Buying your first home in Malaysia requires careful financial planning, property research, and proper legal preparation.
Start by reviewing your credit health and assessing how much you can comfortably afford.
As a general guide, prepare around 10% of the property price for a down payment, plus an additional 3% to 5% to cover costs such as legal fees, stamp duty, and valuation.
You can compare available properties through online property listing platforms, then obtain home-loan approval, sign the necessary agreements, and complete the legal transfer before taking possession of the home.
Financial Preparation and Budgeting
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Check your credit health:
Review your CCRIS and CTOS reports to ensure that your credit records are accurate and that there are no outstanding issues that could affect your loan application.
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Calculate your Debt Service Ratio (DSR):
Assess your existing monthly debt commitments against your income. Banks use DSR as one of the factors when evaluating whether you can afford a home loan.
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Build sufficient savings:
Aim to have approximately 10% of the purchase price for the down payment, while also setting aside additional funds for legal fees, stamp duty, valuation fees, and other transaction costs.
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Consider using EPF savings:
Eligible first-time buyers may be able to use savings from their EPF Account 2 to help finance certain costs associated with purchasing a home, subject to applicable withdrawal requirements.
If you’re looking for a first home scheme, you’ve come to the right place. Here are five options to consider when deciding to buy your first home.
| 5 First-Home Schemes in Malaysia |
1. BSN Youth Housing Scheme
The BSN Youth Housing scheme provides up to 100% financing for property purchases, with a repayment period extending up to 35 years.
Eligible applicants are Malaysian citizens aged between 21 to 45 years, with a combined monthly income not exceeding RM10,000.
Click here to learn more: BSN MyHome official website
2. PR1MA
The PR1MA initiative is designed to support middle-income earners in Malaysia. It offers a range of affordable housing options priced between RM100,000 to RM400,000.
Applicants must be Malaysian citizens aged 21 and above to qualify. Applicants must be earning a monthly household income ranging from RM2,500 to RM15,000.
Click here to learn more: PR1MA official website
3. RUMAWIP
Spearheaded by the Federal Territories Ministry, RUMAWIP aims to provide affordable housing solutions to the middle-income group residing in Kuala Lumpur.
The scheme features various housing types within the price bracket of RM150,000 to RM300,000. It is open to Malaysian citizens aged 21 and above, born, living or working in Kuala Lumpur.
Click here to learn more: Residensi WIP official website
4. Rumah Selangorku
This initiative by the Selangor State Government is dedicated to offering affordable homes to the residents of Selangor. These home prices range from RM42,000 to RM250,000.
Eligibility extends to Malaysian citizens aged 18 and above earning a monthly household income between RM3,000 and RM10,000.
Click here to learn more: Rumah Selangorku official website
5. Bank Negara My First Home Scheme
This scheme provides up to 110% financing for property purchases, specifically designed to assist first-time homebuyers. It has a maximum tenure of 35 years.
Malaysian citizens aged 25 and above, earning a monthly household income less than RM2,300 are eligible to apply.
Click here to learn more: Bank Negara Malaysia official statement
With these comprehensive housing schemes and initiatives, it’s now easier to own a home in Malaysia.
Whether you are a young married couple, a middle-income earner, or a first-time homebuyer, there are many options tailored to assist you in achieving your homeownership dreams.
Finding and Securing the Right Property
- Set a realistic price range: Establish a budget based on your income, existing financial commitments, savings, and expected loan repayment. For eligible first-time buyers, properties priced at RM500,000 or below may qualify for applicable stamp-duty exemptions, subject to prevailing government conditions and eligibility requirements.
- Compare property listings: Use online property portals to compare prices, locations, property types, facilities, and other features before deciding on a property.
- Pay the booking or earnest deposit: Once your offer is accepted, you may be required to pay a booking or earnest deposit, commonly around 2%, depending on the transaction and the terms agreed with the seller.
Home Loan and Legal Completion
- Apply for a home loan: Submit the required documents, which may include payslips, bank statements, proof of income, tax documents, and other financial information. Comparing offers from several banks can help you identify a suitable loan package and interest rate.
- Sign the necessary agreements: Once the loan and purchase are approved, you will generally sign the Sale and Purchase Agreement (SPA) and the relevant loan documentation with the assistance of a lawyer.
- Complete the legal transfer: Your lawyer will handle the necessary legal and registration processes, including payment of applicable fees and duties and the transfer of ownership.
- Complete the handover and collect the keys: Once the required payments, registration, and completion procedures have been finalised, you can take possession of the property. Inspect the home during handover and document any defects that need to be addressed.
Overall, the home-buying process can be viewed as four key stages: prepare your finances, find and secure a suitable property, obtain financing, and complete the legal transfer and handover. Planning each stage carefully can help you avoid unexpected costs and make a more informed first-home purchase.
Ready to Find Out How Much Home You Can Afford?
Share your estimated budget or target property price and monthly household income with an IQI Global property agent. Get personalised guidance on your potential monthly loan repayment, available grants or exemptions, suitable properties, and the next steps towards buying your first home.
