PropertyGuru’s Fintech tool helps home buyers to attain loan

Property marketplace PropertyGuru launched its ‘PropertyGuru Home Loan Pre-Approval’ tool, to help Malaysians avoid home loan rejection by matching buyers’ qualified loan amount to a range of homes that are affordable for them.

It is a lifelong goal to be able to purchase property for most Malaysians. However, with loan rejection rates remaining high, it is a difficult goal to accomplish.

Home loan rejection rates stood at nearly 60% by value last year according to Bank Negara Malaysia. That is the equivalent to every 1 in 2 home loan applications getting rejected.

This situation also impacts developers and real estate agents across the board, with an estimated 43,219 residential units totaling RM29 billion unsold nationwide as of 3Q18.

In addition, transaction volumes were reported at 311,824 in 2017 according to the Malaysian Institute of Estate Agents, down from 430,400 in 2011.

PropertyGuru Malaysia country manager Sheldon Fernandez during the launch said, “It does this by delivering 99.9 per cent accuracy with a pre-approval of their qualified loan amount. It then instantly offers them a suite of home loan options from our bank partners. This entire process takes less than five minutes and it’s free.”

To get started on the pre-approval process, you are required to register your name, provide your identification card (IC) number and a photograph of your IC back and front on the PropertyGuru Malaysia website. Then, you have to key in your income while your credit score and rating is being extracted from Credit Bureau Malaysia.

Users’ credit history and financial health is benchmarked against Bank Negara Malaysia’s eCentral Credit Reference Information System (eCCRIS). The debt service ratio (DSR) is then calculated within a few minutes at 99.9% accuracy.

Subsequently, the platform matches buyers’ qualified loan amount to more than 450,000 properties on PropertyGuru that is suitable to every buyers’ budget and preference.

Buyers can then instantly apply for a loan with the PropertyGuru panel of bank partners which includes RHB Bank, Alliance Bank and Hong Leong Bank and enjoy preferential rates and services.

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