SEMENYIH: Prospective first-time homeowners will find it much easier to finance a roof over their heads, with the launch of a new scheme matching first-time buyer with financial institutions.
The scheme, designated “FundMyHome.com” and developed EdgeProp Sdn Bhd, was launched by Prime Minister Prime Minister Tun Dr Mahathir Mohamad, together with Edge Media Group chairman Datuk Tong Kooi Ong at Ecoworld’s EcoMajestic development here, with Finance Minister Lim Guan Eng in attendance as well.
The scheme will have homebuyers putting down 20% of the property price, and the balance 80% will be contributed by Maybank and CIMB as participating financial institutions.
According to FundMyHome, this frees up the homebuyer’s funds for other commitments, as there is no monthly repayment as per a conventional mortgage.
After a commitment period of five years, the buyer can choose to sell the home, buyout at remaining portion of the property not owned by him or her at market price, or refinance the home either via FundMyHome or a normal bank mortgage.
The investors meanwhile, will profit from either regular yields, or increases in the property’s value.
Dr Mahathir said the current situation was one of many homes built but were left unsold, but there were a lot of Malaysians who could not afford to buy one.
The new system, he said, would open up opportunities for Malaysians who were unable previously, to now afford a shelter over their heads.
This morning’s launch will feature about 1,000 home units in FundMyHome’s first phase, with prices less than RM500,000.
Dr Mahathir and Tong also handed out mock-keys to three first-time homebuyers who had obtained properties at EcoMajestic.
Aside from Ecoworld, participating developers include IJM Land, IOI Properties, Mah Sing, PKNS, PNB development, Sunway, Trinity Group and UEM-Sunrise.
“FundMyHome also democratises home ownership and stimulates the housing industry without any government expenditure or guarantees,” Tong said, adding that housing is also a critical element of wealth as it operated as a vehicle for household saving.
Tong explained that the five-year commitment period was to help first-time homeowners, and that it was not aimed for speculation
Down the road, he added, FundMyHome would add a room rental platform to help the first-time homeowners monetize their purchases and vacant rooms as well.