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My First Home Scheme FAQ

Referring to below frequent asked questions if you are confuse about My First Home Scheme.

1. What is My First Home Scheme (Skim Rumah Pertamaku [SRP]) all about?

My First Home Scheme is among the list of measures lately introduced by the Malaysia Government in year 2011 Budget targeted in helping young people who monthly incomes are of RM3,000 or less to be able to buy a house. My First Home Scheme enables home buyers to get as much as 100% loans from banking institutions, allowing these people to own a house.

With the help of Cagamas SRP Berhad, they are going to guarantee the banks on financing above 90% of the total loan. For example, if a borrower gets 100% financing, Cagamas SRP is going to guarantee 10% ( from90% to 100%) of the loan.

2. Does this means that borrowers under My First Home Scheme are only liable to the financial institution for 90% financing with the guarantee from Cagamas SRP Berhad?

No, once the loans are granted, the borrowers are liable full financing amount (up to 100%) to the financial institution. The guarantee only indemnifies the financial institution for any loss incurred resulting from loans over 90% level.

3. As a borrower, will I need to pay a higher interest or any fee to entitle for up to 100% loan under this My First Home Scheme?

No, the normal interest rate or profit rates of different banks should be applied and borrowers are not required to pay for anything for the guarantee from Cagamas SRP Berhad.

4. Who is qualify for My First Home Scheme?

The scheme is open up for all citizen of Malaysian with aged 35 years old or below with the earning that is not over RM3,000 per month.

5. I’m self employed and my spouse monthly income is RM2,000. Are we qualify for joint applicants under the Scheme?

No, all applicants (joint applicants are included) need to meet the citizenship, age, employment, income and first home criteria.

6. Me and my spouse having income of RM1,500 per month each one. We want to get 100% financing for buying our first home that valued at RM220,000. Are we eligible for the scheme?

Under the Scheme, the financing repayment amount per month can’t be more than one third of borrower’s monthly combined earning; in this case, RM1,000 per month as the financing is taking affordability under consideration.

How it calculates:

Gross combined earning : RM1,500 + RM1,500= RM3,000
1/3 of RM3,000 = RM1,000

According to existing interest rates and granted maximum 30 years of financing tenure, the maximum loan amount that you are qualify is about RM200,000. To get this RM220,000 loan, your combined monthly earning must be somewhere around RM3,300.

7. Me and my friend meet all the criteria. Can I join with my friend to apply loan under My First Home Scheme?

No, joint applicants only apply to family members or next of kin. For example husband and wife or siblings only who are meet all the stipulated criteria.

8. Is the Scheme only cover completed properties or even properties that are under construction?

Yes, My First Home Scheme is covers both under construction and completed properties. The guarantee is take effect once full disbursement of the loan.

9. Me and my spouse purchased a house for RM220,000. Are we eligible for RM220,000 loan in case we meet the income criteria?

Valuation of the property is subject to the underwriting policy of the bank. Commonly, banks will issue the loan that are of the property buying price or valuation (open market value) from bank’s panel valuer. Which ever is lower come first.

10. My current loan was taken up for buying my first home. Can I refinance the loan under the Scheme?

Of course no. My First Home Scheme is not applicable for refinancing of any existing loan.

11. Is there any limitation on locations or residential properties types under the Scheme?

This is going to depends on the underwriting policies of respective bank for the type of residential properties and locations limitation if any.

12. How do I apply for financing under the Scheme?

Malaysia government had appointed below financial institutions to assist with My First Home Programme which are as follow:

1. Affin Bank Bhd
2. Affin Islamic Bank Bhd
3. Alliance Bank Malaysia Bhd
4. Alliance Islamic Bank Malaysia Bhd
5. AmBank Bhd
6. AmIslamic Bank Bhd
7. Bank Islam Malaysia Bhd
8. Bank Muamalat Malaysia Bhd
9. CIMB Bank Bhd
10. CIMB Islamic Bank Bhd
11. EON Bank Bhd
12. EONCAP Islamic Bank Bhd
13. Hong Leong Bank Bhd
14. Hong Leong Islamic Bank Bhd.
15. Maybank Bhd
16. Maybank Islamic Bank Bhd
17. OCBC Bank Malaysia Bhd
18. OCBC Al Amin Bhd
19. Public Bank Bhd
20. Public Islamic Bank Bhd
21. RHB Bank Bhd
22. RHB Islamic Bank Bhd
23. United Overseas Bank Malaysia Bhd
24. Standard Chartered Bank Malaysia Bhd
25. Standard Chartered Saadiq Bhd
26. Cagamas Bhd.

13. Can I go to apply for Islamic financing under the Scheme?

Yes, the scheme is covers both conventional as well as Islamic loan financing.

14. What is the maximum tenure of the loan?

The maximum tenure of the loan is up to 30 years but is subject to underwriting policies of respective financial institutions.

15. Should I buy fire insurance, Takaful, Mortgage Reducing Term Assurance (MRTA), or Mortgage Reducing Term Takaful (MRTT) ?

All borrowers are required to buy fire insurance or Takaful. But for MRTA or MRTT, it will depends on the underwriting policies of respective bank.

16. It is mean that I don’t have to pay any down payment if I go with 100% financing under the Scheme?

The home buyer will have to pay for a booking fee and/or deposit to the home seller under the Sale and Purchase Agreement terms awaiting disbursement of the housing loan by the financial institution. Once all the required loan documentation been received and processed, the home buyer will be reimbursed from the disbursement from financial institution of the loan. The home buyer may then can arrange with the home seller for deferment of deposit payment while waiting for disbursement from the financial institution. However, this arrangement will need to depende on the willingness of home seller whether they want to go for such accommodation or not.

* Note: The My First Home Scheme FAQ tend to be for illustration only. We( are not going to liable for any damages or losses result by it. Those interest applicant may well approach to the appointed financial institutions for better understanding of their terms and conditions. Hope you are getting success to purchase your first dream home with My First Home Scheme.