There's evidence of a three-fold increase in 'liar loans' on home loan applications, according to new data. More people trying to break into the property market are either overstating their income or understating their expenses but the banks are catching them out.
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The data comes as hundreds of thousands of Australians are about to hit a mortgage cliff, rolling off low fixed rates to higher variable rates, making their home loan repayments unaffordable. With 13 cash rate hikes since May 2022, it's become harder for some borrowers to refinance.
Some homeowners who were stuck in a mortgage prison are finding relief as banks loosen the stress tests applied for home loan refinancing. Some lenders, including three of the big four banks, have reduced what's known as the 'serviceability buffer', thereby offering lower rates for some people refinancing. But most don't get that better deal, sparking calls for the same rules to be applied for everyone who needs to refinance.
There's fears that without relief, the rates of arrears - that is borrowers missing mortgage repayments - will shoot up, which will in some cases result in defaults and forced repossessions of homes. The refinancing hurdles comes as financial markets bet the Reserve Bank is expected to leave interest rates on hold at its December meeting at 4.35 per cent, giving borrowers a slight reprieve ahead of the festive period. But some economists think the central bank may move again in February when it meets for the first time in 2024.
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30 сен 2024
