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Google, Zillow and James Packer to sell home loans

John Kehoe
John KehoeEconomics editor
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First, Google designed a headset display worn like a pair of eyeglasses, known as Google Glass. Then it embarked on building a driverless car.

Now, the cutting edge technology giant is teaming up with the James Packer-backed American online real estate database, Zillow, to sell home loans.

The Silicon Valley trendsetter this week unveiled Google Compare for mortgages to connect lenders and borrowers online, so they can locate and compare home loans.

James Packer, the largest shareholder in Crown Resorts, took a 9.35 per cent stake in Zillow in September 2013 via Cavalane Holdings. Bloomberg

Zillow, the Nasdaq-listed real estate marketplace that Mr Packer took a $300 million stake in two years ago, is one of the founding partners of Google Compare for mortgages.

Google's online mortgage calculator will enable people searching for home loans on their smartphone or desktop to conduct a real-time, "apples to apples" comparison of interest rates from lenders.

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Borrowers can gather information such as reviews and ratings, estimate credit scores, calculate home values and click through to apply for the loan online, Google Compare's director of product management Nicolas Wk said.

Google has registered as a licensed mortgage broker, though it won't finance the loans. Instead Zillow and Lending Tree will help users find the best mortgage via their huge home databases.

The move extends Google's reach beyond car insurance comparisons and is another example of fintech "disruption", following in the footsteps of peer to peer lending and Bitcoin.

The system will begin in California and be rolled out beyond.Seattle-headquartered Zillow is a real estate and rental marketplace in the United States, advertising more than 110 million US homes.

Mr Packer, the largest shareholder in Crown Resorts, took a 9.35 per cent stake in Zillow in September 2013 via Cavalane Holdings.

In August, Mr Packer talked up his investments in Zillow and other technology ventures.

The mogul is also a financial backer of local peer to peer lender, SocietyOne.

Zillow vice president of mortgages, Erin Lantz, said Zilow and Google shared the same vision to empower consumers with comprehensive access to valuable information that helps them make confident, more informed financial decisions.

"This partnership allows us the unique opportunity to help borrowers by providing them with the industry's most accurate, real-time information about home loans and mortgage lenders," she said.

John Kehoe is Economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s election. He joined the Financial Review in 2008 from Treasury. Connect with John on Twitter. Email John at jkehoe@afr.com

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