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"
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)
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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