In an era of booming house prices and fierce competition for properties, tales of Australians pushing the envelope with their mortgage applications – usually by fudging expenses to maximise borrowing power – have not been uncommon.
Investment bank UBS released a survey last month looking at how rigorously banks assess borrowers, which included asking if people fudged some part of their loan application. The survey of 860 people concluded that 37 per cent of the mortgages on Australian banks’ books were misrepresented loans, down from 41 per cent a year earlier, suggesting a “modest” improvement in lending standards.
On the more general issue of people lying on their loan applications, Elliott said banks were required by law to check the information provided by customers, which includes going through bank statements with a fine-tooth comb.“While it’s sad that people feel the need to mislead or lie on their loan applications, we do not take our customers at their word, and actually the law requires that we do not,” Elliott said.
North, who has long had concerns about the high level of household debt, worries that rate hikes could be part of a “perfect storm” slowly brewing in housing, alongside rising cost of living, falling house prices, and stagnant income growth. North says his monthly surveys of 4500 people show more than a third have problems with their cashflow, though he also says it will take a couple of years for the full extent of mortgage stress to emerge.
ANZ’s Elliott described his bank’s credit quality as “amazingly benign” on Wednesday, saying 0.7 per cent of its borrowers were behind on their home loan, compared with 1 per cent normally.
Millions supported stealing of US elections, clueless how that will cause economic wreckage in Australia. Fixed your title
Under the Morrison Government the cost of living is out of control LNPMassiveFail
Tricky....? Well if labor win all the property space under bridges will be gone in no time.
Yes but my 10 houses are sky-rocketing in value. 😀 Vote Liberal. AusVotes22
Fair Work Commission are about to meet to set the new Minimum Wage. “Woolworths and Wesfarmers backed lifting pay for 320,000 of its workers to keep pace with inflation, which could mean wage rises of 3.7% from 1 July” Aged Care maybe 15%-20% rise. This will soften the landing.
I wondered what variable meant
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