A Melbourne-based Chinese mortgage broking firm has agreed to change website and print ads that claimed a "100 per cent success rate" and that it could match interest rates offered by all the banks.
Elite Mortgage Brokers was prompted to change the Chinese-language advertisements after the Australian Securities & Investments Commission said claims made were misleading and deceptive, or likely to be so.
Elite Mortgage Brokers had said it was Melbourne's largest Chinese mortgage broker, had a 100 per cent success rate, was able to match all banks' interest rates and could give pre-approvals within 15 minutes.
ASIC said the brokerage could not properly substantiate the claims, and statements claiming a "100 per cent success rate" were likely to be misleading because they suggested that credit would be provided to all applicants.
Lenders or brokers that are subject to responsible lending obligations generally cannot claim that all applicants will receive credit, the regulator said.
"Doing so is either non-compliant with the lending laws or otherwise misleading or deceptive."
The crackdown comes amid a number of regulatory moves to cool the overheating property market in Australia, which is seen to have been exacerbated by an influx of Chinese capital.
Former Prime Minister Tony Abbott launched a policy requiring that from December, all foreign buyers will have to pay a $5000 fee to apply to buy property in Australia.
The Australian Taxation Office meanwhile is investigating homes suspected to be bought illegally by foreigners behind a front of other individuals or a labyrinth of company names and trusts.
ASIC deputy chairman Peter Kell said all representations made in advertising of credit-related products must be accurate and able to be substantiated to avoid consumers being misled.
"This extends to ensuring consumers from non-English speaking backgrounds are not misled or deceived by advertising in a foreign language," he said.
"ASIC monitors all forms of advertising and will continue to monitor advertising targeted at non-English speaking consumers. Where necessary, ASIC will take enforcement action."