SEMENYIH (Feb 20): The Housing and Local Government Ministry today announced a pilot scheme to ease homeownership among the B40 group. Known as the FundMyHome+DepositKu scheme, the initiative enables first-time homebuyers under FundMyHome, the flexibility to obtain a loan of up to RM30,000, said Housing and Local Government minister Zuraida Kamaruddin who launched the scheme today.
“I’m proud to announce that Harmoni Apartment at Eco Majestic, Semenyih has been selected as the pilot project for FundMyHome+DepositKu. It was a proposal by EdgeProp to help those who find it tough to purchase a home,” said Zuraida.
The scheme is open to Malaysian first-time homebuyers in the B40 group for the purchase of a home priced at RM300,000 and below from the FundMyHome platform. Approvals are subject to final vetting by the ministry.
The FundMyHome platform, developed by EdgeProp Sdn Bhd (EdgeProp), was launched in November last year by the Prime Minister Tun Dr Mahathir Mohamad. FundMyHome brings together first-time homebuyers and institutions in a mutually supportive relationship.
Under FundMyHome, buyers pay 20% of the purchase price to own a home without bank mortgage and monthly repayments. The balance 80% of the cost of the property is contributed by participating institutions, who share the returns from changes in the future value of the home.
While it does not substitute the traditional way in which people buy homes, FundMyHome offers lower income Malaysians who do not qualify for a traditional bank mortgage an opportunity to own a comfortable home in a conducive neighbourhood.
“Since its launch, more than 7,000 users have signed up on the FundMyHome platform. However, the most common issue faced by many of these prospective homebuyers is their inability to raise the required 20% payment,” explained EdgeProp Sdn Bhd chairman Datuk Tong Kooi Ong in his speech.
Hence FundMyHome+DepositKu is a proposed solution by EdgeProp to the government to address these concerns.
More than 20 buyers have purchased their homes under the FundMyHome+DepositKu scheme so far. At the launch, Zuraida presented some of the buyers with mock keys to their new homes.
Under FundMyHome, a homebuyer seeking to buy a RM307,000 home is required to pay 20% of the purchase price or RM61,400 to own the home. The balance 80% (RM245,600) will be funded by institutions.
With FundMyHome+DepositKu, the same homebuyer, if eligible, will receive RM30,000 from the government to help with the 20% payment. As a result, the homebuyer only needs to pay RM31,400.
If the buyer is eligible for the 7% bumiputera discount (RM21,490), then he or she only needs to pay RM9,910 to own the home.
“We understand the difficulties faced by first time home buyers in raising funds for their home purchase. This loan initiative is a natural evolution for FundMyHome that helps lower the entry barrier and at the same time, allow them to build equity in their homes,” Tong said.
“We will continue to innovate towards our goal of making it easier for Malaysians to own a home,” he added.
*This article is written by Rachel Chew for EdgeProp.my