Skim Rumah Pertamaku - Frequently Asked Questions
A. Skim Rumah Pertamaku
1. What is Skim Rumah Pertamaku (the Scheme)?
The Scheme is one of the measures recently announced by the Government in the 2011 Budget aimed at assisting young adults earning RM3,000 per month or less to own a home. The Scheme allows homebuyers to obtain up to 100% financing from participating banks, enabling them to own a home.
Cagamas SRP Berhad will guarantee the participating banks on financing above 90% level i.e. if a borrower obtains 100% financing, Cagamas SRP will guarantee 10% (from 90% to 100%) of the financing.
2. With Cagamas SRP Berhad’s guarantee, does it mean borrowers under the Scheme are only liable to the bank for 90% financing only?
No. The borrowers are liable to the participating bank for the full financing amount (up to 100%). The guarantee only indemnifies the participating bank for any loss incurred as a result of financing above 90% level.
3. Do I have to pay a higher interest/profit rate or any fee to enjoy up to 100% financing under the Scheme?
No. The normal interest/profit rates of the respective participating banks shall apply and borrowers do not have to pay for the Cagamas SRP Berhad’s guarantee.
1. Who is eligible for this Scheme?
This Scheme is open to all Malaysian citizens aged 35 years old or less (age at next birthday is 36 years old or less) with monthly income of not more than RM3,000 per applicant.
2. I am self-employed and my average monthly income is RM2,000. Am I eligible for the Scheme?
No. The Scheme is limited to employees in the private sector only. Applicants must be confirmed employees with a minimum employment period of 6 months with the same employer.
3. I am self-employed and my spouse works in a trading company earning RM2,000 per month. Are we eligible as joint applicants under the Scheme?
No. All applicants (including joint applicants) must be employees in the private sector only and must also meet all other eligibility criteria.
4. My spouse and I each earn RM1,500 per month and we wish to obtain 100% financing to purchase our first home of RM220,000. Would we qualify under the Scheme?
Yes. You may obtain 100% financing under the Scheme, provided that the monthly financing repayment amount must not be more than 1/3 of the borrower’s monthly combined gross income; in this case, RM 1,000 per month, as the financing is subject to affordability.
Example of calculation:
* Gross combined income : RM 1,500 + RM 1,500 = RM 3,000
1/3 of RM 3,000 = RM 1,000
Based on current interest rates and permitted maximum financing tenor of 30 years, your maximum eligible financing amount is approximately RM200,000. To obtain RM220,000 financing, your combined monthly income would need to be approximately RM3,300.
5. My friend and I meet all the criteria. Can we jointly apply for financing under the Scheme?
No. Joint applicants must be family members, i.e. husband and wife or siblings only, and they must all meet the criteria set.
1. Does the Scheme cover completed properties as well as those under development?
Yes. The Scheme covers both completed properties and those under development. The guarantee is effective upon full disbursement of the financing.
2. My spouse and I would like to buy a property which costs RM220,000. Will we be entitled to RM220,000 financing if we meet the income criteria?
Generally, participating banks will provide financing based on the purchase price or valuation (open market value) from their panel valuer whichever is lower. Valuation of the property is subject to the participating bank’s underwriting policy.
3. My existing financing was taken up for the purchase of my first home. Am I eligible to refinance the loan under the Scheme?
No. The Scheme does not cover refinancing of an existing financing.
4. Are there any limitations on the type of residential properties or locations under the Scheme?
The type of residential properties and locations are subject to participating banks' underwriting policies.
D. Other Questions
1. How do I apply for financing under the Scheme?
Application can be made at any branch of the participating banks.
2. Can I apply for Islamic financing under the Scheme?
Yes. The Scheme covers both conventional and Islamic financing.
3. What is the maximum financing tenor?
The maximum financing tenor is 30 years, subject to participating banks' respective underwriting policies.
4. Do I need to purchase fire insurance/takaful and Mortgage Reducing Term Assurance (MRTA) / Mortgage Reducing Term Takaful (MRTT)?
The borrower will have to purchase fire insurance/takaful. However, MRTA / MRTT requirements will depend on the requirements of the participating banks.