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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The risk of ‘liar loans’: Can overstretched borrowers cope with higher interest rates?Analysis: Millions of Australians have pushed the envelope on mortgage applications to get a foothold in the housing market. Now they face the threat of higher interest rates | clancyyeates clancyyeates May God continue to bless you Julie_fx_trader, I never believe it's going to work out because I have lost alot in different places I Know one day they will face the judgement. I really appreciate Julie_fx_trader clancyyeates The greatest economic catastrophe since the Great Depression was only 10yrs ago and was caused by “liar” loans, otherwise known as subprime loans. This can’t be a serious issue surely?! I’m gobsmacked. This obviously was never taken seriously in Oz clancyyeates
Source: smh - 🏆 6. / 80 Read more »
Commonwealth Bank and ANZ match the Reserve Bank’s cash rate riseThe Reserve Bank of Australia's decision to raise the cash rate has forced the Commonwealth Bank and ANZ to pass on the increase to their customers by raising variable home loan interest rates by 0.25 per cent. Forced them to hmmmm 🧐 Why are comments being deleted
Source: SkyNewsAust - 🏆 7. / 78 Read more »
Big four banks hike rates, as ANZ half year profit jumpsAll four big banks increase their interest rates on standard variable home loans by 0.25 per cent following the Reserve Bank's first rate rise in more than a decade. Big data banks saved a lot during last year 🤣🤣🤣 Yeah... Cost of living going up so they raise the cash rate so the banks raise interest rates, which in turn causes the cost of living to go up.
Source: abcnews - 🏆 5. / 83 Read more »
‘The entertainment budget would take a hit’: Homeowners decide which expenses to cut“I’d have to cut back on certain things,' said a Croydon homeowner. Many Australians face the prospect of trimming their budget in light of the interest rate rise. auspol ausvotes We can now see that the strong economy has little to do with Morrison Government policies. It was a result of record low interest rates and record debt run-up. As both now hit limits we are left up the creek without a paddle. There's your superior economic managers.
Source: theage - 🏆 8. / 77 Read more »
CBA and ANZ match RBA’s hike in interest ratesBreaking: The Commonwealth Bank and ANZ Bank will pass on the full value of the Reserve Bank’s increase in interest rates to mortgage customers as the era of ultra-cheap home loans comes to an end clancyyeates | RBA rates mortgage
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CBA and ANZ match RBA’s hike in interest ratesThe Commonwealth Bank has passed on the full value of the Reserve Bank’s increase in interest rates to mortgage customers as the era of ultra-cheap home loans comes to an end | clancyyeates clancyyeates Sickening lol clancyyeates Australians will be forced out of their homes due to high interest rates and insurance due to Scotts policies. Scotts, LNPs 20yrs of stymying/blocking renewable energy thats going down, Scotts fossil fuels which go higher every day contributing to high interest rates & insurance clancyyeates Surprise surprise. Couldn't cut the full amount, but they sure can pass on the full amount when the rate goes up.
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