Life & Loan
Banks tell buyers how much they can borrow, but not how much they should – which can lead to massive, underwater mortgages. So ME Bank and CHE Proximity created Life&Loan, a mortgage calculator driven by the buyer’s lifestyle, not the bank’s.
Since the 1970s, the housing-debt-to-income ratio in Australia has skyrocketed more than 400% – resulting in many economists worrying about an American-style housing crisis. Google trends data showed that this rise was, in part, due to online mortgage calculators that failed to include all the necessary variables.
With data at its core, ME Bank and CHE Proximity dramatically expanded the idea of what a mortgage calculator should offer. Typical mortgage calculators are based on two over-simplified data points: income and expenses. Life&Loan uses more than 50,000 data points – making it intricate decision making engine that considers lifestyle and interests.
Users select a preferred suburb and four things they’d like in it. Then with the Australian Bureau of Statistics’ backend data, income and expenses are matched with thousands of data points to estimate both lifestyle and household expenses. The Google Places and Domain Real Estate’s API then curate real-time, personalized recommendations – all within budget.
Consideration of a ME Bank home loan increased by 34%, with a 10% increase in the likelihood of using ME Bank as lender. Consideration of a loan with the big 4 dropped by 8% after using the app, and the perception of a home loan with ME Bank as “simple and easy” increased by 11%.