It takes about ten seconds.
Using AI to understand, summarise or organise your home loan documents is fine. Using it to change a bank statement, payslip or tax return is not: altering documents you give a lender can be fraud and lenders increasingly check documents directly with banks and employers. If your documents don't tell the full story, explain it instead.
Upload a bank statement, type a request and an AI tool hands back a version where the gambling transactions are gone and the balance is a little healthier. It looks perfect.
It's also fraud.
A new survey by comparison site OurTop10 found 18% of Australians said they had used AI to create or alter documents for a home loan. Bank statements were the most common (10%), followed by employment documents (9%) and payslips or proof of income (6%). Among Gen Z respondents the figure was 56%.
We don't think most of those people set out to commit fraud. Plenty were probably tidying up, summarising or trying to make sense of their own finances. But the survey's wording was "create or alter" and that's where the line sits.
How can I use AI safely on my home loan?
AI can be a useful assistant when you're getting ready to buy or refinance. Using it to:
- Build a household budget from your own spending
- Summarise where your money goes each month
- Write a list of questions to ask your broker
- Organise your documents into a checklist
- Explain a term you don't understand (then check it with us)
All of that helps. It's the same as using a spreadsheet or a calculator.
What counts as document fraud?
Anything that changes a document a lender relies on. That includes:
- Editing a bank statement, even to remove one transaction
- Creating or adjusting a payslip, employment letter or tax return
- Producing a fake rate offer from another lender to negotiate a better deal
- Changing dates, names, balances or amounts on any document
In industry-speak this falls under 'document fraud'. In plain English it means your application is based on something that isn't true.
How do lenders check documents now?
Lenders are reportedly dealing with around $4bn in suspected home loan fraud across the five biggest banks. They're responding. Expect more checks, more requests for statements pulled directly from your bank and a push for access to tax office income data. The Australian Banking Association has told a Senate committee that real income data is the best defence against fake documents.
In other words, an altered document is more likely than ever to be caught. When it is, the consequences can include a declined application, a loan being called in after settlement or criminal charges.
And here's the inconvenient part. Even if an altered document got through, you'd be taking on a loan you may not be able to afford. The checks exist to protect you as much as the lender.
What if my documents don
This is the real reason people are tempted. Maybe your statements show a few months of heavy spending. Maybe your income has changed recently.
Tell us. Seriously.
We deal with this every day. A big expense often has an explanation a lender will accept. A recent pay rise can be shown with the right paperwork. Sometimes the answer is waiting three months before applying. Sometimes a different lender's policy suits your situation better. None of those options are available if the problem is hidden.
Hot Tip: Many lenders now accept bank statements pulled directly from your bank through secure digital tools. It's faster, it saves you downloading PDFs and it removes any doubt about where the document came from.
Get your application right the first time
We'll help you work out what documents you need, what lenders will look for and how to present your situation honestly and clearly.
Talk to a Time Home Loans brokerThis information is general in nature and does not take into account your objectives, financial situation or needs. Consider whether it is appropriate for you and seek professional advice before making any financial decision. All loans are subject to lender approval, terms and conditions.
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Frequently asked questions
Yes, for things like summarising your spending, organising documents or drafting questions for your broker. Don’t upload documents to tools you don’t trust and never use AI to change figures or remove transactions.
Altering documents to mislead a lender can be fraud and can lead to the loan being declined, cancelled or reported. Lenders can verify statements directly with your bank.
Tell your broker. One-off spending or past habits can often be explained. A broker can match you with a lender whose policy suits your situation.
