If you are a Malaysian with low to middle income looking to buy your first house, PR1MA housing project could be the right fit for you. However, you will have to secure the right loan to buy your home.

The PR1MA housing project is an initiative by the government to build houses at affordable prices to help Malaysians buying a house. All Malaysians who are 21 years old and above, single or married with an individual or combined household income between RM2,100 to RM15,000 are eligible to apply for PR1MA house.

To ease your search for an affordable loan, we have listed several financing alternatives below:

• My First Home Scheme

My First Home Scheme (SRP) is a government initiative that offers:

• 100% financing, i.e. no need for 10% down payment
• Single borrower gross income not exceeding RM5,000 per month and joint borrowers’ gross income not exceeding RM10,000 per month (based on gross maximum income of RM5,000 per month per borrower)
• Property value between RM100,000 and RM400,000
• Must occupy property upon purchase
• Financing tenure not exceeding 40 years, or not more than 65 years old
• Installment payable via monthly salary deduction
• Compulsory fire insurance / Takaful
• Amortising facility only, without re-drawable features

This is the list of participating banks in the financing scheme.

• Skim Pembiayaan Fleksibel (SPEF)

This is an exclusive scheme for PR1MA homebuyers, offering a financing package that consists of:

• Stepped-up financing with fixed instalment for the first five years of the loan
• EPF Account 2 withdrawal for PR1MA home instalment up to retirement or end of tenure

The scheme is established in collaboration with Bank Negara Malaysia (BNM), EPF and four local banks, namely Maybank, CIMB, RHB, and AmBank.

• MyDeposit Scheme (For Down Payment)

This scheme mainly helps first-time homebuyers cover the 10% of down payment, or a maximum of RM30,000, whichever is lower.

If you are purchasing an RM500,000 property, you will still need to come up with RM20,000 cash on your own, on top of the RM30,000 covered by MyDeposit scheme.

• EPF Account 2 Withdrawal

You can choose to withdraw from your Employee Provident Funds (EPF) Account 2 to support your property purchases given:

• You are buying a residential house
• Your financing option has been approved by the bank
• SPA has been signed but not more than three years
• Never make a withdrawal for house purchase

Find out more details about EPF Withdrawal to buy a House here.

Before making a decision to buy your first house, you should know the property prices you can afford with your income level. You should ensure you have enough savings and financial capabilities in order to afford the house that suits you.

For more tips about personal finance, visit CompareHero.my!