My First Home Scheme

The Prime Minister launched the "My First Home Scheme" on 8th March 2011.  This scheme enables young adults with monthly salary of RM3,000 and below to buy their "first" home worth between RM100,000 to RM220,000 with "100%" financing.

How does it work?  According to reported news, the government sets up a mortgage corporation, called Cagamas Berhad, which will pay for those qualified applicants the initial 10% downpayment upon signing the Sales & Purchase Agreements.  So far, the following "requirements" need to be fulfilled to qualify for this scheme:

1.  The applicant must be a Malaysian;

2.  Age: 35 or below;

3.  Monthly Salary:  RM3,000 or below;

4.  The purchase price must be between RM100,000 to RM220,000.

5.  Monthly repayment sum must NOT be more than one third (1/3) of the applicant's salary.

I tried to contact some banks for further information.  So far, no news beyond what was announced.  Bank officials asked for some time to inform us of any new development as far as procedures are concerned.