Budget 2012 has proposed to increase the maximum price ceiling for houses under My First Home (MFH) scheme to increase from RM220,000 to RM400,000.

This improved scheme will be made available to house buyers through the joint loans of both husband and wife commencing from 1 January 2012.

Under the current MFH scheme, houses are set to be at the region within RM100,000 to RM220,000 range.

This scheme is opened to private sector employees aged between 18 to 35 years old with monthly salary income of not more than RM3,000.

MFH scheme would made it easier for those who qualify to obtain loans form properties with selling price at RM400,000 and below.

However, those who are earning below RM3,000 and take up loans under this scheme for houses valued at RM400,000 will find themselves in the situation where their disposable income are largely contributed to the housing loan instalments.


Case Study:

If your household income are RM2,800 per month (means you are only income earner in your house & are earning RM2,800 per month or you & your wife are earning income of RM2,800 per month)

After hearing the budget & you feel excited over the news, you decided to buy the condo that next to the unit that you are renting for RM750 now.

The condo is selling at RM350,000.

You have contacted a friend who working in a bank, he has worked out the following calculation if 100% loan is to be given to you in accordance with the My First Home Scheme (MFH):


Loan = RM350,000

Loan tenure: 40 years (You are 30 now, bank thinks you will work until 70)

Loan interest: 4.4% (BLR 6.6%-2.2%)

Monthly repayment: RM1,551 (using home loan calculator in iproperty.com.my :))


You must get ready to pay RM1,551 out of your monthly income RM2,800!

(Oops! Forget about EPF & SOCSO deduction from your monthly income, your net monthly income should be RM2,533, leaving your household net disposable income after paying home loan shall be RM982 ONLY !)

(Oops again! Forget water & electricity, Forget quit rent & assessment, Forget maintanance/management fee, Forget….. list goes on….)


Small note from NBC Group:

It is commonly understood that the basic formula of granting loans was not allow commitment of more than one third of the salary. If loans are going to be approved more easily, households may face a greater financial risk in cases of emergencies due to insufficient savings.

To buy a house is easier now & to get a loan from bank is easier now, however, please do reconsider the monthly repayment & emergencies before making any housing decision.

Buying a dream house within your means is vital for easier life in future.



  1. I have a question, if I’m earning RM4,000 per month, can i apply under this scheme?

  2. Nope, Alex, I think you are not qualified. But I heard from TV2 news that the threshold will be raised to 7k, but not sure whether it is true or not.

  3. RM400,000 for first home with a salary of RM3k and below…this is a joke.They should consider for income earners at least RM5k and below.What happens to mid range earners if they going to stick to $3k and below?Perhaps the rich will get to buy more houses on lelong and continue to be rich.The poor and mid range citizen gets poorer.Let’s be fair to all since the PM has said it is 1 Malaysia and the budget is for the ‘rakyat’.

  4. You got the point here, “Perhaps the rich will get to buy more houses on lelong and continue to be rich.”

    Hope the Government will review the scheme to make it more realistic & effective.

  5. This scheme is actually very good scheme with good intention but it is just not practical at all!

  6. What’s the point if the income limit raised to RM7,000? That’s not for fresh graduate or young gen! That one are for those senior executive or working for many years.

    Let’s not turn away the focus, the purpose of this scheme is to enable the young generation & fresh graduates to own a house!

    But the success of the scheme is largely dependent on the bankers, if they think you are not able to service the loan, then you are gone.

    Agreed to Hashim, this scheme should be reviewed by the Government to make it more practical.

  7. The sun on 19 October 2011:

    Deputy Finance Minister Datuk Donald Lim Siang Chai announced today the government was reviewing the eligibility income limit.

    “We are looking at (raising it to) around RM6,000 to RM7,000,”

  8. how about build affordable property and restricted to only lower income group to buy. more t&c like resale within certain period is not possible and stuff.

  9. This is what government doing now, building more houses in outskirt areas and offer cheaper prices. :)

  10. This domain appears to get a large ammount of visitors. How do you advertise it? It offers a nice unique twist on things. I guess having something useful or substantial to talk about is the most important factor.

  11. I hope when someone help us, it’s really have the intention of helping and not the other way round :|

  12. Is it possible for me and my gf to apply this scheme? Or it is applicable for husband and wife only?
    what would be the BLR rate now?
    We both are earning Rm2.8k, total joint income would be Rm5.6k
    If we were to apply for 100% loan for house valued Rm330k, we still need to come out with approximately 10% for S&P right?

  13. Hi Weijie, great to know you are planning to get your first house.

    Basically, if the house is going to be jointly owned by you & your gf, then you are not qualified under this scheme, due to your joint income is more than RM3k.

    Despite this scheme, you may try to shop around for banks who can offer better margin & terms. If you have maintained a clean records in banks, then you will sometimes receive a surprise from bank. Don’t just listen to any auntie or uncles, friends, go straight to the banks & check it out. Now the bankers are in chasing for good customers.

    It did happen to me where I had better margin offered by bank than what I thought.

    Good luck!

  14. I would like to apply the scheme, how should i go about and who should i contact?

  15. Hi, just checked with bank, it is possible to have a joint income of over 3k, but each party must be 3k and below, say person A’s salary is 2k, and his spouse B’s salary is 1.5k, total is 3.5k which is still eligible. but they must be married, or family related, and both must be first home owners in this application(no previous homes owned)

    @wayne, as nbc.angelina said, you can apply with any participating bank directly.

    Good luck =)

  16. Just want to clarify on the interest BLR rate if apply for MFH scheme, RHB bank told me for this scheme dont have any deduction while the BLR still remain 6.6%, this interest rate is freaking high. Is that true?

  17. @Wayne, banks will try everything to safeguard their interest FIRST before they offer anything else.

    This is how the banks work, they do participate the scheme (since Government requested so), but with some ridiculous conditions (based on your experience).

    As such, you can’t say they never offer the scheme, but is just you can’t take!

    This is how they thought:

    100% loan => high risk, so bank demand higher profit.
    80%-90% loan => lower risk, negotiable on profit by bank. (normally BLR-x%)

    Agreed with angelina & 5alazar, just try other banks who can offer better rates & packages, sure you can find one! Cheers!

  18. Agreed with Sean, the bankers will always try to calculate every move before going for it.

    Most important for us is to keep a clean track records for all money transactions dealing with banks. Bankers prefer to deal with & give high credit scores to those who keep prompt payment records, including credit card & hire purchase records.

  19. So the My 1st Home Scheme is also for married couples? What happens to those who don’t get married and want to buy their 1st property? It doesnt make sense that this scheme is only for married ppl because it is then no difference than the PR1MA project. I think this should be opened to single working professionals starting from a certain age. I am 29 yrs old and would like to purchase a home for myself.

  20. Sorry, Hareena, this scheme is for married couple or family members (brothers & sisters, parents & children).

    You may still check with the bankers for any packages available to you.

    Nowaday the banks are looking for creditable clients, as long as you have kept a good records (especially your credit card prompt payment records, whether only min payment or not), then you can score high in their credit test. You will sometimes be surprised with the offers you received.

    Good luck!

  21. I think the Govt now trying to reduce the burden by income group starting from the low income.

    By the way, it’s quite biased to say this scheme is none-sense.

    I believe with this scheme, the demand for residential below RM 400k will be tremendous. and indirectly, promoting the residential project within such value and developers may find suitable land for such project.

    Plus, take note that if you’re earning below 3k and expect to stay in a condo (while currently apartment), i believe you’re spending more than what you should. there are plenty pangsapuri or apartment around below that max value but yes, out-skrt of KL. but pls understand that the target for this scheme is to migrate those people from wasting their money on rental, to own a house for a family. u can’t expect to pay a house that u purchased at the same commitment as rental. i do not want to waste RM 1000 for rental if i could afford a house for RM 1,500 a month if i’m able to afford it with my husband.

    I don’t see this scheme as lifestyle upgrading mechanism. but rather helping those people to own a house for their retirement life.

    As long as we spend according to our own financial ability. i believe this is a good scheme (better than nothing).

    With our pressure, they will offer this scheme to bigger income group. I believe the max household income will increase to 6k. and this will help the medium income group in the next phase.

    If you’re earning RM3k a month per household. then live within the amount. if you think you can afford a condo worth 400k, then u can afford the 10%.

    Think about those clerk, despatch, technician or layman earning below 2k per month, they’re the one that we must put our focus on, because they couldn’t even afford an apartment worth RM 150k.

  22. Hi Sarah, thank you so much for your comment and if we can have a thumb up button, I will surely put one for you!

    I heard it “was” about to increase the combined max from 3k to 6k, with each not earning more than 3k, but I do not see any conclusive announcement. Hope it will come true soon.

    Hope those who are eligible can enjoy the scheme and wish they can consider their financial positions & abilities before making any decisions in getting their own houses.

    That’s the reason we put on the small note at the end of our article that:

    To buy a house is easier now & to get a loan from bank is easier now. However, please do reconsider the monthly repayment & emergencies before making any housing decision.

    Buying a dream house within your means is vital for easier life in future.

  23. Is it ok if I bought a property under this scheme, but I rent the property out? Thanks

  24. @Isaac, if you can acquire the property under this scheme, then it will be up to you to comply the requirement or not.

    Typically, many people obtained the loan from banks stating that the properties purchased were for own occupation purposes.

    You know what? Quite a number of those properties were indeed held for investment or rental generating purposes.


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