the adviser logo

New credit rules make diversification ‘critical’

by Ezekiel MacNevin10 minute read
New credit rules make diversification ‘critical’

RateSetter has called for brokers to diversify into personal lending as ASIC’s new credit card rules could negatively impact consumers.  

Peer-to-peer lender RateSetter has claimed that the new credit assessment criteria from the Australian Securities and Investments Commission (ASIC) could expose consumers to a “harsh downside” of credit card debt. 

Under the new rules, consumers with significant credit debts are required to demonstrate their ability to repay their debt over a three-year principal and interest term. 

RateSetter has urged brokers to get in touch with their clients to ensure they are aware of the effects of ASIC’s regulations on their personal finances.


“Brokers know their clients best. These credit card new rules could impact a client’s future prosperity and brokers should be connecting with their most valuable asset to educate them about these changes,” Mark Woolnough, RateSetter’s head of third party distribution, said. 

According to RateSetter, the best option for customers to avert the impacts of ASIC’s new rules, when it comes to demonstrating loan serviceability in the future, could be to set an amortising loan over five years or less. 

It noted that incorporating credit card debts into longer-term home loans is not always suitable for consumers. 

As such, RateSetter believes the case for brokers to diversify into personal loans is intensifying.

“It simply makes good business sense to turn up to client conversations equipped with options like personal loans so that clients have a readily accessible solution,” Mr Woolnough said. 

“Brokers shouldn’t fail to consider the potential diversification offers. Brokers only stand to act in their clients’ best interests. Diversification into personal loans is a logical gateway to business growth and increased revenue.”

[Related: RC offers ‘opportunity’ for brokers to diversify]

credit card stack   ta

Ezekiel MacNevin


Ezekiel is a journalist on the mortgages, property investment and wellness titles at Momentum Media. 

Before joining the team in 2019, he was a freelance journalist for Vice Australia, Pulse Radio and the Sydney-based travel publication Global Hobo, among others. 

Ezekiel studies a double Bachelor of Communications and International Studies at the University of Technology, Sydney.

You can email Ezekiel on: [email protected]


Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more