{"id":18710,"date":"2020-12-09T19:00:00","date_gmt":"2020-12-09T11:00:00","guid":{"rendered":"https:\/\/www.comparehero.my\/blog\/uncategorized\/rent-to-own-scheme.html"},"modified":"2026-03-26T16:02:05","modified_gmt":"2026-03-26T08:02:05","slug":"rent-to-own-scheme","status":"publish","type":"post","link":"https:\/\/www.comparehero.my\/blog\/properties\/rent-to-own-scheme.html","title":{"rendered":"What Is Malaysia\u2019s Rent-To-Own (RTO) Scheme All About?"},"content":{"rendered":"\n

A Rent-To-Own (RTO) agreement is a contract that gives you the option to buy a rental property in the future. Read this article to find out how it works in Malaysia and the pros and cons you need to consider before opting for it.<\/strong><\/p> \n

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Though many people dream of the perfect home, it\u2019s not that easy to find the \u201cright\u201d house, especially with escalating housing prices<\/a> and the rising cost of living<\/a> in general.<\/p> \n

In a news report, Bank Negara\u2019s Director of Financial Surveillance Department Qaiser Iskandar Anwarudin said most Malaysians could not afford to buy newly-launched houses with an average price of RM417,262, and that the maximum affordable house price nationwide was at RM282,000.<\/p> \n

\u201cThe affordability (in Malaysia) has deteriorated with the median multiple affordability (the ratio of house price to households\u2019 annual income) rising to 4.8 times in 2016 from 3.9 times in 2012,\u201d he said. Data also shows that income and house prices have not been growing in tandem over the years.<\/p> \n

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Although wages have not grown – and even decreased due to inflation – housing prices remain flat instead of progressing with the value of salaries and wages. (Image source: The Edge<\/a>)<\/em><\/p> \n

But not all hope is lost. Through the government\u2019s Rent-To-Own Scheme (RTO), more Malaysians could own a property at a more affordable rate.<\/p> \n

Though the scheme is still in its relative infancy in Malaysia, rent-to-own or rental-purchase concepts have been a regular practice globally for some time.<\/p> \n

Related: <\/strong>Budget 2021: What\u2019s In It For The Real Estate Sector and Property Buyers?<\/a><\/p> \n

How does a Rent-To-Own Scheme work in Malaysia?<\/h2> \n

Essentially it is a \u201clease-purchase\u201d agreement signed between the buyer and the developer, giving the buyer the option to buy the rental at a specific future date after a certain period of years. In the meantime, the buyer may rent the property to \u201ctest it out.\u201d Isn\u2019t that cool?!<\/p> \n

The duration is subjective and depends on individual circumstances. Some may rent it for five years, and others might rent it out much longer like for 10 years. At the end of this contract, the buyer may exercise the option to purchase the property<\/a>. And that folks, is how it gets the name: rent-to-own.<\/p> \n

Another common attractive feature of this scheme is buyers are not required to fork out large sums of money for the down payment, which is a typical requirement when buying a house in Malaysia.<\/p> \n

What Rent-To-Own Schemes are available in Malaysia?<\/h2> \n

See below if you are eligible for some of the RTOs in Malaysia, which include the Maybank HouzKEY, Skim Smart Sewa, and PR1MA.<\/p> \n

1. Maybank HouzKEY<\/a><\/h3> \n

Benefits<\/strong><\/p> \n