My First Home Scheme (Skim Rumah Pertamaku) is a government housing financing facility that offers young individuals with loans in order to help them buy their first property. The facility provides you with a high financing at competitive rates of interest.
Let’s take a look at the interest rates offered by participating banks:
|Bank/Financial Institution||Interest Rate/Profit Rate|
|Affin Bank||(BR + 1.01)% p.a.|
|Base Rate (BR) = 4.10% p.a.|
|AmBank||(BR + 0.65)% p.a.|
|Base Rate (BR) = 4.10% p.a.|
|Bank Islam||(BR + 0.80)% p.a.|
|Base Rate (BR) = 3.90% p.a.|
|CIMB||Up to (BR + 1.45)% p.a.|
|Base Rate (BR) = 4.15% p.a.|
|Hong Leong Bank||Base Rate = 4.03% p.a.|
|OCBC||Base financing rate = 7.01% p.a.|
|Mortgage lending rate = 5.70% p.a.|
|Base rate = 4.08% p.a.|
|RHB||(BR + 1.10)% p.a.|
|Base Rate (BR) = 3.65% p.a.|
Features and Benefits
Here are the features and benefits of this housing scheme:
- Get up to 100% of financing with this facility.
- Choose from a flexible range of tenures available that can be extended to 35 years.
- You don’t have to pay 10% down payment or any kind of deposit with this scheme.
- Covers residential properties only.
- Buy properties that have a valuation of RM100,000 to RM400,000 with this scheme.
- Obtain funds for buying a residential property that is owner occupied.
- Pay monthly instalments via convenient methods of payment like standing instruction and monthly salary deduction.
Here are the banks that offer you loans under My First Home Scheme:
- Affin Bank
- Alliance Bank
- Alliance Islamic Bank
- AmIslamic Bank
- Bank Islam
- Bank Muamalat
- CIMB Bank
- CIMB Islamic
- Hong Leong Bank
- Hong Leong Islamic Bank
- Maybank Islamic
- OCBC Bank
- OCBC Al-Amin
- Public Bank
- Public Islamic Bank
- RHB Islamic Bank
- Standard Chartered
- Standard Chartered Saadiq
- Should be 18-35 years old at the time of application.
- Must not exceed your retirement age before the facility reaches its maturity.
- Should be a Malaysian citizen.
- Should be a first-time home-buyer.
- Must have a monthly income of RM5,000 or less.
- If you’re applying on a joint basis, the gross income must not exceed RM10,000 per month.
- The repayment obligation must not be more than 60% of your income.
- Identity proof, i.e. MyKad.
- One of the following documents:
- Three months’ salary slips.
- Latest EPF statement.
- Latest EA form.
- Employment confirmation letter with details such as name, designation, monthly income, date of joining, and retirement date.
- BE or B form with recent tax payment receipt.
How to Apply
You can apply for My First Home Scheme via any of the participating banks through online channels of the bank or by directly walking into the nearest branch of the bank. You are required to submit the required documents and fill up the application form with the necessary details.
Fees and Charges
|Stamp Duty||As per the Stamp Duty Act, 1949.|
|Processing Fee||RM0-RM212 (May vary from bank to bank).|
|Monthly instalment||Calculated on the basis of loan amount disbursed, tenure of the loan, and the prevailing rates of the bank.|
|Late payment charges||1% of the instalment due calculated on a daily basis.|
|Takaful protection||Depends upon the loan amount, tenure of the loan, interest rates, and age of the borrower.|
My First Home Scheme is dedicated to help young adults to own their first house. With the facility, you don’t have to pay a 10% down payment and can get up to 100% of the financing to build or buy your first home. This scheme comes with competitive rates and can be applied for via any of the participating banks.
Q. Does My First Home Scheme come with a redraw facility?
A. No, the facility doesn’t come with a redraw feature.
Q. Do I have to take takaful protection with this scheme?
A. Yes, it is mandatory to take up the takaful protection on your loan.
Q. Can I apply for a residential property on a joint basis with my friend/colleague?
A. No, only immediate family members are eligible for joint application.
Q. What kind of properties does this plan cover?
A. The facility covers completed as well as under-construction residential properties.
Q. I already have a home loan facility for my first home. Can I refinance to the My First Home Scheme?
A. No, refinancing is not available with this scheme.
Q. Can I apply for Islamic financing under this facility?
A. Yes, you can choose from conventional and Islamic financing with this scheme.
News About My First Home
Home Loan Application Process Gets Simpler For First-Time Home Buyers
The Malaysian Government reconsidered the loan application process for the first-time home buyers. Prime Minister Tun Dr. Mahathir Mohamad announced that they are coming up with a new home loan application procedure for the young generation who buy their first home.
Dr. Mahathir said that the government has realised that the banking regulations have been very stringent, thereby making it difficult for the public to own house. He announced about introducing new procedure and loosening the strict rules after a cabinet meeting.
Zuraida said that as part of the new plans towards improving housing, the ministry will make efforts to change the mentality of the citizens towards housing, especially the low-income earners. A self-renting scheme will be brought in action for the B40 and M40 groups.
When asked about the complexity of getting a housing loan approved, Zuraida revealed about the discussion with the Economic Affairs Minister on the issue. And, she mentioned that the ministry will come up with a solution that will be a win-win to the public and the banks.
The Housing and Local Government Minister Zuraida Kamaruddin had recently given a press statement on making housing an affordable and comfortable option for Bottom-40 and Middle-40 groups. She also announced that she would discuss the matter with the Finance Minister and Bank Negara Malaysia.
26th June 2018