Will $500 billion in ‘Liar Loans’ trigger the Australian Housing Crisis?

A recent survey conducted by Investment Bank UBS has led to fears that a mortgage meltdown could trigger an Australian Housing Crisis. UBS have concluded that out of the 900 loans that were used in the survey, 67% were factually incorrect, therefore resulting in an estimated $500 billion in ‘liar loans’. UBS then went on to state that “the level of liar loans meant the impact on the broader economy from a housing downturn was likely to be more severe than anticipated by the banks”. The most common inaccuracies were overstating income and understating living expenses, the survey found. This […]

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