Securing down-payment for your first home
Excerpt from the Waves, Vol 3, 2017
Have you ever found yourself thinking about how to obtain a down payment for your first home? Down payments are a prerequisite to purchasing a home hence a prudent plan is essential before signing above the dotted lines. So what do you do? We have put up some tips that you may want to consider in attaining assistance for your first down payment.
For those who are EPF members and would like to make a withdrawal from your EPF account, obtain the EPF Withdrawal Form from the EPF office or download it from here. This withdrawal allows you to withdraw from your Account 2 savings to finance the purchase of a house.
Personal Loan lets you have the extra money and freedom to do more. It's very flexible and you can get the money you need quickly and without hassle. Approval is fast and minimal documents are required.
My first home scheme (Skim Rumah Pertamaku)
Skim Rumah Pertamaku (SRP) was announced in the 2011 Malaysia budget by the Malaysian Government to assist young adults who have just joined the workforce, with single applicant gross income not exceeding RM5,000 per month and joint applicants gross income not exceeding RM10,000 per month (based on the gross maximum income of RM5,000 per month per applicant.)
Joint with family
Joint purchase with family members to pay the down payment. This is to assist accumulate the cash money from the other family members in order to have enough down payment for your dream home. Borrow from family members will be a lesser risk as you may end up without any interest occurred.
When it comes to joint name purchase, applying jointly for a loan can sometimes increase your chances of getting credit. However, you should definitely avoid applying together if one of you has a poor credit rating.
Basically, the main benefit of a joint loan is that it's easier to qualify for loans by combining the income and credit scores of two or more individuals. More income means more money to pay off the loan and borrowers with good credit scores can pull borrowers with bad credit scores above a critical score value. In this case, the person with the bad (or non-existent) credit is the real winner. It would make sense for young adults who don't have any recorded repayment behaviour - leveraging the financial stature of their parents or older family members.