PHOTO: All four of the major banks are now involved in the Comprehensive Credit Reporting regime. Picture: AAP Source:AAP

Millions of Aussie homeowners will be able to save thousands of dollars through sweeping changes to the credit reporting system and mortgage holders are being advised to take swift action.

Aussie homeowners stand to save an average $40,000 over the life of their mortgages under new credit reporting laws introduced by federal government.

The savings will work out to about $112 per month for the average mortgage holder with a 25-year loan, according to consumer advocate group

The group’s CEO David Scognamiglio said the introduction of Comprehensive Credit Reporting will be a game changer for mortgagees because banks will see the positive records of millions of homeowners for the first time.

Banks could previously only judge how much they could lend property buyers based on their negative credit score, he said.

“Good qualities like paying their credit card or car loan on time were never included,” Mr Scognamiglio said. “This gave an unclear picture on what they could actually afford to borrow.”