You may draw on your own savings, approach friends and family for assistance or take a personal loan from a bank.
Paying the 20% with savings
Let’s say you now rent.
Assume you have some savings or are able to gather from family the RM60,000 needed to pay 20% of a RM300,000 home under FundMyHome. You move in, paying nothing more over the next five years. You would have saved a total of RM72,000 and have equity of RM60,000 to show for at the end of the period.
Paying the 20% with a personal loan
Alternatively, if you take out a personal loan to fund the 20% of a RM300,000 home under FundMyHome, your monthly payments are equivalent to building up equity in the home. At the end of five years, you would have saved RM60,000 in a home under your name.
In contrast, if you had continued to rent for five years paying RM1,200 a month,you would have spent RM72,000 but have nothing to show at the end of five years.