Major banks start to share mortgage data under CCR

From
Mike Laing

Mike Laing

Consumer education website, CreditSmart, has confirmed NAB has started sharing information on mortgage payments with credit reporting bodies under the Comprehensive Credit Reporting (CCR) regime, with other major banks to follow suit.

In September last year, a major CCR milestone was achieved with all Big Four banks sharing 50% of their customers’ ‘positive’ credit information – largely Credit Cards and Personal Loans accounts. With a commitment to supply the remaining accounts by September 2019, NAB is taking the lead having now started sharing mortgage accounts from this month.

Mike Laing, CEO and Chairman at the Australian Retail Credit Association (ARCA), which founded CreditSmart, said: “Having a home loan is a major financial commitment, so the inclusion of mortgages in CCR data is a positive move for consumers who have a strong history of making payments on time.

“Demonstrating strong credit health in the past by being disciplined with repayments will be an advantage to consumers looking to take out another mortgage or a personal loan. This is particularly important as banks adopt more stringent lending processes following the Royal Commission,” he added.

What should consumers do?

Consumers who are keeping a close eye on their credit history will see these new account details reflected in their credit report.

“Under the new system, up to two years of monthly home loan repayments will be on your credit report. You should check your credit report at least once a year to make sure there are no errors or inconsistencies because there is a high chance this will affect your next application for credit.

“Another point to note is that your mortgage loan limit will be reported and visible on your credit report. This along with the limits on other accounts you may have (such as credit cards) and your repayment history will give lenders a good view of the overall amount of debt you have been able to handle,” he continued.

More comprehensive credit information gives lenders a better picture of whether you are in a position to take on new debt, and whether you manage your debt responsibly. It means that if you’ve been regular with paying your accounts, that could increase your chances of getting a loan and a lower interest rate.

For information on how to optimise your credit health, go to the CreditSmart website, set up by credit experts to help you understand how recent credit reporting reforms affect you.

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