PETALING JAYA, Nov 21 – Prospective buyers of 1Malaysia People’s Housing (PR1MA) homes can expect guaranteed financing to buy them. The scheme will enable buyers, who were successful in the balloting, the option to get their own financing or choose from PR1MA panel bankers, said PR1MA Corp Malaysia chief financial officer Hasleen Isnin.
Prime Minister Datuk Seri Najib Razak will launch the scheme in January. It is targeted at the middle- income group with a household income of RM2,500 to RM10,000. Under the scheme, Malayan Banking Bhd, CIMB Bank Bhd and Malaysia Building Society Bhd will offer loans of up to 110 per cent of the sale and purchase price at zero-entry cost.
Hasleen said the financing would cover legal fees, stamp duty and valuation fees, as well as the option to start paying instalments upon signing the sales and purchase agreement (SPA), or after the handover of keys. “If buyers are unable to secure a loan with the panel banks, PR1MA will step in and buy the property with the rent-to-own (RTO) option for buyers.
“However, applicants must apply to the banks before they are eligible for the RTO. This is to prevent them from taking a shortcut without trying to get a loan first.” No down payment is needed under the scheme. Buyers will be covered with Mortgage Reducing Term Takaful from death and total permanent disability. In September, PR1MA Corp Malaysia chairman Tan Sri Dr Jamaluddin Jarjis announced the launch of RTO to help first-time buyers who were unable to secure loans but needed a home.
Hasleen said RTO would allow buyers to own properties by paying rent with the option to buy the properties at any time. “In cases of misfortune, such as retrenchments and death of buyers, family members are waived from paying rental for up to a year.” PR1MA Corp Malaysia chief executive officer Datuk Abdul Mutalib Alias said RTO would be offered in two variants: RTO with savings and RTO without savings.
After 10 years, a buyer may purchase the property at its SPA price, or it will be given back to PR1MA. “However, I foresee many will opt to buy the houses as future property prices would have risen significantly,” he said. As at Oct 20 this year, 97,887 units have been approved by PR1MA in 32 locations nationwide. Mutalib called on Malay reserve and endowment (wakaf) landowners to come forward as PR1MA was seeking land to be developed. “If the location is suitable and the price is reasonable, we will consider buying it from the owners and develop more PR1MA homes.”