There’s an adage that goes as such, “The young of today shall outperform us tomorrow.” True enough, with each passing day, the Malaysian society is graced with the presence of up-and-coming young talents who prove that they are more than capable to step in line and succeed our legacy, wherever we go. Also, we prefer using the term young adults here as opposed to millennials because millennial refers to individuals aged between 25-44, whereas the minimum age range for young adults is little wider, beginning from 21 years old. You’ll see why this matters as we go on.
These days, younglings are often seen helming leadership roles. Some are even holding managerial roles in large corporate companies, owing to their gung-ho, hard work and talents. But that’s another topic on its own and we don’t want to digress too much.
Our point is, today’s millennials are much more ambitious and informed. Perhaps due to the rather competitive and financially harsh environment that we live in now, the younger generation has shown to be actively pursuing long-term financial goals. In fact,a 2020 survey conducted by Standard Chartered Bank showed 45.34% of young adults are actively saving up for major purchases, like a property. This shows just how future-oriented young adults of today are and how big a dream they have.
However, if you’ve been following our property blog for a while now, you would know that buying a home isn’t always a straightforward affair. And while you can be young and be earning a lot or saving aplenty, money is often a secondary factor in homebuying. There are a plethora of criteria that you will have to fulfil beforehand, which are also some necessary evils in buying a home, although we’ve talked a lot about that..
The good news is that numerous banks and financial institutions in Malaysia offer multiple housing schemes to help young adults afford a home, with Skim Perumahan Belia BSN being one of them.
What is Skim Perumahan Belia BSN?
Skim Perumahan Belia BSN, or BSN MyHome is a housing scheme started through the combined efforts of Bank Simpanan Nasional (BSN), EPF (Employee Provident Fund), and CAGAMAS (National Mortgage Corporation of Malaysia) to assist youngsters in buying their first home. The effort primarily targets the middle-income earners, who typically get the shorter end of the stick when it comes to housing schemes. Think SPNB with a bigger outreach.
What makes Skim Perumahan Belia BSN unique?
Compared to the rest of the housing schemes out there, Skim Perumahan Belia BSN has a couple of unique traits that help it stand out a cut above the rest.
Skim Perumahan Belia BSN offers 100% financing to your housing loans,
Registered individuals are given an RM200 subsidy monthly for 24 months,
Flexibility in property types, i.e.: in development, completed, or sub-sale/secondary market properties.
Skim Perumahan Belia BSN: 100% Financing
Most housing schemes or financial aid programs typically require homebuyers to pay a 10% down payment before anything else. Not Skim Perumahan Belia BSN. With this program, your home loan is 100%-backed, meaning you do not fork out a single cent while purchasing your property from the get-go.
This is helpful for both the government and consumers. On one hand, it encourages young adults to purchase property, which in turn allows the government to create job opportunities, stimulate the country’s economy and help solve the issue of property overhang.
On the other, this saves young adults the hassle of forking out a big lump sum to afford their very first home. And allows them to focus on closing costs such as.:
Sale and Purchase Agreement (SPA),
Real estate agent’s commission,
Let’s assume your down payment for a new home amounts to RM30,000, with RM15,000 as your closing cost. Together, they set you back by RM45,000. Under Skim Perumahan Belia BSN however, you only pay RM15,000 during the initial purchase, while the remaining RM30,000 can be returned later. This allows buyers the flexibility to pay their debts in a gradual fashion, as long as it is completed within the stated amount of tenure.
Also, you may be wondering why stamp duties aren’t included within the additional costs. That’s because Skim Perumahan Belia BSN offers stamp duty waivers for the first RM300,000 as part of its perks. Depending on the price of your property, this means you either pay a smaller price for Instrument of Transfer and Instrument on Loan Agreement or nothing at all.
Skim Perumahan Belia BSN: 24-Month RM200 Subsidy Program
At first glance, a RM200 monthly might seem little, since a quick math will show you the total amount accumulated in a year would equate to RM2400, which is the amount most freshies earn in Malaysia monthly. But let it snowball for another year, and you’ll quickly realize it’s quite a sizable amount, RM4800 following its 24-month run.
If you’re looking to save up some extra money following the end of every month, the additional RM200 will come in handy. Essentially, the government hopes to reduce fellow homebuyers’ financial burden during their first two years of homebuying, a financial aid that is much welcomed.
Skim Perumahan Belia BSN: Flexibility in property types
Most housing schemes only cater to a number of property types. For instance, the HOC 2021 campaign offers a suite of perks to help homebuyers purchase their dream home, but the property must fall under a developer’s ownership, meaning sub-sale properties or properties from secondary markets are off-limits.
This, however, does not apply to Skim Perumahan Belia BSN. With Skim Perumahan Belia BSN, buyers have a bigger leeway with property types. And this is crucial because the property that you purchase will determine the number of additional costs (barring legal instruments) you will tank in the near future.
Skim Perumahan Belia BSN allows individuals to purchase homes from the following categories.
Sub sale/Secondary market properties, or purchasing your home from another seller.
This flexibility means individuals can opt for a myriad of property depending on their personal preference. For example, those opting for a sub sale property will have an easier time managing their housing loans, because they’ve done away with the additional costs that come along with an in-development or completed property, like:
Home moving services.
At its core, Skim Perumahan Belia BSN is designed to help young adults save costs during the homebuying process, as this would encourage young Malaysians to purchase their very first home. In turn, this helps grow the economy. A win-win situation.
Also, Skim Perumahan Belia BSN is slated torun from 1 Jan 2020 to 31 Dec 2021. While there is a lot of time for one to register for the scheme, we do have to point out that it runs on a first-come, first-serve basis due to their limited slots. Therefore, applicants should apply for the scheme as soon as possible.
Skim Perumahan Belia BSN T&Cs
As with any other housing schemes out there, Skim Perumahan Belia BSN comes with a standard set of terms and conditions that individuals have to meet before qualifying for the scheme.
Be of Malaysian nationality
Aged between 21- 45 years old (hence, the words young adults and not millennials)
Additionally, applicants must not exceed 70 years old by the end of the tenure
Skim Perumahan Belia BSN’s tenure goes up to 35 years max, with a maximum age cap of 70 years old nearing the end of tenure. For self-employed applicants, the age range is lowered to 65 years old instead
The maximum age cap means you should not be above the age of 65 or 70 years old nearing the end of your tenure. Assume you’re currently 35 years old, and your housing loan is set to last for 35 years, this means you’ll have to pay off your loan no later than 70 years old, or BSN will automatically reject your quest for a housing loan
On another note, self-employed individuals are required to provide several additional documents when signing up for Skim Perumahan Belia BSN (see below)
Applicants must possess a regular and consistent income
Household income <RM10,000 monthly
This includes allowances, bonuses, commissions, overtime and every other payable benefit offered by one’s employer
Single and married couples
Married applicants can also opt for Skim Perumahan Belia BSN MyHome-I instead (see below for further explanation),
Holds proof of property purchase aka own a property
Property price must fall between the range of RM100,000 – RM500,000 only
Can be individual/joint applicant
Holds a BSN GIRO/GIRO-i account
Interest rate is BSN’s Base Rate (BR) + (0.60% – 1%), depending on the range of property prices
Company’s bank statement dated to the latest 6 months
We’ve also provided an infographic below for your reference.
Picture courtesy of BSN.
Skim Perumahan Belia BSN: Payment packages
Say you’ve signed up for Skim Perumahan Belia BSN today, and you’re not entirely sure if 35 years of tenure is sufficient to pay off your housing loans. Perhaps you’re trying to err on the side of caution and prepare for rainier days. That’s perfectly understandable. In this case. BSN offers two forms of packages to help you better manage your housing loans.
Second Charge Package (applicable to government servants only)
2 Generations Package
Second Charge Package
Second Charge Package is a financing option exclusive to government servants only. In layman terms, it provides additional financing to government servants registered under Skim Perumahan Belia BSN if the current loan amount is insufficient.
2 Generations Package
As its name implies,2 Generations Package is a joint financing option consisting of two parties – the parents and their children. This package is open to all Malaysians, though it does come with a couple of conditions.
The children must be aged 21 and above and enrolled in a learning institution
Parents must have demonstrated up to 5 years’ worth of steady income
Children must be pursuing a diploma program minimally and are slated to graduate in 3 years’ time
Skim Perumahan Belia BSN MyHome-i: A sister program
Under the Skim Perumahan Belia BSN terms and condition section, we briefly talked about Skim Perumahan Belia BSN MyHome-i, which is exclusive to married couples. There are two factors that make this scheme distinctive from Skim Perumahan Belia.
It is grouped under Islamic Financing, and thus considered Shariah-compliant
Shariah-compliant states that any money made or obtained to/from the housing loan is lawful, as dictated by the Islamic principles
Difference in the mortgage insurance coverage offered
Skim Perumahan Belia BSN → MRTA
Skim Perumahan Belia BSN MyHome-i → MLTA
We’ve covered the differences in mortgage insurances previously in thisarticle, so we’ll give you the 411.
For those opting for MRTA, the amount insured will decrease over time, meaning the amount paid to the bank in the events of your death may or may not be sufficient enough to cover the bulk of your housing loan. The good news is MRTA is much more affordable compared to MLTA.
For those opting for MLTA however, the amount insured remains consistent over time. If anything untoward were to happen to you, you will be cleared of any outstanding debts relating to the housing loan, and your next-of-kin will be provided with a certain amount of cash as a means for them to weather through your absence. The downside to this is MLTA is much more expensive to commit to.
At the end of the day, the decision to go for MRTA or MLTA fundamentally falls to your age and personal circumstances.
Skim Perumahan Belia BSN: The miscellaneous
While Skim Perumahan Belia BSN is certainly a catch for young adults wishing to own their very first property, they need to be aware of one caveat that comes along with the scheme.
Just like any other banks or financial institutions out there, BSN charges a late payment fee if you are unable to pay your housing loans punctually, the amount charged is calculated in the following formula:
Just thought we would put it out there as a reminder for you to always manage your finances prudently!
Skim Perumahan Belia BSN is a great way for young adults to purchase their very first home. Given the perks and benefits that the scheme offers, it would be a shame for individuals to not capitalize on it. Though as with any other housing schemes offered out there, one would do well to do their due diligence before happily waltzing off to register for the program.
How can I qualify for Skim Perumahan Belia BSN?
There are numerous criteria you must meet in order to qualify for Skim Perumahan Belia BSN, though here are some you should take extra note of:
Aged between 21 – 45 years old
Ensure that your age does not exceed 70 nearing the end of the tenure
For self-employed individuals, the age is lowered to 65
Property value must fall between the ranges of RM100,000 – RM500,000
Be first time homebuyers
Household income <RM10,000
Holds proof of property purchase, or that you own a property
Holds a BSN GIRO/GIRO-i account
How is Skim Peruhaman Belia BSN different from the rest of the housing schemes?
Skim Perumahan Belia BSN’s primary target audience are young adults looking to own their first home yet lack the financial capabilities to do so. Some of the scheme’s most unique perks are:
RM200 monthly subsidy for 24 months
Flexibility in property types i.e.: subsale property
What are some of the documents that I will require when applying for Skim Perumahan Belia BSN?
In order to sign up for the program, you will require the following documents:
A copy of applicant’s NRIC (individual/joint applicant)
Latest 3 months pay slips, both original and copied versions
Latest 3 months bank statement
Latest 6 months bank statement (other incomes)
Latest EPF statement
Letter of employment
J Form/Latest Income Tax declaration
Copy of SPA
Copy of Evaluation Report from panel valuer with registered banks
For self-employed individuals, BSN will require these additional documents for processing purposes.
Company’s registration (SSM)
Company’s financial statement
Company’s bank statement dated to the latest 6 months
I’m worried that I may not be able to pay off my housing loan by the end of my tenure, what can I do?
If you think the timeframe given to pay off your tenure might be too short, rest assured, BSN offers two following flexible payment options for you to overcome that.
Second Charges Package (applicable to government servants only)
2 Generations Packages
For additional information on the two packages offered, please refer to the article above.
It says here in the article that there are two types of schemes offered, Skim Perumahan Belia BSN and Skim Perumahan Belia MyHome-i, how are they different from one another?
Skim Perumahan Belia BSN and Skim Perumahan Belia MyHome-i differ in the mortgage insurance offered.
Skim Perumahan Belia BSN offers MRTA while Skim Perumahan Belia MyHome-i offers MLTA instead. Both fundamentally offer insurance protection to homebuyers, though their perks differ greatly, so it all boils down to personal preferences.
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