First Home Scheme was being introduced by the Government in Budget 2011 as below to encourage home ownership among Malaysians:
- Specially cater for first-time house buyers with monthly household income below RM3,000.
- 100% loan for houses priced below RM220,000.
- 50% stamp duty exemptions on instruments of transfer on houses below RM350,000.
- 50% stamp duty exemptions on loan agreement instruments on houses below RM350,000.
To facilitate the 100% loan, Cagamas Bhd (national mortgage corporation) will provide guarantee on the 10% down-payment to eligible house buyers.
Signals sent-out by Government:
1. Enabling first-time buyers to afford their first home.
2. Developers should build more houses which is affordable for such categories.
Advise to first-time house buyers:
1. The securing of such a loan is still subject to how much the banker willing to lend you.
2. 100% loan means higher monthly repayment for borrower.
3. Always buy within your means, not because of such scheme.
How about the buzzing higher down-payment ratio?
Although Government does not raising the down-payment to 20% or 30%, I believe it will announce later. The interesting part is always follows later.