Buying Your First Home in 2023: Home Financing & Affordable Housing Schemes You Should Apply For

By: Agnetha Foong
29th Aug 2023
Buy & Sell

Owning their own home is a dream that many Malaysians aspire to. It represents financial security, stability, and a sense of achievement. However, many Malaysians – especially in the B40 and M40 category – are still unable to fulfil this quest due to high property prices, strict lending policies, and low affordability.

But did you know that there are actually various home buying incentives and financing schemes available to support homeownership? Read on to discover some of the options you have when it comes to owning your dream home.

  1. BSN MyHome (Program Perumahan Rakyat)

    This initiative by Bank Simpanan Nasional (BSN) is designed to help those who are self-employed or with irregular income to own a home.

    Some of its key features and benefits include:

    • Financing up to RM300,000.
    • Financing margin up to 100% (inclusive of MRTA / MRTT & LTHOT).
    • Financing period up to 35 years.
    • For financing of first home and for own residence only.
    • Minimum income of only RM1,000 per month.

    Apply here: 

  2. The Housing Credit Guarantee Scheme (Skim Jaminan Kredit Perumahan)

    The Government of Malaysia set up SJKP to assist those without steady income in obtaining financing facilities to purchase their dream home. On 24th February 2023 through the revised Budget 2023, it was announced that RM5 billion would be allocated for Housing Credit Guarantee Scheme with a higher financing limit of up to RM500,000 (previously RM400,000).

    Other features include:

    • *More than 100% guarantee coverage on financing amount obtained from participating Financial Institutions (Including principal financing amount, MRTA/ MRTT, LTHO, solicitor’s fee and valuation fee). *Subject to financing not exceeding RM500,000
    • For financing of first home and for own residence only.
    • Open to newly completed or under construction or sub-sale or auctioned residential property.

    Apply here:

  3. Stamp Duty Exemption

    Also announced during the revised Budget 2023, first-time homebuyers who purchase a home valued at RM500,000 and below will enjoy full stamp duty exemption until the end of 2025. Meanwhile, a 75% stamp duty exemption applies for residential properties purchased worth between RM500,000 to RM1 million until 31st December 2023.

  4. i-Rahman Housing Loan Scheme (Terengganu Only)

    Living in Terengganu? This one’s for you. The state government has set aside RM50 million yearly in interest-free loans.

    There are two loan facilities under i-Rahman. The first is for the purchase of houses from private developers called “Rumah Mampu Milik Terengganu” (RMMT). Those who want to buy an RMMT property must have rejection letters from at least two banks before applying for the i-Rahman scheme. The maximum price for a unit of RMMT is RM80,000.

    The other loan facility enables borrowers to build houses on their own land under “Rumah Mesra Rakyat Darul Iman” (RMR Rahman). The price for an RMR Rahman unit is RM75,000, but those who are eligible for this scheme will only need to repay RM55,000 over 15 years. The remaining RM20,000 will be subsidised by the Finance Ministry.

  5. Affordable Housing & Rent-to-Own

    There are also various affordable housing schemes implemented by various state governments, typically costing below RM500,000. While affordable housing projects usually cannot be compared to more expensive ones offered by private developers and may also be less popular suburban or outskirt locations, they are still great options for aspiring homebuyers who want to make that leap towards owning their first home.

    Some of the projects under these affordable housing schemes are also eligible for Rent-to-Own (RTO) financing, which allows a tenant to rent a property for a set period, after which they have the option to purchase the property at a pre-agreed price. The RTO concept usually means that you don’t have to pay a large down payment upfront and you also can try out a home before you commit to buying it!

    Some of the RTO initiatives available are Maybank HouzKEY, PR1MA and Smart Sewa (Rumah Selangorku).

    Kickstart Your Journey To Owning Your Dream Home Now

    As always, make sure to do your own research before deciding which home financing or affordable housing scheme is the right one for you. If none of the options above are suitable for you, you may also opt to withdraw from your Employees Provident Fund (EPF) savings to fund your down payment. Happy house hunting!

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