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 per month or less 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:
- Are you able to set aside 20% of your salary monthly, dedicatedly?
- 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 exponantially? 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 | 35 years old |
| Gross Income Requirement | Not more than RM3,000 per month per borrower, applicable to both single and joint borrower (Beginning 2013, it is raised to RM5,000 per month) |
| Employment Status |
Confirmed Employee with minimum employment of 6 months with the same employee. (From January 2013, requirement for minimum employment of 6 month will be abolished. For more info click here) |
| Other Requirements |
- Must be first time home buyer (From January 2013, requirement for saving record of 3 month installment will be abolished,For more info click here) |
| Property Type | Residential properties in Malaysia only |
| Status of Completion | Under construction or completed properties |
| Minimum Property Value | RM100,000 |
| Maximum Property Value | RM220,000 (Beginning 2013, this is raised to RM400,000) |
| Maximum Tenure | 35 years, or age not exceeding 65 years, whichever is lower |
| Type of Facility | Amortizing Facility. This is a Non Full-Flexi loan |
| Installment 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. Also, for all the government's intention, statistically, due to the strict filtering assessment by individual banks, only only 1 out of every 10 persons applying for this scheme are successful in their applications.
If you would like to find out more about SRP, visit http://www.srp.com.my
Conclusion
If you are eligible for 100% financing under Skim Rumah Pertamaku, you can make use of our Home Loan Comparison tool to find the best home loan available, then proceed to apply for 100% financing via Loanstreet. It is hassle-free and fast.
And even if you don’t qualify for this scheme, Loanstreet still has all the best and cheapest housing loan packages for you to choose from to help you get the most out of your mortgage.
