Government Housing Programs You Should Know About
Whether you are a first-time buyer, loan-reject, newlywed, or low to medium-income earner, there seems to be a fitting housing program with you in mind.
Government Housing Loan Scheme
Working for the government brings you many benefits, and this is one of them. These loans come with attractive interest rates, special subsidies and are much easier to get approved. While it is not technically a housing scheme per se, the interest savings along with other assistance makes it more affordable to own your home as compared with traditional bank loans.
The loan amount is dependent on the workers’ pay scale and can be considered rather decent. It ranges between RM120,000 and RM600,000, with the latter still making it possible to purchase a ‘nice house’ in the Selangor city area.
🏡 Repayments deducted from salaries – Make certain that in addition to servicing this loan, you still have enough left over to maintain household expenditure and as well make payments toward your other commitments.
🏡 Employment status – Plan out your employment tenure as government loan approvals require you to serve for a minimum of one year and be a permanent confirmed employee with at least a year remaining before retirement or end of service.
If you can only afford homes within the selling price of RM80,000 and RM250,000 (depending on location), then you may benefit from the MyHome Scheme which is under the supervision of the Ministry of Urban Wellbeing, Housing and Local Government. The program is aimed at first-time aspiring homeowners who fall under the category of low to middle-income earners.
How it works is similar to PR1MA, whereby approved applications will still need to go through a balloting process. The program helps reduce the purchase price of low to medium-cost homes by offering a subsidy of up to RM30,000 to aid buyers and at the same time provide an incentive for developers to build.
🏡 First Come First Serve – Interested buyers should apply as soon as possible, but note that even though you are a qualified buyer, your application will still require review from the ministry before selection through balloting.
🏡 Resale moratorium and owner-occupancy – As with PR1MA, the property may not be sold for 10 years and is meant to be owner-occupied.
The Downside to Government Programs
The truth is that although these schemes are much-needed and thoroughly appreciated to the cause of home ownership, not every deserving applicant will benefit from the opportunity.
In addition, most of these programs are accompanied by a special set of stipulations and could vary from state to state. It will no doubt be disheartening to those with rejected applications as these assistance programs truly do come with a lot of promise.
But still, don’t be put-off by the possibility of rejection; instead arm yourself with as much information as possible to ensure your application is solid. Also, keep in mind that some of these initiatives are still having the kinks ironed out and are in pilot phase – so you will need to stay updated from time to time for any change in details that could affect your situation.