Imagine if our headline read: “With a salary of RM2,500, you can own your own home!”
Surprisingly, it’s not an impossibility, and according to the experts at iMoney, you can budget it on your own or apply for subsidised or affordable housing schemes. But of course, buying your own property is a huge leap and a long-term commitment. The last thing you need is to be in over your head and get right into debt. If you can’t service your mortgage, you get a bad credit rating and it will lead to foreclosure on your property. So, you need to be super-savvy about your property choice, loans and budgeting.
Here in Malaysia, we have some helpful schemes that will aid you in owning your first home:
- PR1MA: Open to all Malaysians aged 21 and above, with a monthly household income between RM2,500 to RM7,500. It also comes with a rent-to-own (RTO) scheme and a step-up financing option.
- Maybank Houzkey: Maybank Islamic Bhd is the first bank to launch a rent-to-own housing shceme, HouzKEY, for medium range properties.
- Rumah Selangorku Programme: For those living in Selangor, you can check this out. Reputable developers such as IJM Land and Sime Darby have taken part, and this is supposed to be a people-eccentric initiative by the Lembaga Perumahan dan Hartanah Selangor (LPHS) offering affordable schemes.
- MyDeposit Scheme: This is a government scheme for lower and middle-income earners (with a household income of RM10,000 and below) to help them pay their down payment of up to RM30,000.
These are the main pointers and ways that iMoney have guided us — we’re sure they’ll be helpful for you to take the plunge:
BUDGET AND DEPOSITING
For your first and second property, the banks will usually allow up to a 90% margin of finance (i.e. you pay 10% as a down payment and get a 90% loan). To know if something is
within your budget, check how much cash you have on hand for the down payment and also other miscellaneous costs (stamp duty, legal fees, etc), which can amount to another 10% of the property price. To be really savvy, typically, you shouldn’t borrow (car + house loans) more than 60% to 70% of your total income. Want to save some stress? Talk to a mortgage officer to compare rates between banks.