Traders Fair

20 September 2019

Initiatives to Assist Home Buyers (Sept 2019)

Malaysian house prices continued to increase at a more moderate pace, especially in Kuala Lumpur, Selangor, Johor and Penang. House price growth was supported mainly by sustained demand for more affordable properties, while activity in the higher priced condominiums and apartments remained weak.

Some signs of market recovery were observed in the first quarter of 2019 as housing transactions both in terms of volume and value recorded sharp increases.

Housing transactions were largely driven by houses priced below RM300,000, reflecting continued demand for affordable housing across most states. Demand for housing was also boosted by various public and private sector initiatives to lower housing costs (as below).

Initiatives to Assist Home Buyers:

Targeted to First Time home buyers

  • Stamp Duty Exemption
    ~ Stamp duty exemption on memorandum of transfer and loan agreement for the first RM300,000.
    ~ Applicable for properties priced up to RM500,000 (primary and secondary market).
    ~ The exemption is valid for a period of two years until December 2020.

  • ~ Eligible first-time home buyers with monthly household income of up to RM4,360 will be able to access home financing at a concessionary financing rate of up to 3.5% per annum to purchase houses priced up to RM300,000.

  • Mortgage Guarantees
    Higher margin of financing supported by guarantees from Cagamas Berhad and Syarikat Jaminan Kredit Perumahan Berhad under various schemes:
    • Skim Rumah Pertamaku: For purchase of a first house priced up to RM300,000 (single borrower) and RM500,000 (joint borrower).
    • Skim Perumahan Belia: For purchase of a first house priced up to RM500,000.
    • Skim Jaminan Kredit Perumahan: For purchase of a first house priced up to RM300,000

Targeted to All buyers 

  • Home Ownership Campaign (HOC)
    ~ Stamp duty exemption on memorandum of transfer for residential properties priced up to RM1 million and for loan agreement of up to RM2.5 million.
    ~ Price discounts (minimum of 10%) from developers (for properties priced above RM300,000).
    ~ Campaign extended until December 2019 following strong interest from home buyers.

  • Advisory Assistance
    ~ Khidmat Nasihat Pembiayaan (MyKNP) has been established to assist applicants who have been unsuccessful in securing home financing to have greater understanding of the factors affecting their financing application, as well as to provide advice to help raise their eligibility for future financing.
    ~ MyKNP is a joint collaboration between the Bank, Credit Guarantee Corporation Malaysia Berhad (CGC) and AKPK.
    ~ RUMAHKU Financial Education programme by AKPK to help potential borrowers understand their financial commitments prior to purchasing a home.

Source: Bank Negara Malaysia, Cagamas Berhad, AKPK, CGC, Ministry of Finance and news flows

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