Buying a home can be one of the most stressful events in one’s life – especially if it is your first time. Where should you start? Can you afford your dream home? What about all the legalities and the hidden costs everyone talks about?<\/p>\n\n\n\n

Yes, it is a highly stressful time. We understand and are here to help with these 10 most asked questions<\/strong> by our readers and fans. As you scroll through hundreds of property listings, these questions will likely run through your mind.<\/p>\n\n\n\n

10 First Home Buying Questions <\/h2>
1. How would I be eligible for a housing loan?<\/a><\/li>
2. Should I refinance my home?<\/a><\/li>
3. How do I save up for the down payment?<\/a><\/li>
4. How can I get a 100% housing loan?<\/a><\/li>
5. How do I value my house?<\/a><\/li>
6. Can I get cash from my home?<\/a><\/li>
7. Why would the bank reject my housing loan application?<\/a><\/li>
8. How do I safeguard myself if the OPR increases?<\/a><\/li>
9. Should I get a mortgage life insurance?<\/a><\/li>
10. Should I get a basic term home loan or a flexi home loan?<\/a><\/li><\/ul><\/div>\n\n\n\n
1. How would I be eligible for a housing loan?<\/h2>\n\n\n\n
Housing loan eligibility depends<\/strong> heavily on your monthly income<\/strong> and existing loan commitments<\/strong>. These can be personal loans, the dreaded but inseparable credit cards, or other bank loans, including softer ones like ASB.<\/p>\n\n\n\n
The banks will check your CCRIS<\/a> report<\/strong> to see<\/span> all your active loans and payment status. Thus, it is crucial to ensure all your loans and credit cards are up to date. Then, the banks will decide how much you are eligible for and your risk as a borrower.<\/p>\n\n\n\n
To find out how much you need to pay based on the price of a home, you may use this home loan calculator<\/strong><\/a> by iMoney Malaysia.<\/p>\n\n\n\n
2. Should I refinance my home?<\/h2>\n\n\n\nMany homeowners do just that to earn extra cash<\/strong>—though it is very normal and you may have friends, relatives, and neighbours doing it<\/span>, don’t do it for the wrong reason<\/a><\/strong>!<\/p>\n\n\n\n
Here are 3 things you need to know about refinancing your property<\/a>, according to HSBC Malaysia:<\/p>\n\n\n\n
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You use<\/span> your property’<\/strong>s rising value to obtain a larger financing amount<\/strong>.<\/li>\n\n\n\n
Your refinanced loan pays off<\/strong> your current housing loan<\/strong>.<\/li>\n\n\n\n
You are free to use<\/strong> the balance as you wish.<\/li>\n<\/ul>\n\n\n\n
However, only do it if there is a valid reason why you need the money.<\/p>\n\n\n\n
3. How do I save up for the down payment?<\/h2>\n\n\n\n
This depends entirely on yourself. Down payments usually make up 10% of the asking price, depending on your margin of finance (the total loan amount you are eligible for).<\/p>\n\n\n\n
Remember, this 10% can be withdrawn from Account 2<\/strong><\/a><\/span> of your Employee Provident Fund (EPF)! With EPF’s introduction of Account 3, you can also consider withdrawing from Account 3 to help with any costs incurred<\/strong> during the home buying.<\/p>\n\n\n\n
4. How can I get a 100% housing loan?<\/h2>\n\n\n\n
If you are unable to save up 10% of the down payment, you can still consider buying a home through various government subsidised schemes, such as:<\/p>\n\n\n\n
My First Home Scheme<\/mark><\/strong><\/a> or Skim Rumah Pertamaku (SRP) – If your monthly income is RM5,000 and below, you can get<\/strong><\/span> 100% financing<\/strong> for a residential property.<\/p>\n\n\n\n
In Budget 2025<\/a>, the government also clarified that it is committed to providing more avenues for first-time house buyers through<\/span> further initiatives and programmes.<\/p>\n\n\n\n
However, it’s also important to note that you can pay the down payment using money from your EPF Account 2, which allows for withdrawal for homebuying purposes.<\/p>\n\n\n\n
For this reason, it is imperative that you do your own research and find the best home loan rates in Malaysia<\/strong><\/a>.<\/p>\n\n\n\n
5. How do I value my house?<\/h2>\n\n\n\n
For sub-sale (a pre-owned home), you need to do a house valuation<\/strong> to determine the property’s market value.<\/p>\n\n\n\n
Former owners may set a price according to the market, but it is always good to have second, third, or as many opinions as possible. (Careful, though; too many will confuse you, so stick to reliable sources.) You can also check the classified sections on online and offline media or talk to a few property agents to get an idea.<\/p>\n\n\n\n
Banks usually do valuations to gauge the loan amount to offer, but you can also do them yourself to determine if the selling price is according to the market value. However, only get the valuation done by an accredited agency for better accuracy<\/strong>. Keep in mind that sometimes, your valuation price may not be accurate at all.<\/p>\n\n\n\n
6. Can I get cash from my home?<\/h2>\n\n\n\n
Your home is your asset<\/strong>, and its value will likely go up. However, how good is the home if you can’t get cash out of it when needed?<\/p>\n\n\n\n
Be it for your child’s college education or to purchase your second property, consider these few ways to free up your home equity<\/a><\/span> or refinance your home<\/a>.<\/p>\n\n\n\n
7. Why would the bank reject my housing loan application?<\/h2>\n\n\n\n
There are various factors banks look into when approving a housing loan application. The factors range from the property’s location<\/strong>, borrower’s income<\/strong>, lack of a credit facilities record<\/strong> (it pays to have a credit card that you pay punctually), bad CCRIS reports<\/strong>, or the debt service ratio<\/strong> (DSR) may be over the maximum limit. Therefore, it is essential to keep a clear record<\/strong> by making your existing loan payments on time.<\/p>\n\n\n\n
8. How do I safeguard myself if the OPR increases?<\/h2>\n\n\n\nMost property loans available in Malaysia are based on the Overnight Policy Rate (OPR), which is currently set at 3%. You can read more about OPR<\/a> and how it affects your loan<\/span>.<\/p>\n\n\n\n
To safeguard oneself from the volatility of OPR, one can consider a fixed rate home loan<\/a><\/strong>.<\/p>\n\n\n\n
9. Should I get a mortgage life insurance?<\/h2>\n\n\n\n
As the household’s primary breadwinner, buying a home for your dependents is just half of the battle. You must ensure that your loved ones are protected as well, in the event you can no longer pay the mortgage of your house.<\/p>\n\n\n\n
This is where mortgage life insurance comes into the picture. You can either get a Mortgage Reducing Term Assurance (MRTA) or a Mortgage Level Term Assurance (MLTA) to safeguard your home<\/strong> in the event of death or total permanent disability (TPD). Find out which one suits your needs in our MRTA versus MLTA comparison<\/a>.<\/p>\n\n\n\n
10. Should I get a basic term home loan or a flexi home loan?<\/h2>\n\n\n\n
The difference between a conventional home loan and a flexi one lies in how much you can pay monthly. Going for a basic term loan<\/strong> makes more sense if you are a fixed salary worker<\/strong>, as you pay a set monthly amount for the entire tenure. The drawback is that you won’t be able to save on interest charges if you decide to pay a lump sum or more every month.<\/p>\n\n\n\n
Unlike flexi loan<\/strong>, you can make an advance payment<\/strong> to lower your loan interest<\/strong> and withdraw the additional costs you’ve made whenever you like, without complicated procedures. However, usually flexi loans come with a fixed monthly fee (usually RM10 per month) to maintain the current account.<\/p>\n\n\n\n
Compare the basic term, semi-flexi, and full-flexi home loans to determine the type of loan that is suitable for your income<\/a><\/span>.<\/p>\n\n\n\n
As a first-time home buyer, you will have many questions about buying your first home, but these 10 are likely to pop into your head first. With these answered, you should have more confidence in getting your first home.<\/p>\n\n\n\n
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This article is a joint effort by iMoney<\/a>, a leading provider of mortgage loan solutions, and IQI Global.<\/p>\n\n\n\n
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Interested in purchasing your very first dream home? Here at IQI, we provide services in purchasing the perfect home, with the right budget. Please leave your details below, and our professional team will assist you.<\/strong> <\/span><\/p>\n\n\n\n
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3. How do I save up for the down payment?<\/h2>\n\n\n\nThis depends entirely on yourself. Down payments usually make up 10% of the asking price, depending on your margin of finance (the total loan amount you are eligible for).<\/p>\n\n\n\n