What do I need to know about Affin Bank My First Home Scheme?
This home loan scheme is also known as Skim Rumah Pertamaku (SRP), a Malaysian government programme to assist young working adults to own their very first home at lower interest rates and cheaper monthly repayments.
With SRP, it's now affordable to own a house without having to save up for a down payment, which can amount to more than RM10,000!
Well, what are the requirements for “young adult” home buyers?
You must be a Malaysian who is aged between 18 and 40, and have yet to own a house. For an individual home loan borrower, your income should not exceed RM5,000 a month, while joint borrowers' combined monthly income should not exceed RM10,000, provided that each borrower's monthly income is not over RM5,000.
How long can I pay for my Affin Bank housing loan?
You can stretch your loan repayment up to a maximum of 35 years or until you reach the age of 65, whichever comes first. For example, if you apply for the Affin Bank My First Home Scheme at the age of 40, your financing tenure can only go up to 25 years.
The lock-in period for this loan is 5 years. If you pay off your loan within 5 years, you will have to pay an early settlement fee.
What kind of properties can I buy under the Affin Bank SRP?
All residential properties located in Malaysia are eligible for this mortgage, whether completed or under construction. The minimum property value is set at RM100,000 up to a maximum of RM500,000.
If you plan to make your house an investment and rent it out, your mortgage will not be approved by a bank. You must occupy the house yourself to be able to get the loan from Affin Bank.
How to pay the mortgage installment?
You can pay for your Affin Bank My First Home Scheme by setting up a standing instruction or salary deduction - so there's zero chance of you paying for any late repayment fees! As this is a conventional term loan, you will not be able to withdraw any cash from your loan account.
Is it compulsory to purchase insurance or takaful?
Under Affin Bank Skim Rumah Pertamaku, it is compulsory to buy fire insurance or Takaful. However, the Mortgage Reducing Term Insurance (MRTA) is an optional insurance that will provide financial protection in the event of your death, diagnosis of terminal illness, or total permanent disability (TPD).
The outstanding mortgage loan amount will be paid off once the mentioned unfortunate event takes place.
What documents do I need to apply for this mortgage?
All applicants must submit:
- Affin Bank My First Home Scheme application form
- Copy of NRIC
- Sales & Purchase Agreement or booking receipt from developer
- Valuation report (for completed land)
- Copy of the Title Deed
Fixed income earners:
- Last 3 months' salary slips
- Latest EA form or Borang B with tax payment receipt
- Latest pension statement (pensioners only)
- Latest 6 months' commission statement (commission earners only)
- Latest EPF statement
- Latest 3 months' bank account statement
- Letter from employer
Self-employed:
- Latest Borang B with tax payment receipt
- Latest 6 months' business account statement
- Latest 6 months' personal account statement
- Latest Profit & Loss account
