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"
Old home loans costing Aussies
Old home loans costing Aussies 'thousands' by not switching
By Stuart Marsh • Senior Producer
Australians with older home loans are missing out on thousands of dollars in savings, a new report has found.
The Australian Competition and Consumer Commission (ACCC) today submitted its final report into the Home Loan price inquiry.
It found that borrowers are potentially spending far more money than they need to by not seeking a lower rate from their existing lender or switching to a new lender.
The Australian Competition and Consumer Commission (ACCC) today submitted its final report into the Home Loan price inquiry. (Supplied)
"A significant number of Australian home loan borrowers have not switched lenders for several years, yet they stand to save so much money by doing so," ACCC Chair Rod Sims said.
"There are factors standing in the way of home loan borrowers switching lenders, such as a lack of clear and transparent pricing, as well as inconvenience …
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