HURDLES FOR FIRST TIME HOMEOWNERS

ANYONE earning up to RM5,000 who wishes to buy  a  first home may now take up a loan under the government's My First Home Scheme (SRP). This is because the income limit of individual borrowers has been increased from RM3,000 to RM5,000 beginning this month.

SRP was first introduced by the government in the 2011 National Budget in order to assist young adults to own their first home. Under the scheme, homebuyers aged 35 years and below were able to obtain 100 percent financing from financial institutions. This would allow them to own a home without having to pay a 10 percent down payment.

The National Mortgage Corporation, Cagamas SRP Berhad would guarantee the initial 10 percent of the loan through the SRP scheme.

According to Cagamas SRP Berhad, this enhancement was one of the SRP's eligibility criteria slated for improvement under the 2013 Budget announcement last year.

The income limit has also been increased up to RM10,000 per month for joint borrowers, provided that neither borrower has an income exceedingRM5,000 per month.

"In addition, the requirement for a savings record equivalent to three months installment and minimum employment of six months will be abolished," Cagamas SRP said.

Cagamas was established in 1986 to promote a broader spread of house ownership. In 2011, it was was given the role of helping young working Malaysians in the private sector to own their first homes. (Insight Sabah)