I have been giving some emphasize on My First Home Scheme of late as i am sure many out there is interested to know more. At first glance, i thought My First Home Scheme is a perfect scheme to help a person to get their first home because one need not prepare the 10% down payment upon purchasing their first home or property. In short, your home loan will be at 100% even if you are not working with the government.
After a more through study, I guess those interested in getting the My First Home Scheme must do their maths and calculation before committing to this scheme. To clear your some of your doubts, you can read my previous blog post on My First Home Scheme FAQ to clear your doubts.
Simple Maths for those interested on getting My First Home Scheme :-
Monthly Salary: RM3,000.00
Minus: EPF (RM330.00)
Minus: SOCSO (RM5.00)
Minus: Income Tax (RM51.00)
Nett Income: RM(3000.00-330.00-5.00-51.00) = RM2614.00
Just say we purchase a house worth RM200,000.00, Base Lending Rate (BLR) = 6.3%
Housing loan rates, BLR-2.2% = 4.1%
Housing loan repayment, RM966.00
The housing loan will take, 966/2614X100% = 36.95% of your Nett Income
Nett Income – Housing Loan = RM(2614-966) = RM1648.00
Other expenses:-
- Meals: RM400
- Car loan: RM400
- Mobile Phone: RM80
- Entertainment: RM100
- Petrol: RM180
- Tol: RM40
- Rental: RM280
Total Expenses: RM1480
Nett Income – Housing Loan = RM1648.00 (Nett Income I)
Nett Income I – Total expenses = RM168.00
There are some annual or half yearly expenses that you need to look after:-
- Assessment
- Quit Rent
- Property Insurance
- Car Road Tax
- Car Insurance
Other fees upon purchasing a property
- Lawyer Fees
- Stamp duty on SPA (Sales Purchase Agreement)
- Bank loan fee and stamp duty
- Valuer’s fee (if property is not new from developer) for bank loan
Please study the above calculations before taking any further action as your first home might just be a start for your first nightmare. Take consideration on many aspects before any decision is made. Good luck!
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