Great news for first time home buyers! For those incomes below RM3000 no need to make 10% down payment on house purchased as they can obtain 100% full loan. It brings more benefits to those low income group and fresh graduates who face difficulties in buying their house.
Under this My First House Scheme (Skim Rumah Pertamaku), the 10% down payment will be guaranteed by Cagamas Bhd for houses purchased below RM220,000.
Another good news is house buyer will enjoy 50% on stamp duty exemption for house priced below RM350k. So, basically our government increase it from RM250k-350k. Refer to my previous article 50% Stamp Duty Waiver For House Purchased. However, I’m not sure whether this initiative will speed up the bursting of the housing bubble or not, so we will see.
Drawback of 100% Housing Loan For First Home Buyers
If 100% housing is given to the buyer, then they may have higher monthly installment as the loan amount is higher too. Thus, they may face financial burden.
If let say Mr. M have made deposit for booking the house but still not sign SPA. and he will be signing next year after the project start (assume February 2011), then would he deserve to apply this scheme?
Do you think will property price be increased since now many people can buy house?