New credit history legislation will let insurers in the lenders’ mortgage insurance market make better risk assessments, according to the Insurance Council of Australia (ICA).

The Privacy Amendment (Enhancing Privacy Protection) Bill 2012 – which passed through Parliament last week – allows repayment history to be included in an individual’s credit information file.

“Mortgage insurers provide greater access to home ownership, particularly for low-income, low-equity and higher-risk borrowers who have the capacity to repay a loan but do not have a significant deposit,” ICA CEO Rob Whelan said.

“The industry welcomes the recognition that direct access to the complete credit report, including repayment history information, is necessary to enable mortgage insurers to accurately assess risk.”