Making housing loans easier for Filipinos | The Final Word - video Dailymotion

CNN Philippines

As Filipinos strive towards getting their own homes, this company is working to make housing loans easier for them through digitization.  We talk about MatchHome with CEO and founder Kevin Carreon.  Visit our website for more #NewsYouCanTrust: https://www.cnnphilippines.com/  Follow our social media pages:  • Facebook: https://www.facebook.com/CNNPhilippines • Instagram: https://www.instagram.com/cnnphilippines/ • Twitter: https://twitter.com/cnnphilippines

Transcript

00:00 strive towards getting their own homes.

00:02 This firm is working to make housing loans easier for them

00:06 through the digital platform.

00:08 We talk about Match Home with CEO and founder Kevin Carreon.

00:12 Kevin, great to have you with us on The Final Word.

00:15 Thank you so much for having me.

00:16 That is the dream of every Filipino to have a home,

00:20 whether it's vertical or horizontal.

00:22 Share with us, how does Match Home work?

00:25 Okay, so essentially we started processing,

00:27 automating loans for property developers.

00:29 So the challenge ever since for any home buyer is

00:34 whenever they purchase a property from a property developer,

00:38 it's like the big question, am I qualified for a loan?

00:40 So the first thing that we did was actually automate.

00:44 We created this very particular algorithm,

00:46 me coming from the banking sector myself,

00:48 the real estate industry.

00:49 So I figured out a formula basically to profile the home buyers.

00:53 We put in their profile, their age, their income, all these things,

00:56 and then we basically match them with a bank that they're qualified with.

00:58 So it eliminates the process, the fear of having to figure out

01:04 whether or not which bank they should go to.

01:06 We offer actually the best rates as well.

01:08 Well, because all banks have different qualifications for various buyers.

01:12 Yes, exactly, exactly.

01:14 So I'll give you a very great example.

01:16 So we have one buyer who wanted to purchase a property,

01:19 wanted to go to a bank, kept applying.

01:22 Unfortunately, that bank, he could afford a monthly mortgagation.

01:25 It's just that that bank did not profile him to be qualified

01:31 because they did not meet the minimum income requirement of that particular client.

01:35 But the client was actually disencouraged.

01:38 The client actually found out about us.

01:40 We helped them and basically redirected this client to the right bank.

01:43 Right. So it's all kinds of banks, whether it be the large banks,

01:46 the medium-sized banks, and even the rural banks.

01:48 Do you work across the board with all banking institutions?

01:51 Yes, and financial institutions as well.

01:53 Well, that's great.

01:55 That means you can really match a buyer to the developer.

02:00 But you also work with all the developers from the high end all the way to the low-cost housing.

02:06 Yes, that's correct.

02:07 So we were fortunate enough.

02:09 I think when the pandemic hit, it really pushed a lot of property developers to really go digital.

02:15 So I think it helped our costs.

02:17 So that's why we're about a two-year-old company,

02:21 and we were able to convince the likes of Ayala, SMDC, Vista,

02:25 to actually be our partners to digitize their loan processing.

02:30 Those are the big developers. What about the small developers?

02:33 Who are you working with?

02:35 There's quite a few.

02:37 I wouldn't want to call them small, but up-and-coming property developers.

02:41 We have the likes of Duraville.

02:45 There are several property developers outside within the Calabarzon area.

02:50 So really up-and-coming property developers.

02:53 All right, Kevin, we have a lot of real estate gaps.

02:56 There's a 6.5 million backlog in the housing market in the country.

03:02 How is the digital platform addressing this gap and narrowing it?

03:06 For instance, what we do, essentially, we're not just focusing on loans right now.

03:12 Recently, we rebranded to Match Home, and then we're basically trying to tackle all the aspects

03:17 from seeking a property to actually living in that particular property that you bought.

03:22 Really, we want to help everyone with their whole real estate journey.

03:26 The challenge right now, with the 6.5 million backlog in housing,

03:30 there's actually 200,000 production every year compared to the actual demand of 300,000 plus houses.

03:37 There is actually more demand than there is supply.

03:39 What we're trying to do is streamline everything, speed up the whole processing.

03:44 For instance, us being able to digitize loan processing for property developers,

03:48 we were able to cut down loan processing time from four months down to a month and a half.

03:53 Through that, they get to collect faster, they get to build faster.

03:57 It really helps with the whole flywheel cycle of property developers.

04:01 But what about higher interest rates?

04:03 They're now at 6.25%. That's the basic borrowing rate.

04:07 But of course, when you borrow from the bank, it could be much higher than that.

04:10 How does this influence home buying decisions and affordability?

04:13 Surprisingly, you would think that it would slow down property purchases, but it did increase.

04:19 If you were to look at home purchases from last year, it had increased by 7% already.

04:25 Even if the price did increase, actually, just recently, Pag-ibig did announce as well

04:32 that they are dropping interest rates for housing loans for them.

04:36 In any case, even if it did increase, it's just a matter of being able to afford a lesser value house.

04:42 Probably last year, I could afford a 2.5 million house.

04:45 Because of the higher interest rates, I could afford a 2.3 million peso house.

04:49 Essentially, the dream of having that home for every Filipino is still there.

04:54 Right. That's like what I said. That is really the dream of every Filipino.

04:59 It doesn't really matter which amount it is, but as long as they live in-house.

05:05 What about condominiums? Do you also deal with condominium developers and buyers?

05:10 Yes, of course. Again, we go back to the likes of Ayala, Vista, SMDC.

05:17 We do work with these property developers, to mention PhilIndex as well.

05:21 Really, across the board.

05:23 What is the trend right now in the housing market? Has it plateaued or is it continuing to rise?

05:29 It is continuing to rise. Again, it has really increased by 7% compared to last year.

05:34 But what was interesting was, if you look two years back, in terms of ratio, in terms of housing loans granted,

05:41 there was actually more housing loans granted for condominium units.

05:44 There was a shift now to more single detached houses.

05:47 People are starting to live outside of Metro Manila.

05:51 You could really see the shift there of, I guess, a lot of people got stuck in living in a condo.

05:58 Where can they find you? Where can they find Match Home?

06:02 Simply, they could visit our website at www.matchhome.ph.

06:07 In any case, we work with the property developers.

06:10 The property developers themselves endorse us to their clients.

06:14 Thank you so much. All the best to Match Home.

06:18 Thank you so much, Fran.

06:19 Kevin Carreon, the CEO of Match Home.

06:21 Thank you.

Making housing loans easier for Filipinos | The Final Word

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