MYHOME NDIS PLANNING GUIDE

Tips on financial planning before buying your first property

11/21/2018

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Buying a home on your own is a huge commitment and one of the biggest milestones you achieve in life for most Malaysians. With the rising housing price in Malaysia, purchasing a house in Malaysia can be a financial burden. Fret not, there are many schemes available to help you to buy a house such as Rumah Pertamaku, RUMAWIP, pr1ma and so on. This article will also guide you through some tips on financial planning before you buy your first property.

How much can you afford? First of all, you will need to know exactly how much you can afford before you start searching for a house.

Financial institutions will also look into your debt service ratio (DSR) before they decide on the loan amount that you are eligible to loan. The DSR is an indicator of your income that has been spent on debt repayments, such as personal loan, auto loan or home loan. They will then based on the remaining income available to determine how much you are able to afford for the bank loan that you applied to. Your DSR along with the repayments of the loan you apply should not be more than 60% if you want to be eligible for the loan.

2. Upfront payment
Most properties would require the buyers to pay a 10% down payment for the property so the buyer will need to get a 90% loan from the bank to afford buying a house. Let us say you are buying a RM500,000 property, you will then need to prepare at least RM50,000 for the down payment in cash. Other than the 10% down payment, there are also some miscellaneous fees that you will need to pay upfront.

3. How to increase your eligibility?
The simplest way to increase your eligibility to afford a house is to have your income increased. As your salary increases, your DSR will automatically reduce and you will naturally increase your chances of securing a bank loan. It is understandable that most people will think getting a raise or promotion is not easy, hence unable to afford a property due to insufficient earning.

Other than planning your budget early, you could also manage your debts by reducing them to increase your eligibility in securing a bank loan. Clear off your debts as fast as you can or go opt for a debt consolidation plan by consolidating your credit card loans and personal loan into a single personal loan with low interest in order to increase your eligibility. In addition, try not to apply for more credit cards so your DSR will not be affected when it comes to applying for a bank loan.

In conclusion, it is still possible to buy a house as long as you plan your finance accordingly. Most importantly, know what you can afford and always stay realistic. Stick to your budget so you will not end up in a financial debt in the future.

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A guide to MyHome Scheme

11/18/2018

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The prices for properties in Malaysia have been increasing gradually over the years and it has become a burden for first time home buyers or young working adults who have just started working. Fret not, with so many schemes available in Malaysia to help people to own a house, buying your first property is no longer just a dream. There are many schemes available such as the PR1MA, RUMAWIP, Rumah Selangorku and many more. This article will guide you through what you need to know about the MyHome Scheme.

First of all, MyHome scheme is announced in 2013 with an aim to help the low-income families that work in the private sector to buy affordable house. The Ministry of Urban Wellbeing, Housing and Local Government together with the Department of National Housing run this scheme to encourage the private sector to build more affordable homes. In 2014, the Federal Government allocated RM300 million with the purpose of building 10,000 units of affordable homes around the country.

In order to be eligible for the MyHome scheme, one must be a Malaysian and at least 18 years and above. In addition, the applicant and his or her spouse must not own other property. Do note that there is only 1 application allowed per family. There are 2 different sizes for the house and they all cost differently, depending on the size and location.

Market Price (RM)
Actual Price (RM)
Built up size (square feet)

MyHome 1
80,000 – 120,000
50,000 – 90,000
800

MyHome 1 (Kuala Lumpur)
80,000 – 150,000
50,000 – 120,000
800

MyHome 1 (Sabah & Sarawak)
90,000 – 120,000
60,000 – 90,000
800

MyHome 2
120,001 – 200,000
90,001 – 170,000
850

MyHome 2 (Kuala Lumpur)
150,001 – 300,000
120,001 – 270,000
850

MyHome 2 (Sabah & Sarawak)
120,000 – 200,000
90,001 – 220,000
850

There are 2 different types of unit available for the applicants to choose from, however, it comes with an income limit for different categories of the house.
MyHome 1 house is open to families that earn RM3,000.00 to RM4,000.00 per month. As for MyHome 2, they are only open to families who earn between RM4,001.00 to RM6,000.00 per month. The Federal government is providing RM30,000.00 subsidy for each house. The market price for the units ranges from RM80,000.00 to RM300,000.00, but with subsidy, the houses will be sold to eligible and qualified MyHome Scheme applicants for a more affordable price, at only RM50,000.00 to RM270,000.00.

Both types of houses come with 2 bathrooms and 3 bedrooms. In addition, these units come with basic amenities, such as parking spaces, community hall, surau and playground.

In conclusion, application for MyHome Scheme is not too difficult. For more information, you can visit http://ehome.kpkt.gov.my/index.php/pages/view/62. Make sure you think thoroughly and plan carefully before you make an application. After all, it is a long term commitment that involves a huge sum of money. You definitely do not want to end up in a debt and regretting.

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Tips on financial planning before buying your first property

​​A guide to MyHome Scheme

A guide to MyHome Scheme