According to an analyst from global financial services company UBS, the level of factually inaccurate mortgage applications has grown from 27% in 2015 to 33% in 2017.
Like Canada, Australia has skyrocketing house prices and high levels of household debt and it seems some Aussies are opting for risky behaviour to get a home, fearing that homeownership is moving further out of reach.
The dishonest applications – dubbed ‘liar loans’ - amount to around $500 billion, 18% of all Australian consumer credit.
Analyst Jonathan Mott has warned his clients that he is “very cautious” about the medium-term future for the sector following his anonymous survey of mortgage applicants.
The poll revealed that many applicants said that their mortgage advisor has encouraged them to misrepresent their income.
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A third of mortgages approved by lenders in Australia were based on information that was less than honest.