Heard of Malaysia My First Home Scheme (Skim Rumah Pertamaku) but don’t exactly know what it entails? If you are making RM5,000 per month or less, read on to find out how you may potentially benefit from it.
The “Skim Rumah Pertamaku” or My First Home Scheme was first announced in the 2011 Budget by the Malaysian Government. This is one of the good initiatives taken by the government to help young adults earning RM5,000 or less per month to get 100% financing from banks to purchase their first home.
If you have just got yourself a job which pays RM2,800 and assuming if you save 20% of your salary per month, only by the third year, you will have RM20,160 to pay for the downpayment for a property worth RM200,000. (Forget about annual increment and let’s just assume your pay is stagnant for three years) Ask yourself these two questions:
1) Are you able to set aside 20% of your salary monthly, dedicatedly?
2) Would the property that you wish to purchase be worth the same three years down the road?
For many young working adults, the answer to the above question is no. A bank staff we interviewed related the story in 2007 when she started working, a decent condominium in Petaling Jaya was about RM250,000. After saving RM25,000 by the third year, that same property no longer costed RM250,000. At that point, she said she would never have saved enough to purchase her first home unless her salary grew exponentially to keep pace with the inflation of house prices. Lucky for her, by her 3rd year, it did. But how many young adult's can expect their salaries to grow exponentially? This is especially hard to imagine for those who just started working. Well, thanks to the government, this scheme is extremely helpful for anyone who has just started working and wants to purchase their first home without having to go through the pain that she went through.
So who is eligible to apply for financing under this scheme?
| Citizenship | Malaysian only |
| Maximum Age of Applicant | 40 years old |
| Gross Income Requirement | Single applicant: Gross income not exceeding RM5,000 per month Joint applicants: Gross income not exceeding RM10,000 per month (based on gross maximum income of RM5,000/month per applicant) |
| Repayment of Total Financing Obligation | Must not be more than 60% of the net monthly income or maximum financing limit of the participating bank, whichever is lower |
| Other Requirements | - Must be first-time home buyer - Borrower must reside in the purchased property |
| Property Type | Residential properties in Malaysia only |
| Status of Completion | Under construction of completed properties |
| Minimum Property Value | RM100,000 |
| Maximum Property Value | RM500,000 |
| Maximum Tenure | Financing tenure not exceeding 35 years, subject to applicant’s age not exceeding 65 years at the end of financing tenure |
| Type of Facility | Amortizing facility. This is a non full-flexi loan. |
| Instalment Payment Method | Salary deduction or standing instruction |
| Fire Insurance / Takaful | Compulsory |
How to apply
If you qualify for all the above criteria, to apply 100% margin of finance, all you have to do is indicate to the bank officer of the participating bank that you intend to apply for a loan under the Skim Rumah Pertamaku scheme. There is usually a different form to use which indicates to the bank your intention.
Do note that not every bank in Malaysia is a participant in this scheme. You can see the full list of participating banks published by SRP. If you would like to find out more about SRP, visit http://www.srp.com.my
>> Loanstreet.com.my is a website enabling one to compare and apply for loans online.
