Skim Rumah Pertamaku (SRP)
What is Skim Rumah Pertamaku (SRP) / My First Home Scheme?
The scheme is one of the measures announced by the Government in the 2011 Budget aimed at assisting young adults to own a home. The scheme allows homebuyers to obtain 100% financing from financial institutions, enabling them to own a home without having the need to pay a 10% down payment.
Cagamas SRP Berhad will guarantee the banks on financing above the 90% level i.e. if an applicant obtains 100% financing, Cagamas SRP will guarantee 10% (from 90% to 100%) of the financing.
With Cagamas SRP Berhad’s guarantee, does it mean applicants under the Scheme are only liable to the bank for 90% financing only?
No, the applicants are liable to the bank for the full financing amount (up to 100%). The guarantee only indemnifies the bank for any loss incurred as a result of financing above the 90% level.
Do I have to pay a higher interest/profit rate or any fee to enjoy up to 100% financing under the Scheme?
No, the normal interest/profit rates of the respective banks shall apply and applicants do not have to pay for the Cagamas SRP Berhad’s guarantee.
Who is eligible for this Scheme?
This scheme is open to all Malaysian citizens aged 40 years old or less (age next birthday is 40 years old or less) with gross income of not more than RM5,000 per month for single applicant and gross income of not more than RM10,000 per month for joint applicants (based on gross maximum income of RM5,000 per month per applicant).
I am self-employed and my average monthly income is RM2,000. Am I eligible for the Scheme?
No, the scheme is limited to employees in the private sectors including statutory bodies that do not offer government staff house financing facility.
I am working with a statutory body while my spouse is working with the private sector. Are we eligible as joint applicants under the Scheme?
Yes, you are eligible as joint applicants under the Scheme for as long as the statutory body you are working with do not offer government staff house financing facility.
I am self-employed while my spouse is an employee in a trading company earning RM2,000 per month. Are we eligible as joint applicants under the Scheme?
No. Only your spouse is eligible to apply because your spouse is an employee in a private sector. In addition, she has to meet all other criteria under the scheme.
My spouse and I each earn RM2,000 and RM3,000 per month respectively and we wish to obtain 100% financing to purchase our first home of RM300,000. Would we qualify under the Scheme?
Yes. Under the Scheme, total financing obligations for single or joint applicants must not be more than 60% of their combined net monthly income. Assuming existing present total financing obligations (car instalment + personal financing) is RM1,200. In this case, maximum monthly payment for the mortgage financing under SRP should not exceed RM1,410 per month as shown below.
Example of calculation :
- Gross combined income : RM2,000 + RM3,000 = RM5,000
- Net combined income : RM4,350 (income after statutory deductions i.e. tax, EPF & SOCSO)
- 60% of RM4,350 = RM2,610 (total financing obligations)
- Mortgage financing payment should not exceed : RM2,610 - RM1,200 = RM1,410
Based on current interest/profit rates and permitted maximum financing tenor of 35 years (subject to applicants’ age not exceeding 65 years at the end of financing tenure), your maximum eligible financing amount is about RM294,000.
How can I qualify for a 100% financing to purchase a property worth RM500,000?
You may apply for 100% financing through joint applicants with a combined gross income not exceeding RM10,000 per month (based on gross maximum income of RM5,000 per month per applicant). Assuming both applicants have zero financing obligations at the point of application, financing tenure is 35 years (provided both applicants age do not exceed 65 years at the end of financing tenure) and meet all credit requirements of the bank, the monthly instalment of the financing should not exceed 60% of the combined monthly net income of the applicants.
My friend and I meet all the criteria. Can we jointly apply for financing under the Scheme?
No, joint applicants must be family members, i.e. husband and wife or siblings only, and they must all meet the criteria set.
Does the Scheme cover completed properties as well as those under development?
Yes, the Scheme covers both completed properties and those under development. The guarantee is effective upon full disbursement of the financing.
My spouse and I would like to buy a property at RM300,000. Will we be entitled to RM300,000 financing if we meet the income criteria?
Valuation of the property is subject to the participating bank’s underwriting policy. Generally, banks will finance based on purchase price or valuation (open market value) from their panel valuer whichever is lower.
My existing financing was taken up for the purchase of my first home. Am I eligible to refinance the facility under the Scheme?
No, the Scheme does not cover refinancing of an existing facility.
Are there any limitations on the type of residential properties or locations under the Scheme?
The type of residential properties and locations are subject to participating banks’ underwriting policies.
How do I apply for financing under the Scheme?
Application can be made at any branch of the participating banks.
Can I apply for Islamic financing under the Scheme?
Yes, the Scheme covers both conventional and Islamic financing.
What is the maximum financing tenure?
The maximum financing tenure is 35 years, subject to applicant’s age not exceeding 65 years at the end of financing tenor and to underwriting policies of the participating banks.
Do I need to purchase fire insurance/takaful and Mortgage Reducing Term Assurance (MRTA) / Mortgage Reducing Term Takaful (MRTT)?
The applicant(s) will have to purchase fire insurance/takaful. However, MRTA/MRTT requirements will depend on the requirements of the participating banks.
Will the financing approval process be subject to the bank’s underwriting and credit standards?
Yes, the participating banks will continue processing and approving the financing based on the Scheme’s qualifying criteria and the respective bank’s underwriting and credit standards which should comply with all guidelines issued by Bank Negara Malaysia relating to lend/finance from time to time.