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"
Experts warn against resorting to buy now, pay later loans for essentials during lockdown
Experts warn against resorting to buy now, pay later loans for essentials during lockdown
Experts warn against resorting to buy now, pay later loans for essentials during lockdown
By David Taylor
Experts warn that some Australians waiting on government support could be targeting by lenders.(ABC News: Kit Mochan)
Read more
Consumer advocates say some lenders are cashing in on those facing financial distress while under lockdown conditions.
Key points:The Consumer Action Law Centre believes lenders are taking advantage of people still waiting on government support
Financial counsellor Peter Thompson says he has spoken to people turning to buy now, pay later lenders to pay for essentials
Afterpay says it has never enforced a debt nor sold debt to a collection agency
Financial counsellor Peter Thompson has been field…
Mortgage costs to jump as interest rate rises loom, warns CBA
Mortgage costs to jump as interest rate rises loom, warns CBA ahead of Reserve Bank meeting
By business reporter Michael Janda
CBA is expecting interest rates to rise earlier and faster than many other institutions. (ABC News: John Gunn)
Read more
Australians could soon be paying more than $26 billion a year in extra mortgage repayments as interest rates begin to "normalise", but the Commonwealth Bank argues there are several reasons why most households will be able to cope just fine.
Key points: The RBA's interest rate decision will be announced at 2:30pm AEST, followed by a rare press conference from the governor No-one is expecting a rate rise, but there are likely to be announcements about the future of other measures that have kept mortgage rates very low CBA says households should be able to cope with a forecast rise in the cash rate from 0.1 to 1.25 per cent over the next two-and-a-bit years