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If you lied on your mortgage application, you're far from alone

Discussion in 'Property Finance' started by Terry_w, 7th Oct, 2016.

  1. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    If you lied on your mortgage application, you're far from alone http://ab.co/2cXyUE1 - via @abcnews
     
  2. TMNT

    TMNT Well-Known Member

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    ive lied on every loan application for my credit card limit......

    am I going to jail ;)
     
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  3. RiMo

    RiMo Well-Known Member

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    Are they the same people who would steal from a supermarket?
     
  4. Santaslayer

    Santaslayer Well-Known Member

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    I overheard my colleague ask his broker if he could use Photoshop on his payslip creatively...
    Doesn't he realise that he still loses if he can't meet the repayment?
     
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  5. Magnet

    Magnet Well-Known Member

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    How do they get these figures anyway? Sounds like the person writing the article may be telling a few porkies.
     
  6. willair

    willair Well-Known Member Premium Member

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    All they will do is just send you out a 100k limit credit gold card..
     
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  7. TMNT

    TMNT Well-Known Member

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    any agents willing to accept credit card as deposit ???? :)
     
  8. Scott No Mates

    Scott No Mates Well-Known Member

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    Only if the buyer pays the merchant fee ;)

    It's probably classed as a cash advance so paying interest form day 1.
     
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  9. JohnPropChat

    JohnPropChat Well-Known Member

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    I thought the new credit reporting system should prevent silly frauds like under reporting liabilities.
     
  10. MTR

    MTR Well-Known Member Premium Member

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    OMG I thought everyone did :p When we had the no doc and Lo doc prior to banks changing policy in 2008 ? it was common practice brokers Advised on the figure To meet serviceability. I never used Lo doc:) Them were the days.........

    Not anymore of course all above board


    MTR
     
  11. MTR

    MTR Well-Known Member Premium Member

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    As far as credit liabilities......Properties fall off the radar after x years
    Also not compulsory for banks to report? Second tier lenders well I doubt they will from what I have been told
     
  12. MTR

    MTR Well-Known Member Premium Member

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    .... to save 50 cents, that's a massive win x 52 weeks per year:p
     
    Last edited: 16th Oct, 2016
  13. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Nope - bank A doesn't know what you have with bank B.
     
  14. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    They don't know for sure, but they're starting to ask for the sort of info that would tell them. The CBA is asking for transaction account statements. They see a regular debit on there and they then ask about the debt and want a statement. A tax return is very revealing.
     
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  15. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Yes many are asking for existing loan statements too. But what I wanted to say is that banks cannot look up information about your relationship with other banks without the client supplying this info.
     
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  16. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

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    Most of the concerns discussed in the article are now part of "responsible lending" practices and wont or shouldnt get through the net IF the broker is following the new lending laws.

    An arguement could be put up the other way if you frame it right to say bank applications are more inaccurate than broker apps.
     
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  17. JohnPropChat

    JohnPropChat Well-Known Member

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    I was referring to this. I am not too sure if it's been fully implemented though. May be it's just for unsecured stuff.

    What is Comprehensive Credit Reporting?
     
  18. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

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    Its definitley coming and some banks are ahead of others in the process.

    It will apply to all forms of credit which would include utilities and telcos as this is technically a form of credit. Make your payments late and this could effect your rating and works the other way where if you do pay bills ontime it will improve your rating score.

    "Comprehensive credit reporting in Australia will, over time, allow licensed credit providers to access more comprehensive information that can help them make better lending decisions".
     
  19. Lollie

    Lollie Active Member

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    When you provide rental statements won't they ask about loans with those properties?


     
  20. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    The CBA and NAB do ask for statements for loans on those properties. These two lenders use specific data from those statements to assess your serviceability.

    Other lenders don't need the data in your statements to assess your serviceability as they use different methods (which are far more conservative).

    Keep in mind that all lenders have a fairly good idea of other mortgages as they do appear on your credit report. If you don't disclose these debts, they will ask about them. There's other things they can do as well, including title and mortgage searches.
     
    Last edited: 16th Oct, 2016
    Lollie likes this.