Many low doc loan customers fib about their income
Test audits by the Australian Taxation Office have found that the income declared to a lender by borrowers taking out a low doc home loan exceeds their declared income for tax purposes in 70 per cent of cases. According to the Australian Prudential Regulation Authority, between 15 per cent and 20 per cent of mortgage lending at present is low doc. The most aggressive low doc loan appears to be marketed by Mobius. The lender doing the highest proportion of them is Adelaide Bank, 40 per cent of whose new loans are low doc.