PropertyGuru, Malaysia’s leading property marketplace, launched ‘PropertyGuru Home Loan Pre-Approval’, taking forward its commitment to address loan rejection and home ownership issues in the country under its ongoing ‘Own Your Home Programme’.
Home loan approvals remain a challenge for many home buyers, with rejection rates still high.
“Stepping in to address this gap, PropertyGuru has brought together key industry players, while drawing on its core expertise as an innovative property technology company, its proprietary data and localised property knowledge, to launch PropertyGuru Home Loan Pre-Approval,” said PropertyGuru Malaysia country manager, Sheldon Fernandez.
A powerful FinTech solution with benefits for property buyers, developers and agents alike, the Pre-Approval enables Malaysians to improve their chances of securing a home loan, in line with the national housing agenda.
It does this by delivering 99.9 per cent accuracy with a Pre-Approval of their qualified home loan amount, which then instantly offers them a suite of home loan options from our bank partnerships and this entire process takes less than five minutes, best of all, it’s free,” added Fernandez.
The step by step process for the Own Your Home with PropertyGuru Home Loan Pre-Approval starts with finding out buyers’ qualified amount by logging on its website.
It extracts the buyers’ credit score and rating from Credit Bureau Malaysia to assess credit history and financial health against benchmarks from multiple sources.
These include Bank Negara Malaysia’s eCCRIS (e-Central Credit Reference Information System) and it then calculates their accurate Debt Service Ratio (DSR) to deliver the loan amount the home buyer can be approved for by the banks which is done with 99.9 per cent accuracy and in less than five minutes.
Next buyers are matched with the desired homes that they can afford according to buyers’ qualified loan amount.
With more than 450,000 properties on PropertyGuru catering for every budget and preference, it allows home buyers to choose from a range of homes they know they can afford.
They can also see their chances of securing a home loan for properties they search for outside the recommended price range.
Finally is to apply for a home loan instantly as with the qualified loan amount for their shortlisted house, home buyers can instantly apply for a home loan with the PropertyGuru panel of bank partners which include RHB Bank, Alliance Bank and Hong Leong Bank, who will offer preferential rates and services to all those who come with PropertyGuru Home Loan Pre-Approval.
“PropertyGuru Home Loan Pre-Approval is the first of its kind.
“It gives Malaysian home buyers the power to make a financially educated and confident home-buying decision without facing loan rejection and any adverse impact on their credit score as well,” said PropertyGuru Group director, Product (Consumer) Technology, Vivek Kumar.
In effect, the Pre-Approval benefits all stakeholders of the Malaysian property industry as it enhances efficiency in the home buying-selling process, while being a solution to reduce unsold properties.
Focusing on home buyers, PropertyGuru bank partners will fine-tune their service and it will also enable real estate agents and developers to better support prospective buyers.
“Alliance Bank is proud to partner with PropertyGuru on the launch of its Home Loan Pre-Approval platform.
“This fast, simple, and innovative platform helps Malaysians fulfil their aspirations of owning a home as it provides a realistic assessment of the intended home loan eligibility,” said Alliance Bank head of Consumer Asset, Edwin Lee Wee Gee.
The Pre-Approval also strongly resonates with the National Housing Policy 2018–2025, which seeks to address current market issues, including the demand/supply mismatch.
It also follows in the footsteps of ‘PropertyGuru Mortgage Pre-Qualifier’, launched in August last year as a tool to estimate mortgage amounts ahead of time for home buyers.
The Pre-Approval improves on this with an end-to-end ecosystem of complementary features that support home buyers throughout their home buying process.
“There’s actually quite some powerful technology under the hood of PropertyGuru Home Loan Pre-Approval.
“But it’s not the Fintech alone that does the trick. For the first time, key real estate industry players have come together to rethink the mortgage process across party lines.
“I firmly believe that such partnerships infused with innovation are the right path forward to truly solve one of the biggest roadblocks Malaysians face during their home-buying journey,” said PropertyGuru Group chief marketing officer and head of FinTech, Bjorn Sprengers.
The ‘Own Your Home Programme’ is the PropertyGuru long-term commitment to help Malaysians better understand their unique home affordability challenges, and to provide innovative solutions that empower Malaysians to #BeatTheOdds and own a home.
It does this by guiding Malaysians through the entire home-buying process, showing them what to expect stage-by-stage to better prepare themselves for property purchases.
The launch of PropertyGuru Home Loan Pre-Approval was held in conjunction with the PropertyGuru ‘Own Your Home Weekend Fiesta’.