KUALA LUMPUR: PropertyGuru’s Home Affordability Tool (HAT) has received over 16,000 Malaysians to check their credit worthy, since its launch more than a month ago.
The property portal said the free-of-charge loan assessment calculator allow consumers to find out their debt servicing ratio (DSR), maximum home loan eligibility and range of home prices they could realistically afford.
PropertyGuru’s noted that consumers are eager to discover if they are credit worthy enough to secure a bank loan and purchase a home.
PropertyGuru Malaysia country manager Sheldon Fernandez said those who used HAT, their loan eligibility matches PropertyGuru’s Consumer Sentiment Survey findings show Malaysians are typically looking at home loan principal sums of between RM300,000-RM500,000.
“The median point is about RM400,000 to RM450,000 for maximum loan amount. Most who checked their credit score have a healthy DSR of below 50 per cent,” he said in a statement today.
He added HAT re-orientates people’s mindsets so they view their credit worthiness from the perspective of banks rather than relying on their personal assumptions.
“Most people have a vague idea of what they can afford and proceed to buy a property only to be disappointed when they can’t secure financing.
“PropertyGuru’s HAT helps people set more realistic targets of what they can afford. With this, we hope more Malaysians can be better equipped to buy their dream homes,” said Fernandez.
Linked to the Credit Tip Off Service (CTOS) system, HAT requires prospective buyers to key in their personal details to retrieve their DSR.
According to statistics released by PropertyGuru, the majority of consumers are in the dark about their loan eligibility ratio.
“Most have a rough idea while others just apply and hope for the best. The end result is high loan rejection rates and plenty of frustration and disappointment among buyers (and sellers too), which has become endemic of the local property market.”
The statistics revealed that some consumer may even obtain loans which they may have difficulty servicing which could lead to financial issues and property foreclosure.
PropertyGuru said currently loan rejection rates vary with the real estate housing developers association (REHDA) putting the number as high as 60 per cent, while Bank Negara Malaysia noted that the situation was progressively improving with rejection rates for 2017 reported at 23.1 per cent.
Available on a complimentary basis for all who visit propertyguru.com.my, HAT is the first-ever online loan eligibility solution in Malaysia, developed in collaboration with MHub – a real estate financial technology platform that helps qualified buyers to get their homes and powered by CTOS – Malaysia’s leading credit reporting agency.