FMH+DepositKu participants now ready to move into their new homes

PUTRAJAYA: The first batch of homebuyers under the FundMyHome+DepositKu scheme are glad to finally have a home of their own. As many as 16 of these first-time homebuyers received their final documents for the scheme from Housing and Local Government  (KPKT) Minister Zuraida Kamaruddin at an event held in Putrajaya on July 24.

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Launched early this year by Zuraida, the FundMyHome+DepositKu scheme is a joint initiative between EdgeProp Sdn Bhd (EdgeProp) and KPKT. It allows eligible FundMyHome (FMH) participants to apply for a loan of up to RM30,000 from the government through DepositKu. The loan is to assist the participants to pay off the 20% house price deposit required under the FMH scheme.

Developed by EdgeProp and officiated by Prime Minister Tun Dr Mahathir Mohamad in November last year, FMH is a platform that brings together first-time homebuyers and institutions in a mutually supportive relationship.

Under FMH, buyers only need to pay 20% of the property price. They do not need a bank mortgage, so there are no monthly repayments. The remaining 80% of the purchase price is contributed by participating institutional co-investors, who will be sharing the upside in the future value of the property.

“FMH is a viable alternative homeownership scheme. The process of owning a home under the scheme may be tough at the beginning (20% down payment), but the following five years you do not need to pay anything. 

“Moreover, you can choose to stay on or sell the house five years later and share the upside of the property value. Who knows, the appreciation in the house price may offset the 20% you paid to own this home five years ago,” said Zuraida in her speech at the event.

Participants of the scheme will also be offered a 30% discount in a special move-in package from Panasonic Malaysia, which comprises a refrigerator, washing machine, two ceiling fans and a 40-inch television. Those who were present also received gifts of rice-cookers and table fans from Panasonic Malaysia.

Also present at the event was EdgeProp chairman Datuk Tong Kooi Ong, KPKT deputy secretary general (Policy) Datuk Dr Mary Wong and other senior ministry officials.

According to Tong, since the launch of FMH, over 8,000 people have expressed interest in buying a home on the platform. However, the most common issue faced by these prospective homebuyers is their inability to raise the required 20% deposit towards the purchase.

“Today, we address the second challenge – the inability of buyers in paying the 20% down payment – with the DepositKu scheme by the Ministry of Housing. DepositKu will fund up to 10% of the home price for qualified buyers, subject to a maximum of RM30,000.

“This means that for a RM300,000 home, homebuyers need to only raise 10% down payment or RM30,000, while the other 10% will be from the DepositKu scheme with the balance 80% from the investors of the FMH platform,” Tong said.

At the end of five years, the beneficiaries of the DepositKu scheme would have several options made available to them. They can either repay the loan or convert it into a subsidy. And under FMH, they can either: sell the property and share the proceeds with co-investors; buy the property by cash or with a bank mortgage; or roll over the property on the FMH platform for another five years.

The FMH+DepositKu scheme is open for all first-time Malaysian homebuyers, aged from 21 to 60, with a household income of under RM10,000 per month.

This story first appeared in the EdgeProp.my pullout on July 26, 2019. You can access back issues here.