Malaysia Budget 2013: My First Home Scheme – Skim Rumah Pertamaku (SRP)

Skim Rumah Pertamaku (SRP) – My First Home Scheme was first announced in the 2011 Budget by the Malaysian Government to assist young adults who have just joined the workforce, earning RM3,000 per month or less to own  their first home.

The Scheme allows young adults to obtain 100% financing from financial institutions, enabling them to own their 1^st home without the need to pay a 10% downpayment. This is in line with the Government’s aspirations of increasing home ownership amongst the “rakyat”.

Key Features and Benefits – First Home purchase  (Subject to affordability)

• Up to 100%  financing
• Residential property only

Qualifying Criteria

Eligible Borrowers:

• Malaysian citizen
• First time home-buyer
• Individuals up to age 35 years
• Single borrower gross income not exceeding RM3,000/month and joint borrowers gross income not exceeding RM6,000/month (gross maximum income of RM3,000/month per borrower)
• Budget 2013: 50% stamp duty exemption on sale and purchase agreements and loan agreements for purchase of the first residential property of up to RM400,000 (increased from RM350,000), be extended to 31 Dec 2014.

• Individual borrower's gross income is not more than RM5, 000 per month in gross income borrowers together not more than RM10, 000 per month (based on the maximum monthly gross income of not more than RM5, 000 per borrower)

  Repayment of financing commitment amount shall not exceed 60% of monthly net income or a maximum funding limit banks involved, whichever is lower

Eligible Properties:

• Residential properties located in Malaysia
• Minimum property value of RM100,000
• Maximum property value of RM400,000
• Owner occupied  (buyers are required to reside in the property)

Financing Requirements:

• Financing tenure not exceeding 40 years, subject to borrower’s age not exceeding 65 years at the end of financing tenure
• Amortising facility only (no redrawable features)
• Installments payable via monthly salary deduction or standing instruction
• Savings record (3 months installment liquidity reserve)
• Compulsory Fire insurance/takaful

Sources:

1. http://www.srp.com.my/index.html  (Skim Rumah Pertamaku)

2. http://www.bnm.gov.my/files/2012/bs13.pdf  (Malaysia Budget 2013 report download)

For first time home buyer who are willing to learn more on how they can identify good property deal and

buy at the cheaper price, kindly visit http://propertyoutlookconference.com/ or visit official company: http://wealthmasteryacademy.com/