Open Banking and how it could affect you
Looking at a new loan or refinancing in 2019? Comprehensive Credit Reporting and the new Open Banking world could make your mortgage approval easier.
The way Australian lenders assess borrowers continually evolves. In 2018, the major banks began Comprehensive Credit Reporting, including providing “positive” information to credit reporting agencies about borrowers, such as how often they pay bills on time, as well as more detailed information on credit accounts such as dates opened and closed, credit limits and the type of credit provided.
In 2019 this is stepped up further with the major banks beginning to provide access to data regarding your credit and debit cards, deposit and transaction accounts, and later in 2020 on mortgage accounts.
Why does this matter?
- It’s now easier for lenders, with your permission, to get a more complete picture of your spending habits and your repayment history when assessing your loans.
- Lenders will be able to see your day to day living expenses, rather than relying on estimates.
- You will have the power to share your data with any other provider you want which could possibly assist in negotiating a better deal for your financial products.
How to make your comprehensive credit report shine
- Pay your debts on time, including bills for mobile phones, internet and utilities.
- Do not overdraw your credit card and be careful with services like AfterPay* and zipPay** as they may appear on your credit report.
- Be careful with discretionary spending like Uber Eats and nights out.
- Check your credit score to ensure there is no incorrect information or outstanding credit facilities like old store cards***.
Whether you are looking for your first home, next home, an investment or to refinance, contact us today to review your situation. We can, with your permission, assist you to check your credit file and provide you with guidance to help make the loan process as smooth as possible. With access to over 25 lenders, we can provide you with choice, and options to secure your finance.
Check this podcast where the author talks about the Financial situation of the Real Estate Market in Brisbane in 2019. Click here
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