New mortgage broker commercial warns of “less competition” and “higher interest rates”

The Mortgage and Finance Association of Australia has released a new commercial campaign.

In a “grim-reaper” style, it says new laws in the wake of the royal commission could lead to higher interest rates.

Click PLAY below to watch the commercial

“It’s reminiscent of what the mining industry did when it encountered Wayne Swann’s resources super profits tax almost a decade ago,” Tom Elliott said.

“And the mining industry was very successful in watering down that tax and it really no longer exists.”

Mike Felton, chief executive of the Mortgage & Finance Association of Australia, told Tom Elliott they released the ad as a warning for customers.

“To warn consumers of the impact of these possible changes, which would severely challenge the viability of mortgage broking, reducing customer access to a lot of smaller lenders and damage competition,” Mike said.

“Which can’t be good for consumers.

“I think it’s a compelling message.”

Click PLAY below to hear more

“This is going to make life worse for people trying to get a mortgage and I just cannot see how that’s a good thing,” Tom said.