A big four bank is now sharing information on mortgage payments with credit reporting bodies.
The action taken by NAB is in accordance with the Comprehensive Credit Reporting (CCR) regime, implemented on 1 July 2018 with the intent to include positive data on credit reports so that lenders have a more complete idea of prospective borrowers’ finances.
The news was confirmed by consumer education website, CreditSmart.
“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,” said Mike Laing, CEO of Australian Retail Credit Association (ARCA), the organisation that founded CreditSmart.
“This is particularly important as banks adopt more stringent lending processes following the royal commission,” he noted.
Each of the big four banks were sharing 50% of their customers’ positive credit information by September of last year, with a commitment to supply the remaining half by September 2019. Having started sharing mortgage accounts from this month, NAB is taking the lead in adhering to CCR measures.
Customers will begin seeing new account details on their credit report if they haven’t already, such as up to two years of monthly home loan repayments and their mortgage loan limit.
The purported aim is to help lenders more clearly see how applicants have managed debt in the past and if they are positioned to responsibly take on new debt.
According to CreditSmart this is good news for those who have been regular with paying their accounts, possibly increasing chances of getting a loan or securing a lower interest rate.