MBSB launches financing scheme for first time home buyers

PETALING JAYA (March 30, 2012): Malaysia Building Society Bhd (MBSB) has introduced a new home financing package targeted at first time home buyers below the age of 35.

Dubbed the MBSB My First Home Scheme, the scheme launched on March 30 entitles Malaysians below the age of 35 to enjoy the option of purchasing their first home with a ceiling price of RM500,000 at 100% margin of financing and the exemption of the normal 10% downpayment.

According to MBSB president and CEO, Datuk Ahmad Zaini Othman, he hopes that this scheme will provide a relief to the targeted group who are mainly newcomers to the workforce and are challenged by the rising costs of living.

"This scheme is definitely in support of the government's call to promote home ownership among young generations in Malaysia," he added.

MBSB, he says, expects to approve and disburse RM500 million worth of loans by the end of this year through this scheme covering all types of homes even auctioned units.

He explained that the difference between MBSB's scheme and the government initiated My First Home Scheme  (Skim Rumah Pertamaku) is that MBSB is offering its applicants 100% financing instead of the 90% offered under the Skim Rumah Pertamaku.

MBSB's scheme also does not have a minimum income eligibility as the net income eligibilitiy depends on where the applicant works and the applicant's profession with the option of having a joint borrower.

"For instance, an applicant with a net income of RM6,000 to RM7,000 can still be found eligible provided he or she buys a home within their net income range," he added.

Ahmad Zaini said although MBSB is not governed by Bank Negara's rules, it will observe Bank Negara's guidelines and the spirit of its guidelines.

Ahmad Zaini said the MBSB's screening process for applicants applying for this scheme could be seen as "equivalent or better than other financial institutions."

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