Frequently Asked Questions
Skim Rumah Pertamaku (SRP)
What is Skim Rumah Pertamaku (“SRP”) / My First Home Scheme?

SRP is a home ownership initiative that was first announced in the 2011 Budget by the Government of Malaysia to assist first time house buyers to purchase their first home. The scheme allows first time house buyers to obtain up to 110% financing from the participating banks, enabling home ownership without having the need to pay a down payment.

CSRP will guarantee the banks on a ‘first-loss’ basis for financing above the 90% level.

With CSRP’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 110%). 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 110% 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 CSRP’s guarantee.

Eligibility
Who is eligible for this Scheme?

This Scheme is open to all Malaysian citizens with gross monthly household income of not more than RM5,000. Applicants with gross monthly household income of up to RM10,000 are eligible if it is under joint applications (subject to maximum gross monthly household income of RM5,000 per applicant). Nevertheless, the applicants’ age limit is subject to the financing tenure.

I am self-employed and my average monthly income is RM2,000. Am I eligible for the Scheme?

Yes, the Scheme is applicable for employees in the public and private sectors, including self-employed individuals.

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, both are eligible under the Scheme.

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?

Yes, both are eligible under the Scheme.

My spouse and I each earn RM2,000 and RM3,000 per month respectively and we wish to obtain 110% financing to purchase our first home of RM300,000. Would we qualify under the Scheme?

Yes. Individual/joint applicants with gross monthly household income not exceeding RM5,000 for individual/joint application for the purchase of property priced up to RM300,000 are eligible to obtain 110% financing under this Scheme.

How can I qualify for a 100% financing to purchase a property worth RM400,000?

You may apply for 100% financing through individual/joint applications. An individual applicant’s gross monthly household income must not exceed RM5,000 whereas the combined gross monthly household income for joint applicants must not exceed RM10,000 (subject to maximum gross monthly household income of RM5,000 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 70 years at the end of financing tenure) and meet all credit requirements of the bank, the monthly instalment of the financing for the purchase of property priced at RM400,000 should not exceed 60% of the combined monthly net household 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.

If a person inherited a residential property, does the person still meet the definition of first-time house buyer?

The objective of the initiative is to assist households to own a first residential property. As such, a person that has inherited a house is deemed to own a residential property and therefore, will not fall under this category. Prospective applicants may be required to sign a self-declaration form stating that they have not inherited or owned a residential property prior to the application.

Who qualifies as joint applicants?

The joint applicants could be the spouse, parents, children or siblings (living together in the new house), provided that the person meets the other criteria.

Property
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 loan under the Scheme?

No, the Scheme does not cover refinancing of an existing Financing.

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.

Does the Scheme cover for home construction under own land?

No, the Scheme does not cover for home construction under own land.

What type of property is allowed (e.g. SOHO, serviced apartment)?

It must be a residential property for own occupation (either under construction or a completed unit) from the primary and secondary market.

Financings
What is the maximum financing tenure?

The maximum financing tenure is 35 years, subject to applicant’s age not exceeding 70 years at the end of financing tenure and to underwriting policies of the participating banks.

Does the financing tenure exclude the construction period?

For properties under construction, the financing tenure commence from the date the financing amount has been fully disbursed.

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 financing from time to time.

Can legal fees be a part of the financing?

Legal fees may be a part of the financing depending on respective participating bank’s discretion.

Other Questions
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.

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 there be any financial assistance to cover the cost for the execution of Memorandum of Transfer?

Depending on respective participating bank’s discretion.

Does the requirement on financial education apply to first-time house buyers of property between RM300,000 and RM500,000?

The financial education module is only mandatory for first-time house buyers of property priced up to RM300,000 and with monthly gross household income of not more than RM5,000.

Does the moratorium period of 5 years applicable to first-time house buyers of property priced at RM400,000 with gross monthly household income of RM8,000 under joint applicants (single applicant gross monthly household income not more than RM5,000)?

The moratorium period of 5 years is only applicable for first-time house buyers of property priced up to RM300,000 and with monthly gross household income of not more than RM5,000.