Keep Competition Alive

AFG has launched a campaign designed to highlight to Australians and our key policy makers the important role mortgage brokers play in providing competition to the big four lenders. This campaign focuses on the many benefits competition brings in providing choice to borrowers and keeping downward pressure on interest rates.? The competitive tension delivered by a viable mortgage broking channel is vital to help limit oligopoly behaviour in an industry that is dominated by the four major banks.

This campaign reinforces that important message and communicates the potential threat posed by the introduction of any new regulations that result in an uneven playing field being further skewed towards the major banks and away from efficiency and competition.

30 second TV commercial

The campaign begins with an intense run of television commercials appearing on Sky News. These will initially run over a two-week period, starting in late November and running into the first week of December.

A home for the campaign

As a part of the campaign we have launched a microsite that will act as a hub for customers, supporters and brokers. This has been developed to provide easy access to the key information relating to the value that mortgage brokers deliver to Australians looking to secure a home loan. The website can be found at keepcompetitionalive.com.au.

It’s time to contact your local MP

We’re calling on AFG Brokers, their customers and industry supporters to lend their voice to our cause by heading to keepcompetitionalive.com.au. On the site utilise our website tool to locate Senators and Members of Parliament to either send a message of support for the the mortgage broking industry or request a meeting to sit down and inform them of the value mortgage brokers bring to the table, the competition they drive and the great customer outcomes that mortgage brokers deliver.

If you have any questions around the campaign or would like more information please get in touch.

General enquiries
keepcompetitionalive@afgonline.com.au
1300 130 987

Media enquiries
mdmedia@afgonline.com.au

Deflection reeks of self-interest

AFG has today called for the customer to be first and foremost in the debate on mortgage brokers and the big banks.

AFG Chief Executive Officer David Bailey has urged a careful and considered approach to policy settings preserving the best possible competitive arrangements as big banks seek to consolidate lending back to their branches.

“We have seen testimony which has deliberately denigrated the mortgage broking sector and it is nakedly self serving,” he said. “Thousands of small business operators around the country are being bullied by the big end of town.

“The suggestion of a fee for service would have the effect of lessening competition, consolidating lending back to the major banks, driving up prices, and making it harder for first home buyers and other sectors of the market.

The only winners out of such a change will be the major banks with their extensive branch networks. “Despite consumers voting with their feet, recent public statements suggest some have seen an opportunity to take back that market share by demonising their biggest competitors who have driven a fairer go into the market.

“The white noise about mortgage brokers is a distraction from the fact that Australian consumers are choosing to have a relationship with a mortgage broker who knows their individual circumstances and understands the lenders, many of whom do not have a branch presence, that may be able to help them.

“AFG data shows our brokers are delivering 40% of business to the the non-major lenders. If mortgage brokers are taken out of the equation, the non-majors and any semblance or competition will be decimated.

“Moves to marginalize the broker channel would mean the loss of tens of thousands of jobs in small business across the country won’t be the only price paid,” he said. “Make no mistake, the losers will be every single mortgage holder in this country as the big banks once again have free rein to take back control.

Reserve Bank of Australia has decided to leave official cash rate unchanged at 1.5%

As the nation stops to enjoy today’s Melbourne Cup, the only sure bet of the day was that the Reserve Bank of Australia would leave the official cash rate unchanged at 1.5% for the 27th consecutive time.

Rates remain on hold while the RBA assesses domestic factors including slow economic growth, falling house prices and low wages growth in parallel with global stock market falls resulting from concerns about a possible trade war between the USA & China.

With lenders continuing to review rates independently of the RBA, it is important to review your lending options regularly to ensure they remain the most suitable for your situation. There may be different rates available from our wide panel of lenders and an AFG broker is? always available to ensure you have the right financial solution for your current and future circumstances.

If you’d like to have a chat about what today’s news means for you and your finances, please don’t hesitate to?get in touch with an AFG broker.