4 Wrong Beliefs About Home Loan Rejections

November 26, 2019

Wanting to own your dream home, and actually doing the buying, are two VERY different things when it comes time to act! Ask anyone who’s ever been through the process of purchasing a property, and they’ll be able to tell you of the difficulties and roadblocks they usually face.

One example of a common issue that many Malaysians face on the road to home ownership, would be getting their loan application approved. According to Bank Negara Malaysia (BNM), the rejection rates of home loans stood at nearly 60% by value last year!

In addition, results from the PropertyGuru Consumer Sentiment Survey H1 2019 indicated that half of the respondents have expressed their interest in purchasing a property. With that in mind, we’re about to go busting some popular myths surrounding loans, so that your chances of an approval will be increased!


Myth #1: If you’re debt-free with no credit card, you’re more likely to be approved for a home loan.

This couldn’t be further from the truth! You see, not having a track record will actually REDUCE your chances of getting a loan. If you’re a blank piece of paper, banks wouldn’t know how financially disciplined you are, and how likely you will keep to your monthly repayments.

So, if you’re already thinking about buying a property, make sure to sign up for a credit card at least 6 months before you submit a loan application. Just make sure not to spend more than your allocated credit limit. And if you don’t feel comfortable, you don’t actually have to use the card – just having it for record purposes is good enough.

PropertyGuru Loan Pre-Approval


Myth #2: If you get rejected, you just have to keep trying to get a home loan.

Please, don’t do this! Every time you get rejected, your chances of getting approved will drop. For example, if Bank A rejects your first loan application, it automatically becomes less likely for Bank B and Bank C to approve you for a loan.

This is because every loan rejection leaves a ‘black mark’ in your credit profile, and the subsequent banks would not feel confident, knowing that you’ve been rejected before. Think about it, would you lend money to somebody who has had records of rejections?


Myth #3: All the banks have the same loan approval policies.

Surprise, surprise: They all sing to a different tune! Different banks review your home loan application differently, because they don’t have the same loan policies. This is because banks have different risk appetites, and customer profile preferences.

For example, some banks prefer to offer loans to fixed income earners only, while others are more flexible with variable income earners, such as freelancers and commission-based jobs. In summary, you need to ensure you’ve checked all the rules and requirements, so you can apply at the right bank.


Myth #4: I know how much to budget for the property I want to buy, just by using any free loan calculator I find online.

If you do this, you’ll soon realise that you may be way off mark! Most free calculators you find online are inaccurate because they were created for the mass market. They’re not personalised to your own financial situation, in particular, your credit score.

Because of this, you end up getting inaccurate results about your eligible loan amount, which then causes you to get rejected by the banks. And you already know by now that, once you get rejected the first time, you’re likely to be rejected again. Always be sure of the home loan amount you are eligible to get before you submit a loan application!

PropertyGuru Loan Pre-Approval


Now that you’re aware of what to look out for, you’re one step closer to owning your dream home!

But you could still use a little EXTRA help! This is why at PropertyGuru, we came up with something for property-seekers like yourself to avoid loan rejection. Introducing the free-to-use, 99.9% accurate, PropertyGuru Loan Pre-Approval!

PropertyGuru Loan Pre-Approval is the only loan solution that allows you to know for sure how much home loan you’re eligible to get from the bank! With this, you can:

  • Verify your eligible loan amount online instantly, so you know the price range of properties to focus your search on.
  • Search for a home based on your eligible loan amount, making it easier and more precise than ever before.
  • Submit your Pre-Approved property to PropertyGuru’s bank partners, and get better interest rates for your loan… so you get to save more!

Here’s how you can get Pre-Approved in just 5 minutes:

1) Fill in your basic details.

PropertyGuru Loan Pre-Approval basic details

2) Add your basic monthly income and fixed monthly allowance.

PropertyGuru Loan Pre-Approval income information

3) Snap a picture of your MyKad for verification purposes.

PropertyGuru Loan Pre-Approval mykad upload

4) You’ll immediately find out how much home loan you can get from the bank for sure, including an accurate DSR score.

PropertyGuru Loan Pre-Approval final report

PropertyGuru Tip: The Debt-Service Ratio (DSR) is a method used by banks to calculate whether or not you can afford the loan you’re applying for. The lower your score, the higher your chance of a getting a home loan.

Now that you’ve done the most important step, PropertyGuru will match you with properties you desire and can afford.

PropertyGuru Loan Pre-Approval properties list

And once you’ve shortlisted your desired properties, just follow the instructions online for PropertyGuru’s partner banks to offer you the best home loan packages to help you save more!

Be empowered to own your home today. Search for Propertyguru Loan Pre-Approval and Get Pre-Approved now to secure your home loan!


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