How To Buy Your First Home In Malaysia
*Updated on 23rd March 2017
Planning to buy your first home, but not sure about your options? Aside from the conventional home loans,we list down various government initiatives to help first time home buyers turn the dream of owning their own home into a reality.
Projek Perumahan 1Malaysia (PR1MA)
The income cap eligibility to apply and own PR1MA homes has increased from RM10,000 to RM15,000. So this means to apply you have to be a Malaysian citizen aged 21 or above with an individual or combined income (husband and wife) of between RM2,500 – RM15,000. You also need to register for an account with PR1MA on their website and then cast your ballot. A balloting process will be conducted and if you’re successful you can then select your preferred financing option.
Following the increase of income eligibility, the moratorium period where buyers of PR1MA homes are not allowed to sell their units within a given time have been reduced from 10 years to 5 years.
This initiative plans to provide affordable housing with a starting price of RM198, 000, however home units located within Klang Valley will start at RM255, 000. In terms of financing there’s the PR1MA HOPE Home Assistance Programme, which offers financial solutions either through the end financing, rent to own scheme or The Care by PR1MA scheme. Check out the detailed financing options here. As of January 2017, 231 PR1MA projects have been approved comprising of 266,400 units nationwide.
This scheme provides a subsidy of RM30,000 for first time homeowners to buy a low or medium cost property. To be eligible you need to be a Malaysian citizen, 18 years old or above first time homebuyer with a salary of between RM3,000 – RM6,000. The table below illustrates how the subsidisation works as well as the property price range that is allowed for properties in Kuala Lumpur.
You can apply for the scheme online through the MyHome scheme website or you can also get the form at the Kementerian Perumahan dan Kerajaan Tempatan (KPKT) office in Putrajaya.
My First Home Scheme
This scheme assists young adults with a gross income not exceeding RM5,000 a month or RM10,000 a month for joint applicants to own their first home. Applicants also need to be 40 years old or below and a 10-year moratorium would also apply, so buyers are not allowed to re-sell or transfer ownership of the property except to immediate family members.
Additionally, the property value you’re planning to purchase needs to be between RM100,000 – RM500,000. The scheme allows young adults to get up to 100% financing which means they won’t have to come up with the 10% downpayment.
The scheme is for those working in the private sector and applications can be done at any branch of participating banks. For a list of participating banks, check here.
Youth Housing Scheme
This partnership between BSN and the government is a special scheme for married youths aged between 25 – 40 years old with a household income not exceeding RM10,000 per month. BSN bank will provide loan of up to RM500,000 with financing tenure up to 35 years for married youths who are first time homebuyers. Applicants must be a BSN GIRO or GIROI account holder. Additionally, the government will also give 50% of stamp duty exemption for the loan agreement. Successful applicants will be eligible for 100% loan amount of the purchase price with an additional 5% of purchase price to finance for insurance (MRTA).
The government will also provide RM200 monthly aid for the first 2 years to ease the financial burden of buyers. But the scheme is only on a ‘first come first served’ basis as it is limited to 20,000 buyers or for 2 years, whichever comes first. To apply for the scheme download the application form here then submit it to any BSN bank branches.
These are for the folks who are looking to buy a home within the vicinity of Selangor. The Rumah Selangorku scheme is an effort from the Lembaga Perumahan dan Hartanah Selangor to help Malaysian aged 18 years old or above earning between RM3,000 to RM10,000 to own their first home.
Properties available range from low cost to medium cost not exceeding RM250,000, making it ideal for entry-level homeowners as well as young working adults who are looking to own a house in Selangor. Applications can be made online at their website.
For more tips on how to buy your first home in Malaysia, check out this handy CompareHero.my guide before you embark on purchasing your first home. Happy house hunting!