Malaysia Building Society Berhad is a participating financial institution for the SRP My First Home Scheme. This scheme allows individuals to obtain a housing loan with a finance margin of up to 100% with incomes lower than RM 5000 per month. This scheme was introduced in 201 budget and is a means for the government to increase home ownership. The scheme is specifically designed for young working individuals who are first time home buyers. The details of the MBSB My First Home Scheme are as follows
Features of the MBSB My First Home Scheme
- The loan is designed for young working individuals.
- The loan provides a high margin of finance and offers 100% of the finance margin.
- The loan is a term loan with a lock-in period of 5 years.
- The loan is available for a tenure of 35 years provided the age of the applicant does not exceed 65 years at the end of the financing tenure.
- The loan can be availed for properties that have a minimum value of RM 100,000 and a maximum value of RM 500,000
- The property has to be residential properties that are either fully constructed or under construction.
- The loan can be availed either by a single applicant or a joint applicant.
Benefits of the MBSB My First Home Scheme
- The loan is designed for individuals with low incomes that does not exceed RM 5000 a month.
- The loan offers 100% finance margin thereby helping young individuals who just started working to purchase a home without having to worry about coming up with a 10% down payment.
- The loan has a long repayment tenure of up to 35 years as long as the applicant does not exceed the age of 65 years at the time of completion of the loan tenure.
Interest rates of the MBSB My First Home Scheme
The interest rates offered by the MBSB for the My First Home Scheme is a floating type interest and may vary on each instalment. The interest rate offered for any loan amount between RM 100,000 to RM 500,000 is 5.85% p.a. The effective interest rate will be decided by the bank at the time of approval of the loan.
Eligibility Criteria for the MBSB My First Home Scheme
- The minimum age of the borrower must be 18 years as at last birthday.
- The maximum age of the borrower cannot exceed 35 years as at last birthday.
- The maximum tenure is 35 years provided age of the applicant does not exceed 65 years at end of tenure.
- The applicant must have an income that does not exceed RM 5000 a month.
- In case of joint applicants, the gross monthly combined income or gross household income cannot exceed RM 10,000.
- The applicant must be a first time home buyer.
- The applicant must be a salaried applicant.
- The property must be a residential property. The property can be fully constructed or under construction.
- The minimum value of the property should be RM 100,000 and the maximum value of the property is RM 500,000.
- The property must be owner occupied.
Documents required for the MBSB My First Home Scheme
- The applicant must submit a copy of the identification card
- The latest 3 months of salary slips.
- The latest bank statement dating back 3 months reflecting the salary credited
- The latest EA statement.
- A letter of employment confirmation disclosing details of the income, job title etc.
- The purchase and sale agreement.
Fees and charges of the MBSB My First Home Scheme
- The MBSB My First Home Scheme has a processing fee of RM 53
- The late payment attracts a penalty fee which is 1% p.a. of the outstanding amount
- The request for redemption letter attracts a fee of RM 106
- The EPF withdrawal request attracts a fee of RM 53
- The penalty fee for early settlement is subject to terms and conditions set forth by the bank at the time of loan approval.
- The fees and charges set by the bank are subject to changes as per the discretion of the bank and may change during approval of the loan or during the tenure of the loan.
Frequently Asked Questions
Q) Can the property be rented out?
A) No. The loan is designed for first time home buyers who have lower incomes and hence helps them buy their first property by providing longer repayment tenures and 100% finance margin. The property purchased must be owner occupied, that is, the owner must reside in the property purchased. It cannot be rented out and used as an investment.
Q) What constitutes a joint application?
A) Joint applicants can avail this loan as long as their combined monthly income does not exceed RM 10,000. The applicants have to be family either a sibling, a parent or a spouse. Friends cannot be considered as joint applicants.
Q) Can self-employed people apply for this loan?
A) No. Only salaried people or employees can avail this loan. Self-employed people, business owners, partners or sole proprietors cannot avail this loan.
Q) What type of properties can be purchased with this loan?
A) The properties that can be purchased with this loan should be residential properties that are either fully constructed or under construction. Property being purchased cannot be a commercial property and the property purchased should be located in Malaysia.