1. What is Skim Rumah Pertamaku (SRP)/My First Home Scheme?

Answer : The scheme is one of the measures announced by the Government in the 2011 Budget aimed at assisting young adults earning RM3000 per month or less to own a home. In  The scheme allows homebuyers to obtain up to 100% financing from financial institutions, enabling them to own a home.

Cagamas SRP Berhad will guarantee the banks on financing above 90% level i.e. if a borrower obtains 100% financing, Cagamas SRP will guarantee 10% ( from 90% to 100%) of the financing.

In year 2012 Scheme

Max salary of up to RM3,000 per month per individual borrower/customer and Joint application with combined gross income of up to RM 6,000 with single borrower’s gross income not exceeding RM3,000/month

2. With Cagamas SRP Berhad’s guarantee, does it mean borrowers under the Scheme are only liable to the bank for 90% financing only?

Answer :  No, the borrowers are liable to the bank for the full financing amount (up to 100%). The guarantee only indemnifies the bank for any loss incurred as a result of financing above 90% level.

3. Do I have to pay a higher interest /profit rate or any fee to enjoy up to 100% financing under the Scheme?

Answer: No, the normal interest /Profit rates of the respective banks shall apply and borrowers do not have to pay for the Cagamas SRP Berhad’s guarantee.

4. Who is eligible for this Scheme?

Answer: This scheme is open to all  Malaysian citizen aged 35 years old or less (age next birthday is 36 years old or less) with monthly income of not more than RM3000 per applicant.  And Joint application with combined gross income of up to RM 6,000 with single borrower’s gross income not exceeding RM3,000/month

5. I am self employed and my spouse works in a trading company earning RM2000 per month. Are we eligible as joint applicants under the Scheme?

Answer : No, all applicants (including joint applicants) must meet the citizenship, first home, employment, age and income criteria.

6. My spouse and I each earn RM1500  per month and we wish to obtain 100% financing purchase our first home of RM220,000. Would we qualify under the scheme?

Answer : Under the Scheme, the monthly financing repayment amount must not be more than 1/3 of borrower’s monthly combined gross income; in this case, RM1000 per month as the financing is subject to affordability.

Example of calculation:

• Gross combined income : RM1500 + RM1500= RM3000
• 1/3 of RM3000 = RM1000

Based on current interest rates and permitted maximum financing tenor of 30 years, your maximum eligible financing amount is approximately RM200,000. To obtain RM220,000. To obtain RM220,000 financing, your combined monthly income would need to be approximately RM3300.00

7. My friend and I meet all the the criteria. Can we jointly apply for financing under the Scheme?

Answer : No, joint applicants must be family members, i.e. husband and wife or siblings only, and they must all meet the criteria set.

8. Does the Scheme cover completed properties as we as those under development?

Answer : Yes the Scheme covers both completed properties and those under development? The guarantee is effective upon full disbursement of the financing.

9. My spouse and I bought a property at RM220,000. Will we be entitled to RM220,000 financing if we meet the income criteria?

Answer : Valuation of the property is subject to the bank’s underwriting policy. Generally, banks will finance based on purchase price or valuation (open market value) from their panel valuer which ever is lower.

10. My existing financing was taken up for the purchase of  my first home. Am I eligible to refinance the loan under the Scheme?

Answer : No, the Scheme does not cover refinancing of an existing financing.

11. Are the any limitations on the type of residential properties or locations under the Scheme?

Answer : The type of residential properties and locations are subject to participating banks’ underwriting policies.

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

Answer : Please contact us now and we will help you for the applications.

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

Answer : Yes, the scheme covers both conventional and Islamic financing.

14. What is the maximum financing tenor?

Answer : The maximum financing tenure is 30 years, subject to participating banks respective underwriting policies.

15. Do I need to purchase fire insurance/takaful and Mortgage Reducing Term Assurance (MRTA) / Mortgage Reducing Term Takaful (MRTT) ?

Answer : The borrower will have to purchase fire insurance/takaful. However, MRTA/MRTT requirements will depend on the requirements of the participating banks.

16. With up to 100% financing under the Scheme, does that mean I do not have to come up with any down payment?

Answer: The homebuyer would be required to pay a booking fee and/or deposit to the seller under the terms of the Sale and Purchase Agreement pending disbursement of the home financing by the bank. When financing documentation is completed, the home buyer would be reimbursed from the disbursement of the financing by  the bank. When financing documentation is completed, the home buyer would be reimbursed from the disbursement of the financing by the bank. The home buyer may try to make an arrangement with the seller for deferment of deposit payment pending disbursement by the bank. Such request is dependent on the seller’s willingness for such accommodation.

Please contact us now for 100% home loan financing

* Note: The above FREQUENTLY ASKED QUESTIONS are for illustration only. We(www.malaysiahousingloan.net) will not be liable for any losses or damages cause by it. The final approval still subject to bank’s decision and terms and conditions apply. While every care has been taken in compiling and preparing the contents herein, neither the www.malaysiahousingloan.net & nor its consultant(s) guarantees the accuracy, completeness and/or applicability of the information provided nor is the information meant to be final and binding.These terms and conditions may be revised without notice from time to time.

(Until 31st January 2012)

For loan amount RM200,000 & above.

Terms and conditions apply.

For more home loan information, please contact us now !

Please contact us  now for 100% housing loan financing!

* Note: The above criteria and information are for illustration only. We(www.malaysiahousingloan.net) will not be liable for any losses or damages cause by it. The final approval still subject to bank’s decision and terms and conditions apply. While every care has been taken in compiling and preparing the contents herein, neither the www.malaysiahousingloan.net & nor its consultant(s) guarantees the accuracy, completeness and/or applicability of the information provided nor is the information meant to be final and binding.  These terms and conditions may be revised without notice from time to time.

Under Budget 2011 our government announced many initiatives to help house ownership. These included allocation of RM568 million to build 300 units under the Urban Housing Assistance Scheme and 79,000 units under the People’s Housing Programme.

On top of that, an additional allocation of RM50 million has been set aside especially to help house ownership among estate employees under the low cost housing scheme.

After long a wait and received many emails pertaining to this subject, I am happy to announce “My First Home Scheme” was launched by our respectful Prime Minister, Datuk Seri Najib Tun Razak today.

The purpose of this programme launched was to ease the burden of our younger generation who are facing in increased of cost of living and increased in property price. Government understand and hoping with this programme our younger generation are able to own a house.

We should be thankful to government, mortgage companies, Cagamas Berhad and financial institution for giving full support in this special programme for “Rakyat”.

The brief criteria for this programme will be as follow:

1. Household income not more than RM3,000.
2. House purchase price from RM100,000 to RM220,000.
3. Maximum repayment period at 30 years tenure.
4. First time house buyer.

Under this 100% housing loan financing, Government via Cagamas Berhad will guarantee the 10% house deposit.

Government had appointed following financial institution to collaborate with the programme. Banks that involving in “ My First Home Programme” 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.

Hopefully, this scheme will help many people out there to own a house.

Stay tune for next article on housing loan financing under 100% loan financing.

Happy new year to all!

 Last few days, we received many emails and calls regarding 100% loan.

 We called some of the government bodies or department and unfortunately, this issue still remain in the dark.

We hope everyone understand our position for not able to give any advices or comments on this issue.

But, we promise to keep you all in the loop for any new updates.

 Thank you.

Auction sales are commonly perceived as opportunities to acquire properties at a bargain or under market value. Since banks are not in the real estate business, they will not want to hold the property for long and are willing to dispose of it as long as they can get their money back as quickly as possible. That is why you can find good deals in auctions sales.

Auction properties are sold on an “as is, where is” basis. Also known as “in its present condition”, auction properties are sold without any warranties as to the condition of the property nor the suitability of the property for a particular use. As such, it is important to examine and inspect the property before the bid.

We do acknowledge that auction properties sometimes can be very cheap and we are tempted to buy it. So, the question, Should we buy auction properties?

Sometimes, I received email from my viewer saying they are interested of buying an auction property. This is their first house and since the property price is cheap, so why not?

From my years of experience in doing loan, my advice will be unless you are an experience investor or you have knowledge in property and mortgage loan line or you are able to fully settle the house in cash in the event the late penalty kicks in, then you shall proceed with the purchase.

I have many stories and experiences in seeing some of the clients crying or in a deep trouble when they purchased the auction properties. So, many issues can be arise along the process of disbursement.

Unless, you did some checking on the property, the property title and developer as well. In the same time, you should also ask some legal advice from your lawyer, they know better than us.

I would like to share some of the step by step process of buying an auction property. However, this is only some brief steps.

Win your bid in cheap price with following tips:-

Step 1: Check the Property
• To conduct on-site inspection
• To check on encumbrances
• To check on the outstanding maintenance charges / rates / taxes / utilities charges and vacant possession
• To consult a valuer to get indication of the property price and compare with the reserve price

Step 2: Prepare Yourself for the Auction
• Organize your finance (include preparing document needed for loan application)
• Set on the maximum price that you are willing to bid
• Bring extra money with you during auction

Step 3: Familiar on the Auction Procedures
• Think twice and get used to auction first before put up your hand for an auction
• Talk to agents, talk to friends, talk to lawyers, talk to valuers

Step 4: Bidding Process and Procedures
• Register with the agent for Proclamation of Sale and Condition of Sale.
• Confirm with the agent that the property still under available for auction
• Be aware the property may withdraw last minute
• Register your name and prepare 10% or 5% bank draft on the reserve price

Step 5: Start Biding (The games is on)
• Be there 30 minutes earlier to get yourself ready for the battle
• Don’t influence by others people
• Be focus and be clear with your objective
• Be clear on your objective to win property that you are target for
• Be clear on your bottom line
• Listen carefully on the terms and conditions (as they might change it)
Start biding only when the property you target is on auctions. Be firm with your bottom line. Stop when the price is over the bottom line that you set earlier. Remember there are plenty of auctions or opportunities out there.

Step 6: Win or Lose the Bid

Congratulation, if you win the bid:
• You are required to sign the Memorandum at the bottom of the Proclamation of sale (or the Sales of Contract)
• Pay the balance of the 10 % or 5% if the price is higher than the reserve price

Don’t be upset, if you lose the bid:
• The streets are full of them and there are plenty of opportunities or auctions out there
• Don’t forget to claim back the 10% or 5% deposit that you have submitted

For more home loan information, please feel free to contact us

Hi Everyone,

We are receiving tremendous request to explain in details for the new ruling  “3^rd House Financing Facility With Maximum Loan to Value 70%”  .We would like to clear the air with the chaos in the housing loan sector. Here, we provide simple example for this new ruling.

These simple conditions apply:

1)     Banks will refer to CCRIS report.

What is CCRIS?

CCRIS is a Bank Negara Malaysia (BNM) sponsored system that supports the functions of the Credit Bureau (CB)

What is CREDIT BUREAU (CB)?

Credit Bureau is a unit established by BNM to collect credit information on borrowers from financial institutions and supplies the information back to financial institutions.

The Credit Bureau does not collect any information on deposits or the investment portfolio of any individual or corporation.

2)     Bank will only refer to existing home loan or payslip (for government staff). Bank will not base on Sales and Purchase agreement or ownership of the property.

Example 1 :

Mr A has 3 existing home loan with few banks.

Ms B has only 1 existing home loan with bank.

Now, Mr A would like to purchase a new house with Ms B. Sales and Purchase agreement under Mr. A and Ms B.

Scenario 1:

With an assumption, the new home loan under Mr. A name. The home loan entitlement will be up to margin 70% only. Because, this is Mr A’s 4^th home loan.

Scenario 2:

With an assumption, new home loan under Ms B name only. The home loan entitlement will be up to margin 90%. Because, this is Ms B’s 2^nd home loan.

Scenario 3 :

With an assumption, new home loan under Mr A and Ms B name. The home loan entitlement will be up to margin 70%. Because, this is Mr A’s 4^th home loan.

Example 2:

Mr A has 2 existing home loans with bank. Recently, he sold one of the houses, Sales and Purchase agreement signed. CCRIS still appear this home loan.

Today, Mr A purchased a new house.

If he applied a home loan for the new house, what is the entitlement?

Answer: Up to 70%.  Because, it is consider 3^rd home loan. His existing home loan still appears in CCRIS report.

If the home loan no longer appears in CCRIS, then his entitlement for home loan will be 90%.

Example 3:

Mr. A don’t have any property under his name. Basically, he didn’t own any house. But, he has 2 home loans co-joining with his sister and brother. He joined as a co-borrower because both of his brother and sister do not have sufficient income at that moment.

Now, he interested to purchase first house under his name and apply a home loan. What is his entitlement?

Answer :  Up to 70%. Since, the new home loan will be 3^rd home loan.

Example 4:

Mr A has 10 houses around Malaysia. All houses are fully paid or buying with cash. Now, he is purchasing a new house and would like to apply for a home loan. What is his entitlement?

Answer: Up to 90%.

For more home loan information, please free to contact us

Thank you.

Nevertheless, these rumours had been spreading in the market for a while. But, we were still in shock with this news. We believe, this decision will affect so many parties. The most obvious one will be property market players such as developer, property agents and banking industry as well.

Previously, developer had been offer attractive rebate and discount up to 10% to attract more buyers to own a house. With zero down payment and loan up to 90%, many buyers own a house without paying a single cent. But, now the table has turned. Are developers able to offer 30% rebates for a house to attract these “3^rd house buyer”? This will take a lot of courage to anticipate it.

We do understand Bank Negara is trying to cool down the property market in Malaysia. But, I can’t help feeling sad over this decision. It shaded my dream to own a dream homes. Or in another way to see it, it will take longer time to own one. I will definitely mourning for this decision for a well.

I’m glad this decision not affecting first and second house buyer. Individual that fall under this category will still able to apply loan up to 90%.  Congratulation to you guys!

However, this news comes by surprise and we yet to receive any black and white from the banks. We understand, you have so many dilemmas and questions to ask regarding this issue. But, please be patient with us.

We promise to update you the recent news once we received it.

For more details on the new ruling, please refer to Bank Negara Article “Measures in Promoting a Stable and Sustainable Property Market and Sound Financial and Debt Management of Households” dated 3^rd November 2010.

Feel free to leave a comment about this new ruling by Bank Negara, I would like to hear from my viewers.

Take care.

At the national level, residential property prices have increased steadily in tandem with economic development and the rise in income levels.  This aggregate growth trend remains largely manageable and has not deviated from the long term trend in residential property prices.  In the more recent period, however, specific locations, particularly in and around urban centres, have experienced faster growth, both in the number of transactions and in house prices. This is further supported by an increase in financing provided for multiple unit purchases by a single borrower, suggesting increasing investment activity that is of a speculative nature.

The targeted implementation of the LTV ratio is expected to moderate the excessive investment and speculative activity in the residential property market which has resulted in higher than average price increases in such locations. This has also led to increases in house prices in surrounding locations, thus contributing to the declining overall affordability of homes for genuine house buyers.  This measure therefore remains supportive of the objective of encouraging home ownership among Malaysians which continues to be an important national agenda. 

Introduction of the Financial Capability Programme

As part of the continuous efforts to raise the level of financial literacy and to promote  sound financial and debt management by Malaysians, Bank Negara Malaysia also wishes to announce the introduction of the Financial Capability Programme. This Programme will be offered by Agensi Kaunseling dan Pengurusan Kredit (AKPK) through its establishments nationwide and will commence from January 2011. The Programme is aimed at equipping individuals with important knowledge for responsible financial decisions by gaining practical understanding and skills in money and debt management. This in turn will contribute towards preserving the sound financial positions of households and ensure that debt accumulation is commensurate with household affordability, including their ability to absorb interest rate adjustments and potential volatility to income and expense levels. Individuals particularly new prospective borrowers and young adults are strongly encouraged to participate in this specially designed programme. The details of the implementation of the Financial Capability Programme will be announced later in December this year.

Bank Negara Malaysia
3rd November 2010

        Note : 

• Lawyer Professional fees to be included 6% of government tax.
• Disbursement  Fees to be in the range of RM1000- RM1500.00 ( based on estimation)