Liar loans

I have a friend that lied on his loan application about how much other debt he had (car, credit cards etc). He got the loan approved from a major bank and he's all confident he won't be caught as long as he makes his repayments on time. I can't imagine he'll go long before he's caught? It makes me wonder about the stability of the Aus financial system with this sort of thing going on. Reminds me of the US pre-GFC.

 

He probably won't be caught.

People have been lying for years because one bank can't see what other debts a person has with other institutions or individuals.

 

I hope he goes to church today and confesses all.

And then makes a small donation when they pass the plate. All should be fine.

 

So long as friend makes repayments on time all will be ok. Your friend is the one taking the risk that all will go well, no unexpected unemployment, health or other problem.

Our son bought his first home through the often maligned 105% home loan available at that time. Luckily for him he bought into a rising market, all went very well and this first home was a springboard to much bigger and better investments for him and his family.
Marg

 

everyone lies deliberately or not

credit card limits, monthly living expenses, how long youve been living at an adress

 

Nah I totally disagree,
You may? You may know some who do?
Others might inadvertently? I don't care?

But some of us know our financials down pat & just lay it on the line exactly how it is.
Being truthful is a cornerstone in life to more than just financing a loan.

 

I think he was lying!

 

Good as then they can see what is really happening and loosen up lending to people who do things by the book!

 

Well lucky I wasn't asking for your opinion

Well. Thankfully whether you care or not doesn't affect me or other people considering applying for loans

Expenses are estimates.
Your existing card balance can be easily manipulated by moving funds
People use their spouses card or even supp cards
People have salary packages which has expenses built into them

 

Bit of a conundrum, just had to decline a loan because a customer was ‘too’ truthful about what they actually pay on their credit card each month as opposed to ‘getting away’ with the minimum required.
Was the difference between a yes and a no.
Difference in being able to get into their 4th Property or not.

Or an individual may spell it out truthfully but if using another person to submit, be it a PAYG banker or a broker, it may not end up in front of an assessor that way.

 

I have heard some very creative things from clients on how they got approved for a loan. Not through me but bank direct or another broker. None have been caught out as far as I am aware.

The maxim is true that once a loan is formally approved and you make your repayments no one will bat an eyelid.

I agree, it is not uncommon what some one declares verbally to be what the facts are once all supporting docs are collected and cross referenced.

I believe this will be a thing in the future meaning loans will be assessed/priced according to individual profiles.

 

isn't this information available on a persons credit report? etc loans from different institutions and amounts?

if he did get caught what would the bank do?

Cheers, Elives

 

At the moment a credit report only shows credit applications applied for in the past 5 years.

 

That's what mine shows but it doesn't even say it if was successful or not. I have a loan on my credit file that was approved but I turned it down when my original lender beat the rate for the new loan. So, the hit on my credit file shows I applied for credit. It doesn't say if the application was successful. It doesn't show whether I actually took the loan.

 

This is the case and brokers often get questions from lenders about l
Explain credit hits

 

Thats the problem. Whos book?

 

i'm confused by this because i remember changes taking place in 2014 to credit files which allowed banks to access further information etc amounts and terms.

What is Comprehensive Credit Reporting?