As banks clamp down on money laundering, securing a mortgage becomes a more formidable challenge for the average person. Recently, TD Bank faced a hefty $9.2 million fine for not reporting suspicious transactions. In response, banks scrutinize customer transactions more thoroughly, meaning more hoops for potential homeowners. Expect to provide extensive paperwork and detailed accounts of every dollar of your down payment—it’s a lengthy and costly process, often requiring the assistance of paid financial advisors.
This October, things will become even more complex when mortgage brokers must adopt similar rigorous scrutiny standards.
Money laundering has broader implications beyond inconveniencing buyers, perhaps even driving up housing prices in some markets. Over the last decade, an estimated $30 billion in illicit funds has inflated Ontario’s real estate market.
Our tip? Prepare early by meticulously maintaining all necessary financial records to streamline your mortgage approval process.