The leading challenger bank has developed a new loan calculator intended to “shock borrowers out of apathy into action” as it seeks to exploit the growing refinance market.
The new tool called ‘Scroogify’ quantifies how much a borrower would save over the life of their loan if they were to refinance their existing home loan to ME.
Head of home loans Patrick Nolan explained that industry refinance levels have been steadily increasing as competition between lenders intensifies, which has meant that borrowers are becoming more aware of new deals on offer.
“However, a large group of borrowers are still disinclined to refinance due to the perceived difficulties in comparing and because they underestimate the amount they can save, despite the fact the majority are with a major bank and are probably paying too much,” Mr Nolan said.
“We built Scroogify to be a new type of calculator that, in a few seconds, quantifies just how much a borrower would save over the life of their loan, in both time and money, if they switched their existing home loan to ME.
“We think Scroogify will shock borrowers out of apathy into action.”
The bank added that the tool will help to maintain its home loan growth after its home loan settlements reached $3.2 billion for the six months to 31 December, which was up 54 per cent compared to the previous corresponding period.
[Related: ME launches new internet banking platform]