Buying your first home in 2019? Here are 3 schemes to help young Malaysians

​Announced under Budget 2019, first-time homebuyers should take advantage of the schemes that are being rolled out by the federal government.

By Khalil Adis

A shophouse in Negri Sembilan with the Malaysian flag. First-time homebuyers can apply for various schemes under Budget 2019. Photo: Khalil Adis Consultancy.

​In case you had missed the good news that was announced during Budget 2019, there will indeed be more help coming your way if you need help in buying your first home this year.

Here are the quick low-down on what the schemes are.

#1: P2P (peer-to-peer) Funding

Under this scheme, you will need to put down a 20 per cent deposit while the remaining 80 per cent will be financed by investors. Infographics: Khalil Adis Consultancy.

What: 
This is a private sector-driven “Property Crowdfunding” platform to serve as an alternative source of financing for first-time house buyers.

It will be regulated by Securities Commission.

When: 
The P2P exchange will go live in the first quarter of 2019. 

How it works:  
Interested applicants will need to put a 20 per cent downpayment while the remaining 80 per cent will be funded by investors.

Exactly when and how this will be done will be announced closer to the date by the Finance Ministry.

Who should apply: 
Those who have the required 20 per cent downpayment. It is not clear if this is in cash and/or EPF.

#2: RM1 billion fund allocated for first-time homebuyers

Malaysians attending a talk at Havoc Hartanah Kuala Lumpur in September 2015. A special fund has been set up for those earning less than RM2,300 a month. Photo: Khalil Adis Consultancy.

​What: 
This is a special fund for those earning less than RM2,300 a month.

The fund can only be used to purchase properties priced up to RM150,000.

Bank Negara will be setting up the fund. More details here

When:
The fund is available for two years until the allocation is spent as of 1 January 2019.

You may apply for them at the following banks at a rate of 3.5 per cent:

#3: RM25 million fund allocated for first-time home buyers

Johoreans attending Havoc Hartanah Iskandar Malaysia in November 2014. This fund is meant for those earning up to RM5,000. Photo: Khalil Adis Consultancy.

What: 
This is a special fund meant for those with a household income of up to RM5,000

The fund provides a mortgage guarantee to enable borrowers to obtain higher financing, including deposit fees.

The fund can is for first-time house buyers who are purchasing properties worth up to RM500,000

The fund will also provide a grant stamp duty exemption of up to the first RM300,000 on transfer instruments and loan agreements for two years until Dec 2020.

The fund will be run by Cagamas. 

When:

Unfortunately, details are scant. You may check Cagamas Bhd for updates.