• 105% Home Loan in Malaysia

    Home loans in Malaysia have been on the rise, hinting at a booming real estate market in the country. Offered at rates as low as 4% per annum, availing a home loan in Malaysia is the best possible way to ensure you get a crib without hurting your personal finances. In addition to that, several schemes started by the Malaysian government aim to help residents avail their own homes at affordable rates in an easy manner. One of such schemes is the Perumahan Rakyat 1Malaysia (PR1MA) or the 1Malaysia Housing Programme.

    1Malaysia Housing Programme

    Perumahan Rakyat 1Malaysia (PR1MA) or the 1Malaysia Housing Programme is a housing programme that is managed by the government owned company Perumahan Rakyat 1Malaysia (PR1MA) Berhad under the Ministry of Housing and Local Government.

    The program undertook the construction of 42000 houses in 20 locations at the time it was launched and each house unit was priced at 150000 to 300000 Malaysian Ringgit based on the location and size. The builders involved in the phase one of the project were Putrajaya Holdings, SP Setia, Tradewinds, Cyberview, Sime Darby Property, MRCB Resources and 1MDB. PR1MA has come a long way from there and is now a popular name among prospective house owners.

    Features of PR1MA

    PR1MA aims to lessen the burden of owning a house in Malaysia for resident citizens. The key points to note here are –

    1. Government-owned scheme

    2. Lesser interest rate than banks and other housing companies

    3. Special financing option for first time home buyer

    4. 105% of loan amount

    5. Long repayment tenure of 30 years

    6. Low salary requirement of 2500 Malaysian Ringgit

    Eligibility Criteria for PR1MA

    In order to be eligible for availing a home loan through PR1MA, one needs to satisfy the following four basic criteria –

    1. Applicant should be a Malaysian

    2. The income of the household should be within 2500 to 10000 Malaysian Ringgit

    3. Applicant shouldn’t own more than 1 property between self and spouse

    4. Applicant should be of 21 years or more

    Process of availing financing through PR1MA

    A very simple procedure allows anyone fulfilling the eligibility requirements to avail home financing. The process involves the following steps –

    1. Registration – Includes furnishing the required documents, completing the form available on PR1MA website and creating an account online therein

    2. Launch Notification – Chosen locations of the users, when activated for PR1MA projects will be sent as alerts to the registered users

    3. Application – One needs to apply for the active projects if interested and gain entry into the ballot system

    4. Balloting – A ballot system will be conducted to choose the applicants who have fulfilled all terms and conditions

    5. Verification – Post the ballot, a verification of the furnished documents will be conducted to ensure eligibility

    6. Unit Allocation – Based on what locations are available, one can choose units as per their liking in the project

    7. Financing – Better insurance coverage, end-financing options and rent-to-own schemes are made available to prospective home owners through PR1MA

    8. SPA Signing – After financing is settled, a Sales & Purchase Agreement is signed between PR1MA and the home owner

    9. Handover – Once the house is completed and the Certificate of Completion and Compliance is issued, the property will be handed over to the owner

    Required Documents to be furnished

    The following is a list of the documents that will be required for the entire procedure –

    1. Employment Details

    a. LHDN income tax file number

    b. KWSP number (if any)

    c. Household average monthly gross income

    d. Retirement number (for pensioners only)

    e. Employment details of spouse (if any)

    2. Property Information (if any)

    a. Address

    b. Size and type of property

    c. Purchase date and/or construction date

    3. Photocopies

    a. Copy of Identification Card

    b. Latest Payslip or Bank Statement

    PR1MA homes are great from the perspective of easy financing and lesser security requirements, however, these homes come with a 10-year lock-in period and can’t be sold until the period is over. So, it’s imperative for one to be careful with what kind of project one is trying to purchase and also be mindful of the location in which the house would be situated.

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