How can I, a first-time homebuyer, come up with the 20% upfront payment, and how can I benefit?

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.

Table 1

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.

Table 2