MFA fights against mortgage exit fee ban
The Mortgage and Finance Association (MFA) of Australia is to launch an advertising campaign against a proposed ban on home loan exit fees.
According to the West Australian, the group believes that the policy, if it goes ahead, would be bad news for non-banks hoping to offer competitive home loan rates to property owners in the country.
Phil Naylor, chief executive of the MFA, said that the move could force smaller lenders to charge fees up front, reducing their capacity to compete with banks, and has launched a $200,000 campaign to convince the federal government to rethink its plans.
The ban "would probably make quite a few of [the non-banks] marginal operations. The key message the group is trying to get across is that an imposition of the ban will cost consumers", Mr Naylor said.
The Australian Bureau of Statistics recently published a report which indicated that there was an increase in the number of mortgage approvals in April, the first time in three consecutive months.