Is This The Right Time To Buy Your New Home?
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A home is more than just a shelter. It’s a place where memories are made, where friends gather, and where families grow. For some of us, it doubles as an environment for both rest and productive work. For the rest of us, it’s a sanctuary to head home to after a long day.
In other words, buying the right home isn’t just a financial transaction – it’s an investment in your quality of life.
Unfortunately, the right home is out of reach for many of us. The median home price in Kuala Lumpur is RM498,000, while the median monthly household income in 2019 was only RM5,873. Imagine if you earned RM5,873 a month – if you could only save 10% of your income to buy a new home, it would take you around seven years before you could afford a 10% down payment for an RM498,000 home!
On the upside, buying a new home could be much easier this year, thanks to low home financing rates and property incentives that are available in 2021. If you have been putting off buying a home due to financial reasons, this could be the year to make the move. Here’s why.
Extension of Home Ownership Campaign
The Home Ownership Campaign (HOC), which first ran throughout 2019, was launched by the government to help Malaysians afford residential properties. It was introduced again last year and was supposed to end on May 31, 2021. However, it’s been extended again until December 31, 2021.
This is good news for homebuyers, as it makes buying a new home a lot more affordable:
Low interest/profit rate environment
It’s also a good time to consider homeownership as the overnight policy rate (OPR) is at an all-time low of 1.75%.
Here’s why it matters: banks use the OPR to determine its Base Rate, and currently, the OPR is the lowest it has ever been, which means that you’ll enjoy lower monthly payments.
Affordable financing with Maybank Islamic HouzKEY
On top of the HOC’s benefits and low home financing rates this year, there’s something else that can make buying a home easier: Maybank Islamic HouzKEY. This homeownership financing solution helps you buy your first or second home by offering full financing – no down payment required.
It also offers these features to make homeownership more accessible:
- Low monthly payments. During the initial five-year tenure, you only need to pay the profit charges. After five years, your payments will be based on the principal and profit payments. This enables lower payments during your initial tenure, which can be more manageable if you are just starting out on your homeownership journey.
- No payment during construction. When you buy a home that’s under construction, you’ll need to make payments to the developer at different stages of the construction. This is known as progressive payments. But with HouzKEY, the bank finances these payments so you don’t have to pay them upfront. This can be useful if you are currently forking out for monthly payments or rental for an existing living space while waiting for your new home – with fewer payments, you’ll avoid putting too much strain on your budget.
- Three-month refundable deposit. Instead of a 10% down payment, HouzKEY only requires you to pay a three-month deposit that is refundable after your tenure or when you settle your financing.
- Up to three guarantors. You can list up to three guarantors to improve your chances of getting your application approved as the assessment will be done on a collective basis.
- Easy online application. Applying for HouzKEY is convenient – you can submit your HouzKEY application online through the Maybank2own portal at www.maybank2own.com. There’s no need to bother with physical paperwork either, as you can upload documents digitally.
Still not convinced? Here’s how it compares to a conventional mortgage.
How to apply for HouzKEY
Getting financing through HouzKEY is easy. Here’s how.
So if you’ve been wanting to move into a new home, but have not been able to afford it, HouzKEY could help make your homeownership dream come true. And thanks to low home financing rates and the extension of the Home Ownership Campaign, it’s a good time to consider buying a property.