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As of 1 July 2018, Westpac will be required to provide more holistic credit records, both positive and negative.
It is hoped that the information will provide a more complete picture of consumer credit behaviour to better assess portfolio risk and assist with more responsible lending and borrowing practices.
As such, the bank has said that from April 2018, it will begin collecting more customer repayment history for its three Credit Reporting Bodies (CRBs): Equifax, Experian and illion.
The new credit information will include account open dates, credit limits and up to 24 months of repayment history.
Westpac has said that all consumer credit customers, where possible, will be contacted by SMS or email in the first two weeks of April 2018 about the new changes, with additional statement messaging throughout the year.
Consumer credit policy
The bank is also making several changes to its consumer credit policy.
Effective as of 24 March 2018, the major bank will make the following format changes to its Security Development Register (SDR):
- For non-mortgage-insured applications, the total maximum allowable exposure within a development will increase from 20 per cent to 30 per cent.
- For mortgage-insured loan applications, the total maximum allowable exposure within a development will remain unchanged at 20 per cent. To cater for this change, the Security Development Register (SDR) may now list a development with the status of “Mortgage Insured Loans No Further Exposure”.
Westpac has also announced that, following the introduction of the new Temporary Skills Shortage (TSS) Visa, which replaces the previous Temporary Work (skilled) Visa (457), it will now only accept the four-year visa (medium-term TSS).
Finally, the bank has adjusted its owner-builder fees, representing the lowest “To Be Erected” (TBE) and Progress Inspection (PI) cost per state charged for owner-builders.
- TBE fee has been reduced from $197.55 to $184.50
- PI fee will remain at $112.75
[Related: Major bank rolls out CCR for customers]