MPC urges Ottawa to move ahead with CRA income verification

Mortgage Professionals Canada is urging the federal government to move ahead with a CRA-enabled income verification tool to help combat mortgage fraud, while supporting proposed measures to expand mortgage insurance and funding capacity.

Jasmine Toor, MPC’s vice-president of public affairs, told the House of Commons finance committee during its Oct. 8 study of Bill C-31 that a secure system allowing income to be verified directly with the Canada Revenue Agency, with borrower consent and appropriate privacy safeguards, would make the mortgage process more reliable.

“It would help combat mortgage fraud, reduce reliance on documents that can be altered or falsified, reduce unnecessary paperwork for Canadians, and give lenders greater confidence in the information that they use to make lending decisions,” she said.

Toor welcomed the committee’s recognition of the need for a CRA-enabled, taxpayer-consented income verification tool in its recent pre-budget report and urged Ottawa to proceed.

MPC has advocated for the measure alongside the Canadian Bankers Association, Mortgage and Title Insurance Association and Canadian Credit Union Association.

The federal government announced plans to consult on a CRA income verification tool in Budget 2024. The 2024 Fall Economic Statement subsequently reported that consultations were underway, with implementation targeted to begin in early 2025.

However, as CMT reported in May, the CRA said implementation depended on securing funding and the necessary policy and legislative authorities. At the time, the agency estimated that initial steps could be delivered approximately 12 to 18 months after the required authorities and safeguards were in place.

Supporting mortgage funding and housing supply

The association also backed measures in Division 7 of Bill C-31, which implements certain provisions of Budget 2025, to expand mortgage funding and insurance capacity.

Toor supported a proposed increase in the securities guarantee ceiling, saying greater securitization capacity could support a more diverse lender market and greater competition. “Not every mortgage lender funds itself through deposits. Many lenders rely on securitization to compete,” she said.

She also welcomed a separate increase in the aggregate protected loan limit from $300 billion to $500 billion, saying it would provide greater capacity for privately insured mortgages and support competition among mortgage insurers and the lenders that rely on their coverage.

MPC also supported allowing private mortgage insurers to insure residential properties with up to eight units, up from four.

Toor said expanding eligibility would give buyers of five-to-eight-unit buildings access to insured mortgages, which typically offer lower interest rates than commercial mortgages. That could make smaller rental and multi-unit housing projects more viable.

“This is a practical change that can help unlock financing for smaller multi-unit housing projects,” she said.

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Last modified: October 13, 2026