This scheme is one of the initiative that has been offered by the government for first-time house buyers to obtain up to 110% financing from the participating banks. It enables home ownership without need to pay a down payment. The government want to increase the ownership among the citizens. Cagamas SRP Berhad (CSRP) will guarantee up to the first 20% on a ‘first-loss’ basis.
My First Home Scheme was first announced in 2011 Budget by the Government of Malaysia to assist first time house buyers earning a gross monthly household income up to RM 10,000 (subject to RM 5,000 per applicant) to purchase their first home.
Benefits of First home purchase:
- Up to 110% financing
- Residential property for own occupation (either under construction or a completed unit) from the primary or secondary market
Applicants who qualify for this scheme :
- Must be a Malaysian citizen
- First time house buyer
- Salaried worker or self-employed individuals
- Single or joint applicants
- Gross monthly household income:
- Up to RM5,000 – for single or joint applicant(s)
- More than RM5,000 and not more than RM10,000 – for joint applicants (subject to maximum gross monthly household income of RM5,000 per applicant)
- No record of impaired financing for the past 12 months
Eligible Properties :
- Residential properties in primary and secondary market located in Malaysia
- Maximum property value of RM500,000
- Owner occupied (buyers are required to reside in the property)
Financing Requirements
- Financing tenure not exceeding 35 years, subject to applicant’s age not exceeding 70 years at the end of financing tenure
- Amortising facility only (no redrawable features)
- Instalments payable via monthly salary deduction or standing instruction
- Compulsory fire insurance/takaful
- For purchase of property priced up to RM300,000 and for applicants with gross monthly household income of not more than RM5,000:
- Mandatory to complete the online financial education module provided by AKPK which can be accessed from AKPK’s RumahKu portal at https://learn.akpk.org.my
Especially for youth people that are planning to buy a new house this scheme will be very helpful. You do not have to worry about the hefty down payment required for the purchase of property anymore, My First Home is definitely the answer to that problem. Many people that applied for this scheme manage to get their hand on their dream-house key.
To have your own house before settling down or as self-reward is very satisfying as it is hard for younger generation to own a property in today’s economy. If you are are looking for a house, do not hesitate to contact Profere Property Management. It would be such an honor for us to help and turn your dream to reality.