Powered by MOMENTUM MEDIA
realestatebusiness logo

Breaking news and updates daily. Subscribe to our Newsletter!

Home of the REB Top 100 Agents
Breaking news and updates daily. Subscribe to our newsletter

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

New CDR expansion to make mortgages easier

By Annie Kane
24 December 2021 | 1 minute read
New CDR expansion to make mortgages easier

The government has confirmed it will expand the Consumer Data Right, which could make it easier for consumers and small businesses to apply for a home loan.

Since the Consumer Data Right (CDR) has been in operation in banking (starting with the major banks in July 2020 and extending to non-majors in July of this year), consumers and small businesses have only been able to use the CDR to instruct businesses, such as their bank, to share their data with an accredited third party in order to help them make better decisions regarding the products and services they purchase or to switch between providers more easily.

After releasing its official response to the Inquiry into Future Directions for the Consumer Data Right earlier this month, the federal government has now agreed to enable consumers and businesses to instruct third parties to initiate actions on their behalf (once consent is given).

Advertisement
Advertisement

In relation to mortgages, the future directions inquiry suggested: “Switching may be greatly streamlined by enabling electronic lodgement of applications in standardised forms by accredited persons on behalf of consumers and could be enabled by action initiation.”

If such a change were implemented, accredited persons might also be able to design services that offer to undertake these actions independently, or in combination with, data-sharing services, it added.

Under the new move by the government – the latest tweak to the CDR (which now also gives brokers access) – consumers and small businesses will have more power over their own data to compare and switch banking products and, in the future, telecommunications and energy providers.

For example, a consumer may consent for their financial management app to make payments across all of their bank accounts.

The government said it would continue to work with stakeholders to develop an “integrated roadmap for the implementation of these CDR reforms”.

Treasurer Josh Frydenberg commented: “The Morrison government is expanding the Consumer Data Right to make it easier for consumers and small businesses to undertake everyday tasks such as making payments, opening and closing accounts and applying for a home loan.”

A ‘game changer’ for home lending: Westpac mortgages MD

Speaking of the change, Anthony Hughes, Westpac’s mortgages managing director, said he believed that this could be a game changer when it comes to home lending due to the role it can play in “stripping away all the paper artefacts” of the past.

“Once we have a majority of the data available, it’ll make a really big difference to how quickly and easily we can help a customer with their mortgage and other needs,” Mr Hughes told Westpac’s in-house publication, Westpac Wire.

“The first wave of digitisation was really about turning physical paper into digitised paper, but frankly it was still paper.

“But the true world of digital is when the paper goes away altogether and you’re automatically pulling verified data, obviously with the customer’s consent, from other sources.

“It might be data from the Australian [Taxation] Office, or a credit bureau, or a customer’s banking transaction accounts – and, given that data’s verified, you don’t need to ask for any of those old school documents that we were required to ask for in the past.”

He continued: “Weve got to continue to digitise the process, end to end, in the eyes of the customers. That means getting faster, more reliable and taking the effort out for them, and then guiding them in those key moments of truth and doing that incredibly consistently.

“If we can achieve what we’ve been able to in the last 12 months in the next two years, I think we’re well on our way.” 

New CDR expansion to make mortgages easier
Parliament house new reb
lawyersweekly logo

ABOUT THE AUTHOR


Rankings
rankings
JUST RELEASED
May 09, 2022

REB Top 50 Women in Real Estate 2022

REB is thrilled to present the Top 50 Women in Real Estate 2022 ranking, which sets t ... LEARN MORE

rankings
JUST RELEASED
May 04, 2022

REB Top 100 Agents 2022

Now in its second decade, the REB Top 100 Agents 2022 rankings are the most revered s ... LEARN MORE

rankings
JUST RELEASED
May 02, 2022

REB Top 50 Agents NSW 2022

Even a pandemic has not put the brakes on the unstoppable property market in NSW, whi ... LEARN MORE

rankings
JUST RELEASED
April 27, 2022

REB Top 50 Agents VIC 2022

The COVID-19 crisis has not deterred the property market in Victoria, which has been ... LEARN MORE

rankings
JUST RELEASED
April 25, 2022

REB Top 50 Agents QLD 2022

As the property market continues to roar in Brisbane and Queensland, the REB Top 50 A ... LEARN MORE

Coming up

rankings rankings
Do you have an industry update?

top suburbs

12 month growth
Mirador
103.33%
Bawley Point
98.13%
Walla Walla
90.7%
Byron Bay
86.67%
Kiama Heights
85.93%
Greta
84.14%
Nulkaba
81%
South Hobart
78.78%
Diddillibah
76.25%
Lennox Head
73.98%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
Subscribe to Newsletter

Ensure you never miss an issue of the Real Estate Business Bulletin.
Enter your email to receive the latest real estate advice and tools to help you sell.