Affordable Housing Schemes In Malaysia For First-Time Buyers

Home prices have skyrocketed over the past few years, but our income has not kept pace. Saving for a down payment on a home can take years, while paying off a mortgage for a home that isn’t affordable can be difficult.

One way to ease the burden may be an affordable housing program. These programs offer either low- and medium-cost housing solutions or funding to help cover the initial housing costs.

But which plans are you eligible for? Here is your guide to affordable housing programs in Malaysia.

List of Affordable Housing Programs in Malaysia

Here is a summary of the programs available:

SchemeType of assistanceEligible propertiesIncome eligibility
Perumahan Rakyat 1 MalaysiaAffordable housing, financing up to 110%RM100,000 to RM400,000RM2,500 to RM15,000
My first house projectFinancing up to 110%Maximum RM500,000Single applicants: RM5,000

Common applicants: RM 5001 to RM 10,000 (maximum RM 5,000 per applicant)

BSN MyHome (Perumahan Rakyat Program)Financing up to 100%Loan amount from 25,000 RM to 300,000 RMMinimum RM1,000
My Selangor houseAffordable housingRM42,000 to RM250,000RM3,000 to RM10,000
Residensi WilayahAffordable housingRM52,000 to RM300,000Single applicants: RM 10,000

Joint applicants: RM15,000

Perumahan Penjawat Awam MalaysiaAffordable housing for public servantsRM90,000 to RM300,000Not indicated

Perumahan Rakyat 1 Malaysia (PR1MA)

PR1MA aims to provide “affordable and high quality homes inspired by modern living concepts for middle income Malays”. Its homes are available in a variety of sizes and types of units, including apartments and terraces. Their price is between 100,000 RM and 400,000 RM.

Eligible buyers can obtain financing of up to 110% of the Purchase and Sale Price (PPS) from participating banks. It also has an upcoming hire-purchase program, which is slated to launch in June 2021.

To apply, you can create an account on the PR1MA website.

Eligible applicants:

  • Malaysian citizen
  • Single or married, aged 21 and over
  • Individual or combined gross monthly income of the household (husband and wife) between RM 2,500 and RM 15,000
  • A PR1MA home can only be purchased as a first or second home

My first house project

The My First Home program (or Skim Rumah Pertamaku) allows first-time home buyers to obtain up to 110% financing from participating banks. The scheme covers residential properties completed and under development, in the primary or secondary market. However, the locations and types of eligible properties are subject to the underwriting policies of the participating banks.

To apply, you can visit the branch of any participating bank.

Eligible applicants:

  • Malaysian citizen
  • First home buyer
  • Employee or self-employed
  • Single or joint applicants
  • Gross monthly household income:
    • Up to RM5,000 for single or joint applicants
    • Between RM5001 and RM10,000 for co-applicants (subject to a maximum gross monthly household income of RM5,000 per applicant)
  • No impaired financing records in the last 12 months

Eligible properties:

  • Located in Malaysia
  • Maximum property value of RM500,000
  • Buyers are required to reside in the property

BSN MyHome (Perumahan Rakyat Program)

BSN MyHome offers funding of up to 100% to those who are self-employed or have irregular income. The regime is only applicable for low cost and medium cost properties.

To apply, you can visit any BSN branch.

Eligible applicants:

  • Malaysian citizen
  • 18 to 60 years old; 65 or under at the end of the term
  • Minimum income of 1000 RM per month
  • No home loan with any financial institution
  • Holder of a BSN Giro / i account
  • Security deposit equivalent to three months of monthly payments

Eligible properties:

  • Buying a house for self-occupancy
  • Loan amount from 25,000 RM to 300,000 RM

My Selangor house

My Selangor house, or Rumah selangorku, provides affordable housing to those who live in the state. It offers residential properties valued between RM42,000 and RM250,000.

To apply, you can register on the My Selangor Home site.

Eligible applicants:

  • Malaysian citizen
  • 18 years and over
  • Does not already own a house in Selangor
  • For type A houses: maximum of RM3,000 monthly household income
  • For type B, C and D houses: between RM3,001 and RM10,000 monthly household income

Residensi Wilayah

Residensi Wilayah (formerly RUMAHWIP) provides affordable housing to those who live or work in the Federal Territories of Malaysia (Kuala Lumpur, Labuan and Putrajaya). Its properties are valued between RM52,000 and RM300,000.

To apply, you can create an account on the Residensi Wilayah website.

Eligible applicants:

  • Malaysian citizen
  • 21 years and over
  • Born, living or working in a federal territory
  • Single borrowers: Maximum gross monthly income of RM 10,000
  • Joint borrowers: maximum gross monthly income of RM15,000

Perumahan Penjawat Awam Malaysia

Perumahan Penjawat Awam Malaysia (PPAM) is a housing program aimed specifically at Malaysian civil servants. It provides affordable homes between RM90,000 and RM300,000 to eligible people.

To apply, you can create an account on the PPAM website.

Eligible applicants:

  • Malaysian citizen
  • Civil servant (contractual or permanent)
  • Retired civil servant and holder of a retirement card

What does the application process really look like?

How easy is it to apply for these schemes? We reached out to Li Rong, a 33-year-old school administrator and former public servant, to ask her about her experience applying for a PR1MA home.

“I voted for Brickfields. I think it was at the end of 2017 that I applied, ”she said. “The process was pretty straightforward. The PR1MA website was very easy to navigate in terms of finding information and filling out forms. “

In March 2018, she received a letter of invitation to a PR1MA showcase event, where she could select her unit. “It took place at PWTC and many PR1MA properties were on display. There was also a CCRIS counter where they asked for your fingerprint to check your credit score. It was mandatory to get it before you could access your property. “

“They had models of the building displayed with unit numbers, like the typical property showrooms, so that I could easily select which floor and where it faces,” Li Rong said.

She added that there was also a window for loan applications, where they helped her with the loan application. “It was also a pretty straightforward process.”

Although their application process was relatively quick, it can vary from person to person. PR1MA selects candidates through a random voting process. Li Rong’s colleague who voted for a PR1MA house in Bukit Jalil was chosen within weeks. Others are not so lucky – iProperty noted that some Malaysians had been on the waiting list for years.

Currently, Li Rong’s Brickfields unit is still under construction. PR1MA’s website says it is 17% complete, with construction scheduled for December 31, 2022.

What else can you do?

Eligibility for any of these programs may not automatically resolve your housing issues. The Edge points out that even if you’ve been successful in securing a home, making a down payment can be a challenge. And if you go for 100% financing, it would increase your monthly repayment.

On the upside, the 2021 budget deployed some homeownership incentives. This includes an exemption from stamp duty for first-time buyers until 2025, for houses priced up to RM500,000. This exemption could mean saving up to thousands of ringgit on the purchase of your first home.

If you need help with your down payment, you can also consider withdrawing your savings from the Employee Provident Fund (FPE). But it will affect your retirement savings, so it’s not a decision to be taken lightly.

Don’t know what you can afford? Use iMoney’s home loan calculator to calculate your loan interest and monthly repayment.

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Jothi Venkat

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