First time home buyer malaysia benefits privileges entitlements
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First house purchase may be a daunting and intimidating task for most, if not all of us. As a greenhorn, we may not be familiar with the processes and procedures as well as the entitlements, privileges and benefits that are available to us.

We hope that this article will enlighten first-time home buyers about of the entitlements, privileges and benefits made available to them and hopefully, enable them to make informed decision in their first home purchases.



A. Stamp Duty Remission

1. Following the announcement of Budget 2017 on 21 October 2016 by our Prime Minister, a full waiver (100%) of stamp duty for first-time home buyers has been effected through the Stamp Duty (Remission) Order 2016 and Stamp Duty (Remission) (No. 2) Order 2016 (“Orders”).

2. However, the full exemption is limited to residential properties valued up to RM300,000.00 and is only applicable for purchases made during the period of January 2017 to December 2018.

3. The remission is as follows:

4. In order to be entitled for this stamp duty remission, the Sale and Purchase Agreement (SPA) for the purchase of the first residential property must be executed on or after 1 January 2017 but not after 31 December 2018.

5. If you own any residential property which is obtained by way of inheritance or gift, either individually or jointly held, you are not qualified for this remission.



B. My First Home Scheme (Skim Rumah Pertamaku)

1. Skim Rumah Pertamaku (SRP) was announced in Budget 2011 Malaysia for first-time home buyers to apply for 100% financing from participating banks.

2. Under this scheme, you must be a first-time home buyer, aged 40 years old or below, and your monthly gross income should not exceed RM5,000. If you are married, the joint monthly household income of you and your spouse, should not exceed RM10,000 (gross maximum income of RM5,000 per month, per applicant).

3. Only property valued between RM100,000 to RM400,000 are eligible for this scheme, and the purpose of the purchase must be for your own occupation.

4. The list of banks are stated in http://www.srp.com.my/en/contact.html, while other qualifying criteria for this scheme is stated here - http://www.srp.com.my/en/criteria.html.

Read more about government housing programs here.



C. MyDeposit Scheme

1. The scheme offers assistance for you to pay the deposit for your purchase, with the deposit amount ranging from RM3,000 to RM30,000 or ten percent (10%) of the purchase price (whichever is lower)

2. The scheme is available for residential properties with prices not exceeding RM500,000.

3. If you are 21 years old and above with a monthly gross income of RM3,000 to RM10,000, you may apply. The application approval process will take about two (2) months or more. If you are eligible, you will be given conditional approval to sign the Sale and Purchase Agreement (SPA) within thirty (30) days.

4. The restriction imposed under this scheme is that the property purchased cannot be sold by you within 10 years after the purchase.

5. As of writing, the official website for National Housing Department (https://sprn.kpkt.gov.my/portal/content/mydeposit-write.html) states that the application for MyDeposit scheme was closed on 30 June 2016 and the scheme application for 2017 has not commenced.



D. MyHome Scheme

This scheme provides Malaysian citizens (ages 18 years and above) the opportunity to purchase their first home under the projects approved by the National Housing Department. Further details can be obtained here



E. Bank Loan with 90% Margin of Financing

1. Generally, banks may offer up to ninety percent (90%) margin of financing for your first and second home, though subject to your financing eligibility.

2. As a first-time homebuyer, you may only need to pay ten percent (10%) of the purchase price as deposit. If you are employed, you may consider withdrawing from Account 2 of your Employees Provident Fund (EPF) to pay the deposit.

3. Nonetheless, certain rules and conditions will govern your EPF withdrawal, where such withdrawal may only be made after your bank loan has been approved and the Sales and Purchase Agreement (SPA) has been signed by you and the seller. These documents must also be stamped. Further information can be obtained from the EPF withdrawal form.




Article Contributed By:

© Messrs Chua, Tan & Partners
Author: Jansen Chua Soong Kiat

This publication is issued for the information of the clients of the Firm and covers legal issues in a general way. The contents are not intended to constitute advice on any specific matter and should not be relied upon as a substitute for detailed legal advice on specific matters or transactions.


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Very informative piece of sharing, especially for low income earners and young home buyers.

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Thanks for good information sharing

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@admin_ps thanks for sharing