Govt to help Malaysians to buy their first house

11 Oct 2019 / 18:20 H.

PETALING JAYA: The government will work with financial insitutions to introduce Rent To Own (RTO) scheme for Malaysians who are unable to pay the 10% deposit to buy their first house.

Finance Minister Lim Guan Eng said a total of RM10 billion in loans will be provided by financial institutions for RTO. The ceiling price of the house is RM500,000.

“Under this scheme, the applicant will rent the home for up to five years and after one year, will be given the option to purchase the home at the price set upon signing the lease,” he said in delivering Budget 2020.

“The government will also grant full stamp duty exemption on transfer instruments between developers and financial institutions, as well as between financial institutions and prospective buyers.”

The government will also will reduce the threshold value for condos and apartments in urban areas from RM1 million to RM600,000 by 2020 for foreign ownership to reduce the number of unsold houses, estimated at RM8.3 billion in the second quarter of 2019.

Lim added that the government will extend the Youth Housing Scheme operated by Bank Simpanan Nasional from Jan 1, 2020 to Dec 31, 2021.

“The scheme also offers a 10% loan guarantee through Cagamas to enable borrowers to get full financing and monthly instalment of RM200 a month for the first two years,” he said.

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