Property developers are taking new measures to ensure sales this year. The challenge they often face is that home buyers are unable to secure a loan to buy the property. To smooth iron this gap between securing a loan and buying real estate, banks and developers have come up with some digital home loan solutions.

Here are 3 such digital solutions that might help homebuyers in 2022 to secure loans faster and more efficiently

1. Paramount Corp’s same-day disbursement for home loan applicants

   Last year, on 30 June 2021, Property developer Paramount Corp Bhd announced they were one of the five lead applicants who applied for a digital banking licence to Bank Negara Malaysia (BNM) along with their consortium partners comprising:

   • Paramount
   • Star Media Group Bhd
   • Prosper Palm Oil Mill Sdn Bhd
   • RCE Capital Bhd
   • A technology partner

   Sometime in March 2022, BNM will announce the successful applicants whose licence has been approved. With the date approaching quickly, Paramount’s chief executive officer (CEO), Jeffrey Chew Sun Teong is 50% confident that the group will secure the licence with the help of their consortium partners. So, they decided to share their digital banking plans with the public.

   Chew says, “The key objective of the application is to leverage on the vision, strength and experience of the consortium partners to build a digital bank that promotes financial inclusivity and empowerment to uplift Malaysians for a better future, particularly the underserved and unserved communities that are facing financial hardships.”

   Expecting a positive response from BNM, Paramount has set aside RM 100 million, spread across the next three to five years, to finance their digital banking venture. In a press conference on 4 March 2022, Chew said that on becoming a digital bank,

   • Their customers will not have to do any paperwork on physical paper.
   • Everything from the bank’s back office to the front office will be fully digitalised.
   • Prospective borrowers will not be needed to visit the bank physically.
   • Loans will be pre-approved since the bank will have all the data and credit scores of the customers.
   • So, when the customers apply for a loan, the money will be disbursed on the same day.
   • They are also considering embedding banking products into their property transactions.

2. Maybank Home2u digital solution approving loans in 10 seconds

   Maybank has launched a digital home financing solution, Maybank Home2u, that can approve a loan application in just 10 seconds depending on the home customers choose. Homebuyers can apply for a home loan straight from the MAE application without having to visit the bank physically. Right from application to approval to signing the Letter of Offer (LO), all things can be done digitally.

   Datuk John Chong, group chief executive officer (CEO) of Maybank’s Community Financial Services says that Maybank Home2u helps customers to find out their eligibility for a home loan instantly, which has been a common problem among their customers. And in case they cannot confirm their eligibility, this digital platform offers alternative recommendations on home units based on their affordability.

   With this solution, customers can select their home financing insurance package without submitting their income documents. Once the loan is approved, the mortgage advisor will get in touch with the applicant to review the LO as well as perform a Know Your Customer (KYC) verification.

   Maybank sees this as a timely move to boost potential buyers as the economy is towards recovery. An uncomplicated loan solution can encourage a homebuyer’s decision to own a home. As such, Maybank is also allowing a 105% financing margin for first time home buyers so that they do not have to pay a steep deposit to buy a house.

3. Tropicana collaborates with Maybank Islamic’s HouzKEY to offer 100% financing to homebuyers

   Property developer Tropicana Corporation Berhad collaborates with Maybank Islamics HouzKEY programme to offer 100% financing to property buyers. This solution is to provide easy homeownership solutions to first and second-time homebuyers.

   Most attractive to the younger market segment, the programme offers easy entry and minimal capital outlay. Customers can apply for the loan for both high rise and landed properties as well as ongoing and move-in ready houses.

   They will have to pay a three-month refundable deposit to apply but Tropicana believes it will give an edge to homebuyers as they will not have to pay anything during construction and can achieve the lowest monthly payments with the best rates under this programme.

   The latest version of HouzKEY allows government incentives:

   • Stamp duty exemptions under Home Ownership Campaign (HOC)
   • Memorandum of transfer (MOT) waivers
   • 10% discount on the purchase of residential properties.
   • Bumi discount for eligible Bumiputras.
   • Employment Provident Fund (EPF) withdrawal for monthly loan instalments or direct deduction of the principal loan.

   The participating properties in this collaboration include:

   • Paisley Serviced Residences
   • Residences (South) within Tropicana Metropark
   • Edelweiss Serviced Residences at Tropicana Gardens
   • Aman 1 at Tropicana Aman
   • Lakefield Residences at Tropicana Heights
   • Ayera Residences nestled within Tropicana Danga Cove

   Aside from that, Tropicana is currently running the ‘Tropicana 100’ campaign. It offers a 100% deal to homebuyers. Maybank Islamic is also running ‘HouzKEY 2021 Ox-picious New Year Campaign’ in celebration of this year’s Chinese New Year. It offers an additional RM 800 voucher to HouzKEY applicants until 8 April 2022.

To know about more such digital solutions for property buyers and the latest updates on the Malaysian property industry, stay tuned to the Guyub news portal.