This answer is written by AI. The information provided in this response is intended for general informational purposes only and should not be considered as legal advice. Do not rely solely on the information provided in this response for any legal decisions. Consult with a qualified legal professional before making any decisions.

Is It Illegal to Have Someone Else Pay My Mortgage Under False Pretenses in Canada?

Question from turtle stomper, Is It Illegal to Have Someone Else Pay My Mortgage Under False Pretenses in Canada?

Answer from AI:

When it comes to financial transactions and agreements, especially those involving significant assets like real estate, the legality of the arrangements can often hinge on the details of the situation and the laws applicable in the jurisdiction where the transaction occurs. In Canada, the scenario where someone pays your mortgage under the belief that they are paying for their own house involves several legal considerations, primarily around fraud, misrepresentation, and contractual obligations.

Understanding the Legal Framework

In Canada, the legal system takes fraud and misrepresentation very seriously, especially in the context of financial agreements and real estate transactions. The Criminal Code of Canada addresses fraud under sections 380(1) for general fraud and 362(1) for making false statements. Misrepresentation, on the other hand, can fall under both criminal law (fraud) and civil law (tort of deceit or negligent misrepresentation).

Key considerations in this scenario include:

  • Consent: Whether the person paying the mortgage was fully informed and consented to the arrangement under the true facts.
  • Intention: Whether there was an intention to deceive on the part of the person receiving the mortgage payments.
  • Financial Loss: Whether the person making the payments suffered a financial loss or damage as a result of the misrepresentation.

Potential Legal Implications

If someone has been misled into believing they are paying a mortgage on their own house, when in fact the property does not belong to them, several legal issues arise:

  1. Fraud: If it’s proven that there was an intention to deceive, and the payer suffered a financial loss as a result, the person who misled the payer could face criminal charges for fraud.
  2. Civil Liability: Independently of criminal charges, the payer might have grounds to sue for damages under the tort of deceit or negligent misrepresentation, seeking compensation for any financial losses incurred.
  3. Contractual Disputes: If there was any form of agreement or contract between the parties, its validity and the terms might be challenged, potentially leading to further legal disputes.

What to Do If You Find Yourself in This Situation

If you believe you have been misled into paying someone else’s mortgage under false pretenses, or if you are accused of misleading someone in such a manner, it’s crucial to seek legal advice. A legal professional can offer guidance based on the specifics of your case and the applicable laws in your jurisdiction.

  • Consult with a lawyer who specializes in real estate and fraud cases.
  • Gather all relevant documentation, including any communication between the parties and financial records of the payments made.
  • Consider reporting the matter to the police if there is evidence of criminal fraud.


While having someone else pay your mortgage is not inherently illegal, doing so under false pretenses or through misrepresentation can lead to serious legal consequences in Canada, including criminal charges and civil liability. It’s important to approach any such arrangements with transparency and legal advice to ensure that all parties are fully informed and consenting to the terms.

For more information on fraud and misrepresentation in Canada, you can visit the Department of Justice and the Financial Consumer Agency of Canada.

Note: This information is intended as a general guide and should not be taken as legal advice. If you are involved in a situation like this, consulting with a legal professional is strongly recommended to receive advice tailored to your specific circumstances.

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