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Am I entitled to buy a house?

Updated: Mar 6, 2023

You've always wanted to buy a house in Malaysia, but the process appears to be lengthy and intimidating. If you are in the B40 or M40 series, it may be difficult to obtain. Where do you even begin, and how does one even go about discovering a house to shop for in the first place? How to buy a house in Malaysia? What are the procedures to buy a house in Malaysia? After all, real estate is a high-priced item with numerous moving parts, so it is critical that you get the right product the first time. Fortunately, there are a number of housing programmes available to people in these two income brackets.

In this article, we will explore the housing schemes and financing options available to help you buy your first house in Malaysia.

What housing schemes are available in Malaysia that allow the young generation to purchase their first home?

In lieu of the housing affordability issue and high home loan rejection rates, aspiring young homebuyers could explore schemes for selected affordable housing projects, as summarised in the table below.

What financing options are available to you?

Some might ask, ‘What if I'm not eligible for these housing schemes provided by the government?’ Since most of these housing plans are only available to people in the B40 and M40 age groups, competition is fierce. Don't give up because you don't deserve it! Outside of these plans, many developers continue to offer financing options with little or no down payment. You can buy a home with no money down if you find one that suits you and your financial situation.

Before signing a contract, you will need to secure financing. It is critical to get it right if you want to find the ideal new home for you, because all banks use the CCRIS report and CTOS score to determine loan eligibility. This is not to say that if one bank rejects you, the other will as well, but it does give you an idea of how a decision is made. You should also make sure you don't have too much debt, because if it is above the recommended range of 30-40%, your Debt Repayment Ratio (DSR) rises to dangerously high levels.

The first and second mortgages have a funding margin of 90%. As an example, suppose you paid RM1,000,000 for your first home. The bank will lend RM900,000, with the remaining RM100,000 paid in cash as a deposit. If you use the home loan to purchase your third home, the loan margin will be 70%. It is critical to remember that the amount you owe on your mortgage has an impact on your bank's margin of funds. If you have two mortgages, the third mortgage margin is 70%. If you pay off your first or second mortgage, for example, your margin will return to 90%. Your funding margin is determined by the number of home loans, not the number of homes. In addition, the bank pays 5% of the purchase price to cover legal fees associated with loan agreements, stamp duty, and appraisal costs. As a result, you may occasionally see ads with a mortgage margin of 90+5%.

The third home loan margin will be affected if you apply for a loan with a co-applicant. As previously stated, the first and second mortgages have a financing margin of 90%. The third one has a financing margin of 70%. Consider the case of a pair of husband and wife. They should be able to obtain four mortgages with a 90% margin (two units wife, two units husband at 90%).

However, if a couple buys their first home as joint applicants, the bank assumes that both have used their first 90% quota. Previously, they could buy four flats, but now they can only afford three at 90% margin. So, if you're thinking about the procedure for buying a house in Malaysia for investing, plan ahead of time.


How to buy a property in Malaysia? Everyone wants to buy a house and call it their own. Now that you've learned about the various housing schemes in Malaysia, buy a house in Malaysia procedures and financing options available to assist you in purchasing your first home, browse our website and find your dream home. After you've made your decision, send us a WhatsApp message to inquire about the scheme and financing options available through our dedicated agents.

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