The basic criteria is that you must be a Malaysian, aged 18 and above, and not a bankrupt.
A common question users frequently ask is, “Do you need to screen my CCRIS and CTOS reports?”
We understand. You are worried about not being eligible for a bank loan because of weak credit scores. It is more common than you think.
While you would want a high score when buying a property with a mortgage, you don’t need excellent credit to be eligible for FundMyHome although buyers are screened for bankruptcy.
What FundMyHome offers is an alternative way to finance your first home without a mortgage.
Here’s how it works.
Now, let’s look at what you can afford.
All properties listed on FundMyHome are priced within RM300,000 to RM500,000. Only trusted, reputable developers are selected to be in onboard, so you can be assured that the quality of living is not compromised.
On this list you will see projects that are “Fully Funded” and “Funding in Progress”. What it means:
Fully Funded are properties with complete funding from institutional investors. With the 80% locked in, buyers will only need to pay the 20% to sign the SPA and own the home.
Funding in Progress are properties that will be opened for funding upon receiving a booking from buyers. After a buyer pays the booking fee (2% of the 20%), FundMyHome will seek investors to fulfill the 80% within 30 days.
If you pick a Fully Funded apartment priced at RM307,000, you only need to pay 20% to own it via FundMyHome. That is RM61,400 – a one-time payment which you can finance in a few ways:
- A portion of your own savings + borrowings from family
- Personal loan (we have done the math here)
- FundMyHome+DepositKu scheme, a loan by KPKT up to RM30,000
Why choose FundMyHome over other schemes?
Depending on your financial circumstances and where you’d like to stay, you would find yourself comparing housing or home ownership schemes to fit your needs. FundMyHome is just one of many options available to you.
What FundMyHome offers that others don’t is a mortgage-free way to own a home. How will this benefit buyers?
No monthly repayments!
This could mean more breathing room to manage your cash flow in the next few years.
No more renting!
Do you really want to pay more rent over 5 years? We’ve covered it here.
Congrats, you have equity!
The good news is, you did not burn all your money. What you pay now goes to building your equity. Let’s say you have picked Harmoni and paid RM61,400. You now have RM61,400 worth of equity in your FIRST property. If you had chosen to finance it via a home loan, you do not own this equity in the first 5 years – your lender does.
This brings us to the next point…
You may get your 20% back
Property prices tend to go up year-on-year. Even if it doesn’t and your property value remains the same at Year 5, you can potentially get your 20% back if you decide to sell it.
And finally, KPKT (Ministry of Housing and Local Government) has come on board to help first time homebuyers pay a portion of the 20% with a loan. Under FundMyHome+DepositKu, a pilot project with KPKT, home buyers can apply for a government loan of up to RM30,000, with repayments due only after 5 years. You can read about the launch here.
Within a period of 5 years, you should have a financial plan to improve your credit score and manage your savings, whether you choose to sell the home at Year 5 or to refinance it.