The Australian Bureau of Statistics released its Lending Finance figures for August today, pinpointing a continued slow rise in number of committments from July.

It reports total housing committments for owner occupation rose 1.3% in August.

AUGUST 2011 COMPARED WITH JULY 2011:

HOUSING FINANCE FOR OWNER OCCUPATION

  • The total value of owner occupied housing commitments excluding alterations and additions rose 1.3% in trend terms and the seasonally adjusted series rose 0.6%.

PERSONAL FINANCE

  • The trend series for the value of total personal finance commitments rose 0.9%. Fixed lending commitments rose 0.9% and revolving credit commitments rose 0.9%.
  • The seasonally adjusted series for the value of total personal finance commitments rose 2.2%. Fixed lending commitments rose 2.9% and revolving credit commitments rose 1.5%.

COMMERCIAL FINANCE

  • The trend series for the value of total commercial finance commitments rose 2.0%. Revolving credit commitments rose 2.9% and fixed lending commitments rose 1.6%.
  • The seasonally adjusted series for the value of total commercial finance commitments rose 7.9% in August 2011, following a 5.0% rise in July 2011. Fixed lending commitments rose 8.6%, following a 1.5% rise in the previous month. Revolving credit commitments rose 6.4%.

LEASE FINANCE

  • The trend series for the value of total lease finance commitments rose 0.3% and the seasonally adjusted series rose 6.6%

With lenders still fairly cautious, there still appears to be a great need for a clear credit rating in the current market.

Prospective home owners should ensure their credit file puts them in the best position for obtaining a mortgage.

It is advisable for people to apply to one or more of the credit reporting agencies for a copy of their credit report, prior to making a loan application. This can also save creating excess credit enquiries on their credit file.

If people do find their credit report reveals some black marks, they should consider whether they are candidates for credit repair.

People should be aware that creditors make mistakes when putting listings on credit files all the time. Sometimes it can be a case of mistaken identity, the wrong person ends up with the bad credit rating, sometimes it can be a change in address which causes the adverse listing, or simple computer error.

So it is worth doing a free check every 12 months, even if people think they should have no adverse listings on their credit file.

It is the credit file holder’s responsibility to obtain a credit report from the credit reporting agencies and ensure their credit file is as it should be.

Contrary to popular belief, if the credit report shows inconsistencies, people do have the right to have them removed. If a listing has been put there in error, it is possible to have it removed – NOT JUST MARKED AS PAID.

For those people who were previously unable to obtain a mortgage due to credit file defaults this may open a door they thought was closed for 5 year (the term of a default).

For more information on how to check credit files, and for help with credit rating repair, visit MyCRA Credit Repairs website.

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