Would You Lie For A Loan?

Australian households are among the most indebted in the world and the interest rate increases by the Reserve Bank will generate a big potential problem” for many people and the wider economy.

We have a big potential problem courtesy of the way we have run our housing system, for not just the last decade but for the last at least three decades.

Our housing system is only weakly governed by real housing policy objectives, that is, ensuring everyone can own or rent a decent affordable home. Instead, it is governed by objectives of wealth creation, and sometimes by concerns about financial system stability.”

Macro-economic issues like the rising cost of living, inflation and economic pressures are influencing trends in first-party fraud, with almost one in five (19 per cent) Australians believing it’s okay to tell a “white lie” and report having less debt than they actually have in a financial service or loan application.

The implications for financial stability as rates rise are potentially significant!

Go to the Walk The World Universe at

Find more at where you can subscribe to our research alerts

Please consider supporting our work via Patreon:

Or make a one-off contribution to help cover our costs via PayPal at:

We also can receive bitcoins at: 13zBL1oRib9VJu8Uc9zUGNhxKDBBgUpDN1

Please share this post to help to spread the word about the state of things….

Caveat Emptor! Note: this is NOT financial or property advice!!

Written by Walk The World


Leave a Reply
  1. Central Bankers lie about money creation and to quote the lord high admiral Jamie Diamond commercial bankers do even Gods work….I see no real foul here other than believing that the system we have is real. Hey how about those non representing representatives leading us off a financial cliff ?

  2. Mortgage brokers and banks don’t care about lies in a rising market . If the shit hits the fan we will get another expensive royal commission. There will be a lot of finger pointing, the odd scapegoat and a raft of new policies that never see the light of day .

  3. You're asking this question to an Australian? Maaaate.. Surveys. 1 in 5 eh. Hmm. If you're prepared to lie on a loan application do you think you are prepared to lie when you are asked whether you'd lie on a loan application. Maaate. You really are the middle class Englishmen, not in New York, but in Austraya mate. Mr. North deary me, you really are endlessly entertaining.

  4. 1 in 5 borrowers that own up to lying is bad. Of greater concern are the 4.9 in 5 commission driven mortgage brokers who lie on behalf of borrowers (with or without their knowledge or consent).
    And brokers are the intermediary in most bank loans these days.

  5. Just don't borrow what you can not afford this is why this country is headed over the Cliff , the average person would know how to save for something , just put it on the credit, and pay 3 times the price for the item, in my day you put it on the wish list or as most used lay-by, It will be very interesting were this Country goes in 2023, one thing Superanuation is turning to 💩.

  6. Anyone with half of brain can see where this is going…central banks will keep inflating…people will not have the money to buy groceries… liquidity crisis is coming!

  7. Turning property into a financial asset and an almost guaranteed path to wealth creation is all the incentive needed to push otherwise honest people to tell a white lie or two on a finance application. Can't blame them really. Were the powers that be really unaware of all this? I highly doubt it, as they've likely been swimming in this wealth creation too. The tides going out fast though and it looks like it might all come undone soon, and what a mess it'll be!

  8. No but my boss did. He signed a letter that said I worked Saturday mornings which got me over the thresh hold for the mortgage. It was a narrow band between too much and not enough to qualify for the govt. loan. My wife's income wasn't allowed to be included. By the time we took possession of the house we had saved enough to pay the amount for the second mortgage needed. I could pay it on my own now. It was a known practice back in the 70's. We had no children until 3 years later.

  9. Thanks Mr. Martin…well it's that time again kiddies…look at the illustration and say…World leading Private debt…World leading Property Bubble and World leading Immigration…and so…it's all good…right?

  10. Correct, correct…correct. All points by you and others (Chris Martin) bang on!

    We have been playing in a playground created by others for 30 years now..thinking it is our playground and we are entitled to it.

    But one day we find the playground collapses due to no maintenance, and wood rot and metal rust has taken its toll. Never mind the injuries to the unlucky who were on the playground in those final moments when it broke…but the rest who used it will feel empty.

    The good ol Aussie she’ll be right mate will surely be tested over the next 10 years…I am looking forward to seeing how our “mate ship” holds ip

  11. So what happens to those who don't lie? Are we given the hard end of the stick in anticipation of a lying application?

    Is my interest rate higher to factor in the potential risk because the financial institution cannot immediately confirm if I'm lying or not?

    No debt, 100k in US stock, 50k in sellable 'toys', full time employment the whole way through the pandemic and still current, and low rent due to sharehousing and St George Bank would not approve a credit card for me with a limit of their choosing(minimum just $500)!
    Is it just me or does that sound a bit ridiculous? 🤔

  12. There has been plenty of fraud, just look at western Sydney house prices vs income, it just doesn't add up
    PS, tried buying a home in western Sydney after paying first home off, have 6figures in the bankand , according to ATO, I am in top 2% income bracket. I couldn't compete at auctions
    Either I am poor or liar loans have been rampant
    Wish everyone best of luck, I'm going to wait until 6months after interest rates stop rising

Leave a Reply

Your email address will not be published. Required fields are marked *