Reported by the Australian Financial Review, overseas Chinese property investors are purchasing fraudulent documents such as dodgy bank statements and false pay slips for as little as $200.
According to the Australian Financial Review, one fraud included a “ludicrously obviously” fake loan application from a Chinese investor wishing to borrow $960,000 for the purchase of an apartment in Sydney.
Date: May 15, 2016
Published by: Mortgagee Property Limited
Reporter: Scott O Talbot
Category: Australian Real Estate
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By Phil McCarroll
More light has been shed on the reasons behind the recent crackdown on foreign borrowers by Australian lenders, with reports of the buying and selling of fraudulent documents for the use in mortgage applications. According to the AFR, recent instances of fraud include a “ludicrously obviously” fake loan application from Chinese investors hoping to borrow $960,000 to purchase an apartment in Sydney. The revelation of the black market documents seemingly justifies the recent decisions from a range of Australian lenders to restrict their lending to foreign borrowers or people relying on foreign income or currency. Major lenders ANZ and Westpac, among those who have pulled back their foreign lending, have also announced they are investigating mortgages they have written that were likely backed by fraudulent foreign-income documentation. While the issue of mortgage fraud by foreign borrowers had been in the headlines already, Ken Sayer, chief executive of non-bank Mortgage House, told the AFR the latest developments likely mean the issue is more widespread than many first thought.
“This is huge,” Sayer told the AFR
“It is much bigger than everyone is making it out to be. The numbers could be astronomical,” he told the AFR.