
Mike Nicholls, the former Enikos CEO, and Dale Hurley have been working on a bunch of start-ups together, including Jobfeedr, which we covered late last year.
Well the team has come together again and is working on a new startup, Mortgagecorp, which it hopes will change the Australian mortgage market.
As Nicholls explains
Competition is dead. Everyone knows it, no one knows what to do to solve it. Big banks and their subbrands are writing more than 80% of the Mortgage business in Australia.
Over the last two years Bankwest, St George, Wizard, RAMs and Aussie are now either fully owned or have significant big bank ownership. Combine this with the disappearance of other lenders such as Macquarie and GE and smaller non bank lenders due to difficulty of raising funds in the market.
As a result there is very little effective competition in the Australian Mortgage market.
MortgageCorp aims to overcome this by making it easier than ever for people to review more than 600 products from over 25 lenders. In contrast to most sites out there, MortgageCorp doesn’t hide the lender details either. They’re even trying to remove the need to speak with a representative by automating the whole loan process – something no other site currently offers
I had a quick chat with Nicholls about the site and this is what he had to say:
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How’s traffic?
Traffic is still small, 1000+ per month but growing at +40% per month. To be honest we have had limited budget to advertise and have been taking time to fine tune the ad campaigns on Google, Facebook, LinkedIn Yahoo/Microsoft before we turn up the ad spend.
Tell us about the tech you’re using to run the site
Tech behind it, basically running on a lagre VPS, MYSQL backend, XML updates to the data, using a combination of JS and PHP to run. We get a direct feed from the our Mortgage Aggregator who combines all the bank loans etc which we then feed into mySQL backend.
What’s the plan?
Long term we have built the application to be interfaced with a local Standard called LIXI http://www.lixi.org.au/ which is Lenders XML initiative. This is designed to be able to do a completely electronic loan application from broker to lender including applications, valuations and settlements.
We have a backend capable of accepting all data required to conduct an LIXI transaction but there is still missing links in the chain above our company, the gateway provider is not ready for us to do this yet and only about 14 lenders have signed onto the concept, but we will be ready to do it in the future.
So at the moment the application simply takes an enquiry but later it will take a loan application and provide a complete electronic application.
Tell us something sweet about the site that will make people want to use it even before the process becomes fully automated
We have just released a mortgage calculator app that takes your variables and calculates all the stamp duties, estimates the lenders mortgage insurance (which is very difficult to do as you don’t know how much you need to borrow initially), works out the loan amount you need based on the deposit, property price and then the aforementioned costs and then based on your conditions including Loan to Valuation Ration calculates in real time the top 20 loans with each of their payments per month for the amount to be borrowed. It also shows all the loan fees and any other loan details.
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There’s still some work to do on the user interface, but for now the functionality is good enough to make this a site that you should definitely check out if you’re in the market for a mortgage