Guidelines to buy your first house !

House or unit? For first home buyers the decision often comes down to price. Property buying through applying loan is seemed as the only way to acquire the first house for city dweller with moderate income. Like most developing countries, Malaysia has gone through tremendous changes in policies. These policies, though targeted at property speculators, are also affecting genuine home buyers. Bank Negara said it would continue to closely monitor lending to lower-income households, noting that families earning below RM3,000 a month had higher leverage positions than those in other income groups and hence, would be more vulnerable to income shocks.

Breakdown of My First Home Scheme

Why is it perfect for first-time home buyers?
• A loan tailored for first-time home buyers, it provides 100% financing so no need for 10% down payment. Plus, home buyers pay normal interest rates of the respective banks.

Who Is Eligible?
• Malaysian citizens
• First time home-buyers
• Individuals or couples (husband & wife or siblings) up to age 35 years
• Private sector employees only (including couples)
• Income not exceeding RM5,000/month for individuals or combined income of RM10,000/month for couples (based on gross maximum income of RM5,000/month per individual)
• Individuals/couples with minimum employment of over 6 months with same employer
• Repayment of total financial obligation must not be more than 60% of the net monthly income or maximum financing limit of the participating bank, whichever is lower

Eligible Property
• Residential properties in Malaysia
• Minimum property value of RM100,000 and maximum of RM400,000
• Completed properties or those under development
• The home must be occupied by buyer and not for investment purposes
• For leasehold properties, with a minimum of 60 years remaining

Financing Requirements
• Tenure for repayment not exceeding 40 years, subject to borrower's age not exceeding 65 years at the end of financing tenure
• Amortizing facility only (no redraw features)
• Installments payable via monthly salary deduction of standing instruction
• Compulsory Fire Insurance/Takaful

Participating Banks
Affin Bank
Alliance Bank
Alliance Islamic Bank
AmBank
AmIslamic Bank
Bank Islam
Bank Muamalat
CIMB Bank
CIMB Islamic
Hong Leong Bank
Hong Leong Islamic Bank
Maybank
Maybank Islamic
OCBC Bank
OCBC Al-Amin
Public Bank
Public Islamic Bank
RHB Bank
RHB Islamic Bank
Standard Chartered
Standard Chartered Saadiq
UOB Bank

(Information taken from Skim Rumah Pertamaku website- www.srp.com.my)

*Good To Know
First-time buyers should take note that they need to pay for a booking fee or deposit out of their pockets initially, pending disbursement of the home financing by the bank, based on the requirements of the seller.