Liar Loan

The term liar loan is used colloquially in reference to state income loans (also known as no doc loans). A liar loan is a mortgage – and therefore secured by collateral, making proof of income unnecessary.

When an applicant applies for a liar loan, they state their income on the loan application. The lender does not verify the borrower’s income. No salary statements or other proof-of-income documents are required.

This type of loan is useful for borrowers who are unable to provide salary slips because they are self-employed and for people who prefer not to disclose sensitive information about their income to lenders.

Liar loans are not offered by Swiss lenders. In Switzerland, borrowers must meet affordability criteria in order to be approved for loans or mortgages.

More on this topic:
Swiss mortgage comparison

About is Switzerland’s independent online comparison service covering banking, insurance and telecom. More than 100 unbiased comparison tools and calculators are available on, along with useful financial guides and timely news. The comprehensive comparison tools help you to find the right insurance policies, bank accounts, credit and prepaid cards, loans, mortgages, trading accounts and telecom products for your needs.