The Federal Government is set to launch a new residential property financing initiative called ‘i-Biaya’ this Thursday (14 April 2022) which will review the existing housing financial model in our country. With i-Biaya, new methods will be used to determine loan applicants’ eligibility, including their credit or digital footprint.
The initiative, part of the Malaysian Family Homeownership Programme (HOPE) seeks to improve home ownership among the B40 and M40 income groups in our country. Currently, many potential buyers could not own a house despite having a steady income due to them working in the gig economy sector or are self-employed, such as petty traders with no payslip.
As reported by NST, Housing and Local Government Ministry (KPKT) deputy secretary-general Datuk Azhar Ahmad said that it is hoped that i-Biaya can help secure housing loans for applicants. As such, this would also help achieve the government’s target of 500,000 affordable housing units set under the 12th Malaysia Plan.
Under i-Biaya, there are several house financing schemes including the existing My First Home Scheme under Cagamas SRP Bhd and Syarikat Jaminan Kredit Perumahan. Both of which allows 100% and up to 110% loan for Malaysian first home buyers.
Now, the initiative will add another scheme, which is the new Rent-to Own (RTO) scheme under PR1MA Corporation Malaysia. Under the RTO scheme, occupants could opt to buy the units they live in after 5 years. Moreover, the monthly rental rates that would differ depending on the house prices, which go up to RM300,000.
All three of these schemes will also have a more lenient financing application eligibility. The National Affordable Housing Council (MPMMN), chaired by the Prime Minister Datuk Seri Ismail Sabri Yaakob will be determining these new lenient requirements, including the usage of digital footprint instead of payslip.
Besides i-Biaya, HOPE comprises of another 3 components which are housing providers involving federal and state governments and private developers, public awareness and policies. KPKT Minister Datuk Seri Reezal Merican Naina Merican and Finance Minister Senator Tengku Datuk Seri Zafrul Abdul Aziz are expected to launch i-Biaya this Thursday.
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