How You Can Get 100% Home Loan Financing

During the webinar I hosted with Evanna Phoon, featuring Mr. Ching Chee Pun who is a financing expert and chartered accountant, Ching shared about the scheme which allows Malaysians to get 100% financing for their first home purchase. This is what he told us during the session:

This one is very interesting for those who want to buy their first house, especially young adults.
This scheme was launched in 2012 by the government to assist in loans. What it means is that, “My First Home Scheme” helps those who are buying their first house to get a 100% loan from banks. However, when the government first launched this project in 2012, many banks did not support it.

Why? The reason is very simple:
In 2012, the old version of this scheme is limited to those who have an income of RM3,000 or less. If your salary or income is less than RM3,000 a month, then you are eligible to apply for this scheme. If you are earning RM3100, you do not qualify. Even if you are only off by RM1, you’re out.

Why is that? That’s very simple. Let’s say you’re earning RM3,000 a month and you want to buy a house worth RM200,000 or RM300,000, the banks will think that you cannot afford to pay back the money, so they refuse to loan you 100% even if you qualify for the scheme.

The assumed inability to pay is why the banks don’t want to support the scheme. Look at it this way, say you have RM3,000. After you minus all other expenses, you would not have enough to pay the monthly installments to the bank.

In 2013, the government had increased the limit to RM5,000. Now, if you are an employee or even a businessman who earns RM4,000 to RM5,000 per month, you can join the scheme and buy your first home because you can qualify for the 100% loan from banks.

Another point here is if it’s joint application, for example husband and wife has a total monthly income of RM10,000 or RM5,000 each, you can still make use of the scheme. This means a lot especially for the first time buyers because you can qualify for this scheme and you can buy a house worth up to RM400,000.

For Premium Webinar Members, you can watch the full replay of Ching Chee Pun’s session here: