My First Home Scheme (a.k.a. Skim Rumah Pertamaku, SRP) was just launched by the government of Malaysia, aimed to help younger segments to buy their first home.
Without the scheme, most bank only offer up to a maximum of 90% financing for housing loan, and the home buyer need to prepare for the first 10% of the house, partially paid as the down payment or booking fee before S&P agreement is signed, with the rest payable within a very short period of time right after S&P agreement signed.
Under the scheme, mortgage borrower can obtain 100% housing loan from the participating banks. Cagamas SRP Berhad (a unit under Bank Negara) will guarantee the bank on financing above the 90% level. Borrower is liable to the bank for the full financing amount (up to 100%), and the guarantee indemnifies the bank for any loss incurred as a result of financing above 90%.
Here are some of the information I gathered about this My First Home Scheme:
- Borrower must be an employee in the private sector (not applicable to self-employed, non-employed or government servant)
- Borrower must be employed for more than 6 months with the same employer (not applicable for employee still under probation period)
- Borrower must be a Malaysian
- Borrower gross monthly income must not exceed RM3000
- Borrower's age must not exceed 35 years old
- The property must be a residential unit
- The property can be completed or being developed
- The property can be from developer or from existing owner
- The property must be the first property under the borrower's name
- The property must be occupied by the borrower (must not be rented out or keep vacant)
- Cost of property within the range of RM100k to RM220k
- Not applicable to refinancing existing property
- Available for both conventional and Islamic housing loans
- Not available for flexible home loan or any housing loan with redrawable features
- Compulsory fire insurance/takaful. Depends on the bank if MRTA/MRTT/MLTA is also compulsory or not
- Maximum financing tenure is 30 years
- Monthly financing repayment amount should not be more than 1/3 of borrower’s monthly gross income. This may be increased to a maximum of 1/2 of borrower's monthly gross income, subjected to approval from the bank.
- Joint application is only applicable to family member only (spouse or siblings)
- All applicants in joint application must meet all the requirements above, including citizenship, first home, employment, age, income criteria, etc.
- Affin Bank
- Alliance Bank
- Bank Islam
- Bank Muamalat
- CIMB Bank
- EON Bank
- Hong Leong Bank
- OCBC Bank
- Public Bank
- Standard Chartered
Disclaimer: The above information is gathered from several reliable sources. I have no guarantee nor liability on its total correctness. Please verify the information by yourself.