Australian Banks to Offer Low-Cost Loans and Mortgage Deals

Australian FlagRecently, the Government of Australia submitted its report of the independent review of Small Amount Credit Contracts or SACCS. In this report, the treasury department has passed a new regulation in which banks are pressurised to offer better deals on loans and mortgage to the people who are having a good credit history.

It is welcome news for all the Australian citizens as banks were always focused on penalising the people with bad credit history instead of rewarding people who pay their credit card bills on time. People with good credit card score would now have access to better deals for their mortgage as well as business or personal loans.

The treasurer Scott Morrison would be announcing the new credit regulations which would apply to four biggest banks of Australia namely Commonwealth Bank of Australia, Australia and New Zealand Banking Group (ANZ), National Australia Bank (NAB) and Westpac.

Good to Go Loans

Morrison made the following statement during the press conference:

If you have an excellent credit history—you’re paying down your mortgage, you haven’t missed a payment on your car loan, and your credit cards are under control—you will be able to demand a better deal on your interest rates, or shop around, armed with your data.

The treasurer is of the opinion that new set of rules would help the Australian economy as it would lead to healthy competition regarding loan lending and minimising the costs of the loan. People would have access to better loan facilities for their household as well as business needs.

Also, the new comprehensive credit reporting routine would compel the lenders to report the credit history of the customer; whether good or bad. Morrison believes that the new standards would keep the adverse credit history people at bay and banks could now focus giving loans to people with good credit history.

More significant data means there would be small lenders who could make better risk management and offer the best deals to the needy and appropriate customers. This reform has been in existence for quite some time, and small lenders are finding the new rule standards better for their business.

The founder and Chief Executive Officer of Melbourne-marketplace lender MoneyPlace, Stuart Stoyan, believes the new rules would open doors for lower interest rates and consumers would have better access to loans especially when they have a right credit history. Under this new state of standards, the four most prominent banks of Australia would have to turn over a minimum 50% credit data latest by July 2018 by which the initiative would be launched. The complete data must be made available to the government by the end of July 2019.

The Turnbull Government is looking forward to expanding the comprehensive credit reporting system to different industries. All the residents of Australia can now expect better deals and savings from electric and gas companies as well as telephone providers shortly.

Rich Archer

Rich Archer

Hi, my name is Rich Archer. I am living in London. Welcome to Binary Manual. Reach to Binary Options broker reviews and market news here.

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