The bank's annual survey of around 900 people who took out a mortgage over the past year showed that 41 per cent submitted loan applications that were not completely factually accurate — so-called "liar loans".
‘Liar loans’ on the rise as risky mortgages drive house price boom
'Liar loans' on the rise as risky mortgages drive house price boom
By business reporters Michael Janda and Gareth Hutchens
Based on a survey of around 900 borrowers, UBS estimates that 41 per cent had inaccurate mortgage applications.(ABC News: Elise Pianegonda)
Australian home prices have surged almost 20 per cent over the past year, and investment bank UBS has warned that a record level of "liar loans" as buyers "chase the market" could be one reason why.
Key points:
A record 41 per cent of loan applications contain factual inaccuracies
The most common fudges are under-representing living costs and financial commitments
The banking regulator says it has seen "no obvious poor-quality lending"
Simpler lending rules for home loans
Simpler lending rules for home loans and credit to free up the economy
Customers will be promised faster access to loans under simpler rules that aim to free up credit and lift the economy by ending confusion over lending obligations for banks and finance companies.
Treasurer Josh Frydenberg will overhaul the laws governing mortgages, personal loans, credit cards and payday lending to streamline decisions on whether customers can afford the loans they seek.
Treasurer Josh Frydenberg will overhaul bank lending rules to make it simpler to decide mortgages and credit card lending.CREDIT:ALEX ELLINGHAUSEN
The changes respond to growing concerns over court disputes and the duplication of regulators in home and personal lending, sparking fears that restrictive rules on credit would curb economic growth.
With the government preparing to unveil tax cuts and spending measures in the October 6 budget, the lending reforms are intended to improve access to credit fro…
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