FLASH: Govt to work with financial institutions to introduce Rent-To-Own scheme

To assist those who are unable to pay 10% deposit and to secure the access of home purchase financing, the Government will be working with financial institutions to introduce a Rent-To-Own scheme.

Through this scheme, RM10 billion financing will be provided by financial institutions with the government’s support through a guarantee provision of 30% or RM3 billion.

This RTO scheme is open to the purchase of first home worth up to RM500,000. Under this scheme, the applicant will rent a house for a period of up to five years and after a year, he/she will be given the option to purchase the relevant residential house at a fixed price when the rental agreement is signed.

The government will also provide the full exemption of stamp duty on transfer instruments between developers and financial institutions, as well as between financial institutions and the prospective buyers.