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Maybe some young people in this country are unaware of the Youth Housing Scheme, an initiative that allows them to get full financing to purchase their dream homes.
For their information, Bank Simpanan Nasional (BSN) has been appointed by the Malaysian government to implement this scheme effective from 1 January 2020 until 31 December 2021.
To make your life easier, RED ANGPOW has compiled five essential facts about this scheme.
Who is eligible?
If you are a Malaysian youth between 25 to 40 years old with a household income of less than RM10,000 a month, you may apply for this scheme.
Please bear in mind, you must be married.
For those who are still singles, better tie the knot first before filling in the application form.
Yup, the scheme only covers first-time homebuyers.
Details on financing
Amount: Up to 100% from the minimum of RM100,000 to RM500,000.
Tenure: Up to a maximum of 35 years or not exceeding the age of 65 years, whichever comes first.
Interest/profit rate: Up to a maximum base lending rate (BLR) / base financing rate (BFR) -2.4%.
Financing concept: Islamic and conventional.
What do you get from the government?
Homebuyers under this scheme need to pay an installment of RM200 every month for the first two years, starting from the first loan drawdown.
Furthermore, they are eligible to receive a 50% discount on stamp duty for the loan agreement.
Documents you must bring to the bank
Besides the BSN loan application form, you have to present proof of purchase such as sales and purchase agreement, the receipt for the deposit or proforma purchase order.
Don’t forget to attach a copy of Mykad, payslip and bank statement.
Please refer to the BSN website for further details.
Payment will be made via monthly crediting to GIRO/GIRO-i account.
Also, homebuyers are responsible for paying the legal fee.
Just in case you don’t know, this scheme is implemented through a smart partnership with Cagamas and Employees’ Provident Fund (EPF).
So, you may also opt for withdrawal from your EPF account.
Finally, loan applications are subjected to credit guidelines set by BSN.
Before we depart
The Youth Housing Scheme is only limited to 20,000 homebuyers during the two years of its implementation.
What you are waiting for, young people?
Hurry up and submit your application while stocks last.