Quoting a UBS statistic, MyCRA Lawyers’ Graham Doessel noted 37 per cent of Australians, particularly those getting investment loans, are fudging applications to seem more favourable to a credit provider.
“Chances are, to date, most people will get away with lying, but that’s now changed, as banks are able to see your statements even from another bank when you give permission as part of your loan application,” Mr Doessel said.
Mr Doessel highlighted while it might seem like a harmless crime to fudge a few figures, it counts as fraud, which is a jailable offence in Australia.
He also stated banks are tightening regulations since the royal commission, meaning Aussies who lie on a form are more likely to be caught.
“Since the royal commission into banking, lenders, particularly the big four, have the ability to share information about potential borrowers,” Mr Doessel said.
“It means if you lie about your wage, the bank will be able to cross-check it against your statements; if you lie about your debts, they will be able to check with just about every lender in the country except your local loan shark.”
So, what if you have already lied? Well, you might be okay, provided you don’t fall behind in your repayments or don’t try to refinance.
“Even if you don’t get a 10-year stretch, being convicted of a fraud offence is a real pain in the backside. You might recall the last time you applied for insurance they asked if you’d been convicted of fraud. Well, now you will have to say yes; not only is it embarrassing, it means you won’t get insurance or at best have to pay a much higher premium,” Mr Doessel concluded.
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