmic, director of consumer advocacy at Equifax Canada, said in a release.
“Fudging income numbers when completing a mortgage application is fraud. It also becomes a slippery slope for these people who may end up stretching themselves too thin.”
While prospective homebuyers may be applying for homes they can't afford, the survey also revealed 60 per cent of Canadians said they didn’t check their credit scores before approaching a lender about a mortgage, down from 68 per cent in 2014.
Kuzmic explained mortgage lenders look at credit scores closely, along with other pertinent information such as income, to determine an applicant’s ability to pay back a loan.
“A spotty credit history isn’t a good recipe for success to receive funding for what may be the largest purchase you’ll make,” she said.
Equifax noted credit scores range on a scale from 300 to 900 – with a higher score being more favourable – and that credit scores over 660 are considered good by most lenders.