OPP Issue Warning About Mortgage Scam

Victims left with poor renovations, liens or a mortgage on their homes

The OPP is warning Ontarians about a door-to-door sales scam.

Ontario's Serious Fraud Office (SFO) says the scam often leave victims with poor renovations, liens or a mortgage on their homes. 

Fraudsters approach individuals at their door or by phone, and persuade them to buy a new appliance or have a service performed. 

These include air conditioners, duct cleaning, air cleaners, furnaces, water heaters, air purifiers, water treatment devices, or even bundles of these goods and services.  

After the service has been performed or device installed, a few things can happen, including the following: 

• The victim is contacted by someone claiming to be from a law firm offering assistance to exit previously signed contracts, remove possible liens and consolidate incurred debts. Victims are told they may be eligible to receive a grant for a significant amount of money IF they agree to exit the contract.
• If a grant was offered, the victim is contacted by a home renovation company and is persuaded to sign a contract and speak with a finance company on the phone. They are led to believe this is required to comply with the grant, BUT it is actually the process to have a mortgage approved on their home. 
• The funds are then deposited into the victim's bank account, leading the victim to believe they have received the grant, but it is actually funds from the home equity mortgage taken out on their home.
• The victim is told not to touch the money, as it must go toward renovations, as well as to the payments they were making for installed equipment.

The OPP has offered the following tips to protect yourself and your loved ones: 

• Answer your door only if you are expecting an invited guest
• Do not allow unsolicited visitors into your home
• Hang up on unsolicited phone calls
• Never share personal information or copies of any bills or financial statements
• Do not make a decision on the spot
• Do not sign blank documents
• Take the time to understand what you are signing and ask questions
• Do not answer questions on a phone/video call if you are being told the answers by someone else (if someone is telling you to answer 'yes'/ 'no')
• Check regularly on family or others who might be vulnerable to persuasive and persistent individuals
• Talk to the bank about a vulnerable loved one to prevent suspicious withdrawals
• Understand no renovations are free
• Visit Canada.ca to review green grant opportunities
• Ask yourself: why has this person offered to help and how do they know your situation
• Consider checking your credit history online at TransUnion and Equifax
• Look up your property on the Land Registry Ontario website
• Install video cameras around your home or video capturing doorbells

Anyone who believes they are a victim of fraud can contact their local police department or the Canadian Anti-Fraud Centre.