KUALA LUMPUR: Maybank Islamic Bhd will allocate RM1bil in financing under the Sewa Milik Selangorku programme for 4,000 residential units in areas such as Bangi, Sungai Buloh and Ampang.
The bank said Selangor is the first state to partner with it to offer another viable rent-to-own (RTO) solution under the programme.
“Those eligible can apply for the RTO solution through Maybank Islamic’s HouzKEY programme,” it said in a statement.
Maybank Islamic said the RTO solution is developed based on the Ijarah contract, a syariah principle of leasing, and would provide tenants with a fixed 10-year rental payment and lock-in of property price.
Under this programme, first-time applicants will obtain 100% financing and pay low monthly rental.
From the monthly rental, 20 % of the rental amount will be kept by the bank as reserves, the total amount of which will be returned to customers at the end of the lease period of 10 years or earlier should they convert their rental into mortgage.
To recap, the Selangor government announced this programme in its 2019 state government budget presentation last Friday.
This will address the growing demand of 120,000 registered applicants with Selangor Housing and Real Estate Board.
According to Selangor Mentri Besar Amirudin Shari, the state recognises that affordability is not just about building more affordable homes but also addressing the rakyat’s woes in meeting the downpayment of owning a home.
“This partnership is the first of its kind between a state and a financial institution. We are hopeful with the implementation of Program Sewa Milik Selangorku, this will be a sustainable solution to assist the rakyat in owning homes under the Selangorku programme,” he added.
Maybank Islamic CEO Datuk Mohamed Rafique Merican said when Maybank Islamic HouzKEY was launched in January this year for properties up to RM1mil, the bank had then made plans to expand the RTO solutions to include houses within the affordable price range.
He said the RTO solutions offered is part of the bank’s value-based initiative (VBI) initiative, namely giving viable and sustainable solutions to the current challenge of home ownership and also its way of supporting Malaysia’s national agenda on home ownership.
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