It's the old wishful thinking and hearing what you want to hear, probably not a big problem for most until the loans start to relapse to the new rates. A lot of people got drunk on the low interest rate and bought all kinds of toys from equity on their homes that they didn't need, and now they'll be lucky if they get half of what they originally paid.
People lie on their loan applications and conditions also change, like a family of 2 turns into a family of 5. When I was in the mining sector, your job was about as stable as a $5 watch, when contracts fell through the first thing you would see is people on their phones trying to cancel all their purchase orders.
I guess I'm expecting too much of people's critical thinking skills these days. My main point though is the media's roll in getting this information out to the public yet their lack of responsibility to get it out accurately. For example as property prices ballooned few said the price rises were "crazy, unsustainable, going to come back down" etc but the prices coming down are "crisis, crazy, dangerous etc".
I'm going through the pre-approval for a home loan currently, the lady at the bank noted "your expenses seem quite high?". Fark me, I'm a total scrooge! Everyone I know at work (on similar or less pay) has way higher living expenses than me. People must lie their arse off when doing these applications.
"What is this business.. Hope, is it? There seem to be weekly transactions..."
The bank already does this for you. It's called a "stressed rate".
It's built into the assessment process. +2-3% stressed rate. Banks risk positions are covered by LMI on high LVR loans and by equity in sub 80% loans. Realistically, in 99% of cases, the bank can get you out of a house and have it sold before they take a loss. So banks don't give a shit past looking to being responsible in the eyes of the law (the nccp act to be precise).
She's comparing you against a HEM benchmark. The HEM benchmarks are actually exceptionally low.
Fuck oath they do, my brother is headed towards bankruptcy because of it.
Part of this is as much as the lenders fault as a lying customer. The bar for verification of the information is historically pretty low. Some things are also difficult to verify easily. A common one is not disclosing dependents or under disclosing them. Depending on what documents the bank has asked for or the customer has provided you could be married, single income family and have 5 kids and on paper you're a single, no dependents with a reasonable wage.
You shouldn't have told her you were a mountain biker...
Sometimes it is bad luck, I don't think many expected that the price of living would have gone up so much in such a short amount of time. People need to blame themselves at the end of the day, nobody else to blame hear. If you go to the tabloids for financial advice, nobody can help you. When the government gave money out during the covid period, people went on crazy spending sprees, using their super to buy a home or investments. These things don't pay themselves off like people tend to imagine, let alone unplanned maintenance and repairs.
Lots of ways to fudge the system, I've got friends that don't pay any child support but buy their kids gifts, and even easier if you run a small business.
yeah there is lots of ways. I just didn't have all day to list out a manual for how to do it
I'm actually starting to wonder if that was part of or the underlying purpose of the invasion: destabilise world markets, gum up exports of a huge range of stuff from fuel to food, then sit back and watch as the decadent capitalist markets crash and burn and a whole bunch of Africans starve.
Fairly good chance that was a contributing motive.
