PropertyGuru, a real estate marketplace giant in Malaysia, has officially launched PropertyGuru Home Loan Pre-Approval, a new approval feature to the company's Own Your Home Program that will aid in helping buyers get approvals for home loans in an effort to address the loan rejection and home ownership issues the country has been facing.
Home loan approvals remain a challenge for many home buyers, with rejection rates still high at nearly 60% by value last year, according to Bank Negara Malaysia. This comes despite 92% of Malaysians expressing their interest in purchasing properties, according to research by PropertyGuru.
It also impacts developers and real estate agents across the board, with an estimated 43,219 residential units worth RM29 billion (about US$7 million) unsold nationwide as of Q3 2018. In the same quarter, four out of five of the country’s top developers (by capitalization) posted lower year-on-year earnings. These ranged from marginal decreases to 93.17% declines.
Lack of knowledge about loan eligibility among home buyers is often cited as a primary concern among banks and financial institutions when asked for prime reasons behind home loan rejections.
“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 localized property knowledge, to launch PropertyGuru Home Loan Pre-Approval.
“A powerful FinTech solution with benefits for property buyers, developers and agents alike, PropertyGuru Home Loan 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% accuracy with a Pre-Approval of their qualified home loan amount. It then instantly offers them a suite of home loan options from our bank partnerships. This entire process takes less than five minutes – and best of all, it’s free,” said Sheldon Fernandez, Country Manager, PropertyGuru Malaysia.
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