Which commercial lending lenders will be affected by the new competition rules?
Commercial loans have been one of the biggest drivers of Australian economic growth since the 2008 financial crisis, with many people opting for them over traditional credit card or credit union loans.
However, with the introduction of the new Consumer Credit Rules (CCRs), many banks and lenders will now have to choose between competing on terms, and whether their customers will have access to the kind of loans they want to make.
While many of the big banks are likely to want to keep their customers on their books for the time being, others may not be so lucky.
The rules are due to come into effect on January 1st, 2018, and as the CCRs rollout goes live, some banks will face increased competition, while others will be able to access their customers’ data and applications from third-parties.
To find out whether you can access your bank’s data, you’ll need to use the following services: The Consumer Credit Bureau The Banking Actuary Banks with fewer than $1bn in assets will be exempt from the new rules, but will be forced to comply with all the new terms and conditions.
Borrowers will have to provide their full name, address, date of birth and bank account number.
They can also request that a personalised credit report (PBR) be sent to their bank, but banks are being asked to send the report directly to the CAB.
CAB will also be asked to provide a bank statement showing whether the borrower is currently in a debt recovery process.
Bank accounts with more than $10,000 in assets and deposits will not be exempt, and may be subject to the new CCR rules.
Many of these institutions already offer loans that cover some of the cost of rent, but the new rule will effectively require them to pay more for those.
All the major banks are expected to make loans to households with a mortgage, but those with lower incomes may find that they can’t access that, too.
If you are interested in getting a loan, contact your bank or contact your local branch to make sure they’re not affected by this rule change.
You can read more about the new commercial lending rules here: Commercial lending and credit union rules in Australia: who’s impacted?
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