They have a bunch of multiple choice questions to prove identity, like which one of the above seems like a correct county you might have resided in etc. 

If you start in summer you will lose half of that year on your tax returns and it will make it seem as your job doesn’t pay well.Of course you would need your employer to falsify your start date, but most businesses will do to help their employee achieve his homeownership dream.The fact that Canadian banks can’t verify tax returns makes it very easy for mortgage fraud. 

Almost seems like there should be some type of insurance policy against electronic fraud.

Ignoring the ethical ramifications (and likely fraud) of leaving a homestead exemption on a property you no longer live in, there is no requirement of maintaining a homestead exemption on a property under Sec 121. 

Claiming that it is for the purpose of a loan and then not living there would be mortgage fraud.

@Carrie AlluriWould I be willing to commit mortgage Fraud?

Get that down to a 5 or 10k range with identical properties.

I don't think I can employ this strategy immediately because I have to stay in my current home for a year before I can get another conventional loan to make this strategy work (and avoid loan fraud?). 

Stay away from Facebook lenders, the fraud quotient is too high. 

Even an identical item being sold, prior will not determine the value.