As one of the more innovative banks in Malaysia, Bank Rakyat has turned its attention to encourage first-time home owners, especially young adults, to secure home financing, especially when many constraints affect the property market.
Introducing the Bank Rakyat My1st Home package, this scheme allows first-time home buyers to obtain up to 110% financing to support their asset creation. It covers the Mortgage Reducing Term Takaful (MRTT), legal fees and valuation charges.
First-time home buyers are not limited to the primary property market as the package also covers the secondary market or auction property. This means those who successfully secure their home financing can quickly move into their dream home if they choose the secondary market, which makes up the majority of the property market.
Eligible applicants can opt for a financing tenure of up to 35 years or 70 years of age, whichever is earlier. The Bank Rakyat My1st Home package is specifically designed for those seeking financing for an owner-occupied property and not as an investment property. The minimum financing amount is RM35,000.
Those seeking refinancing or a subsequent property can choose the Zero Entry Cost (ZEC) package, which is available for both the primary and secondary property markets.
It offers up to a 90% margin of financing and an additional 5% for the Mortgage Reducing Term Takaful (MRTT). Applicants will be pleased to note that the moving costs (legal, stamping and valuation fees) of up to 2.5% from the financing amount will be borne by Bank Rakyat, monikered as Your Bank of Choice.
Bank Rakyat does not impose a limit on the financing amount as this will depend on the applicant’s financial standing. Similarly to the first package, applicants can opt for a financing tenure of up to 35 years or 70 years of age, whichever is earlier.
Another good news is that applicants can refinance their existing home financing with a cash pay-out option to consolidate other financial commitments for renovation or personal use.
As a result, home refinancing via ZEC can provide significant relief and this package offers that much-needed lifeline.