‘My First Home Scheme’: The maths


Soaring property prices have made it difficult for working Malaysians to afford a home of their own.

Enter the new ‘My First Home Scheme’, introduced by the government. Under the scheme, those below 35 with a monthly income of less than RM3000 may sign up for 100 per cent housing loans repayable over 30 years. But can working Malaysians cope with that repayment schedule?

Blog reader KSL has churned out some figures and discovered what he says is the downside to the loans:

Let’s do simple maths here:

Monthly salary 3,000
Less: EPF (330)
Less: SOCSO (5)
Less: Income tax (51) – single status
Net take home pay 2,614

With 2,614 a month, one will need to carefully budget to take care of the following fixed commitments:

1. Housing loan repayment. Present BLR is 6.30% but lets assume one is able to get a fixed loan at rate of 5.25% for entire 30 years, repayment per month for RM198,000 loan is RM1,093.
2. Cagamas 1st 10% financing. Assume 0% interest over 30 years, repayment per month is RM61.
3. Car loan. Assume a Proton Saga 1.3s RM38,000, 90% financing at 2.58% for 7 years, monthly repayment is RM480.
4. PTPTN loan assume RM10,000 for 10 years, monthly repayment is RM108.
5. Housing loan MRTA (mortgage reducing term assurance) assume borrower is 27 years old, premium is RM4,992 per year, per month is RM416.

Just the above five items, monthly commitment works out to RM2,158! Balance of RM461 from the take home pay!

The balance would have to take care of the following expenses:

1. Daily meals
2. Petrol for the car
3. Astro
4. Mobile phone charges
5. Internet charges
6. Electricity bill
7. Water bill (first 20m3 free in Selangor – THANK YOU!)
8. Indah Water bill
9. Entertainment
10. Essential and non-essential shopping
11. General house maintenance and repairs
12. All the 6% government tax

Further, remember to set aside, if there’s anything left that is, for the following annual/half yearly expenses:

1. Assessment
2. Quit rent
3. Property insurance (fire)
4. Car road tax
5. Car insurance
6. Graduate’s professional association’s membership fee

Let’s not forget the following too upon purchasing a property:

1. Lawyer’s fees
2. Stamp duty on SPA
3. Bank loan fee and stamp duty
4. Valuer’s fee (if property is not new from developer) for bank loan

Is it scary enough? Think carefully before you commit.

What do you think of the above calculation? Is the ‘My First Home Scheme’ the answer to soaring property prices?

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Ameen Hussaini

If this the case, it will be along time for me to buy a house.huh!

Mark Bieber

this is awesome program by govt but the expenses is too much..with the salary..of a fresh grad..maybe if RM3000-4000 he can survive..


Proton is digging its own grave in order to save Lotus?



Someone obviously did not do his/her maths when coming up with the scheme!

Penang Voter

This project (could be) to fatten the pockets of the cronies.

Sincerity and care for the well being of the populace is not subjecting them to such a financial burden.

Has BN ever done anything worth talking about except scandals after scandals?

As for Gerakan K, i think he must learn how to use a calculator, seriously.

Andrew I

Too old for him, lah. Must use egg box RM3.60 for better accuracy.


i think one of the reason for the soaring house price is the recent government loan policy itself. A few years ago, Govt announced 250k loan limit for gov servents and almost immediately after that, all the house price went up to arround the figure. Example, in Kedah and Perlis, most popular houses are sssd and dssd. Price used to be around 150k and 200k respectively when the loan limit was 200k. Now the prices are slightly over 200k and 250 k. The question, who benefits most by thegovt by raising the loan limit? The consumers or the developers? I… Read more »



you lucky “devil”.

here they just raise the service tax. dont know whats next but surely will never see the subsidies that you enjoy. Be good to your country, eh.


Nowadays young people have high expectation.
Most of them are graduates churned out by our the ‘factories’ by our pusat pengajian tinggi umum, and but many may not have a decent job with decent pay yet still want to have good high-end living.

Go back to kampung where housing is affordable.
Do pertanian (pertanian itu bisnes juga).
Then you do not have to complain the high cost of living in the urban area.
We will solve our dependancy for foreign workers if our people can take on lower paying jobs and stay in the rural area.


Sorry ,I just saw a documentary on world famous coral reefs. Malaysia and Indonesia were specially mentioned as the biggest culprits!


Anil, just a thought. Why don’t you write something about our beautiful, but, sick coral reef. Many areas, the corals are bleaching and in a very unhealthy situation, if nothing is done now, we will loose them forever…..
… cronies know only to reap the profits from the tourism trade and have done nothing to study the poor state of affair of the corals and to take the necessary precautions!


You should tell you story to Tourist Minister Ng Yen Yen, who is familiar with Great Barrier Reef given her disputed Aussie PR status.


I think many miss the point as we always tend to think in terms of urban areas in places like KL,Penang, Ipoh, Melaka and JB. There is a bigger country out there than that. There are positives in this Govt backed scheme. Yes, ther are many 90:10 developer and bank sponsored schemes but those earning UNDER $3,000 will not qualify on the basis of earnings and track record for these high-end property projects. Many newly employed and young in M’sia earning about $3,000 monthly still live with their parents and so to a large extent wil be able to afford… Read more »


Smells exactly like the housing Fiasco all over again like in the USA .. SO… who is going to take the rap when if fails? The taxpayers?


Here in Victoria, Australia, the government pays AU$26,500 for first home ownership. Even though I am a “pendatang” (PR holder)who just started to work last 3 months, i am eligible for the grant. And this grant is one off payment to the buyer (no need to pay back).


Too scrary to publish my notice? That is not unexpected for NGO people. Anyway, I 100% respect your publication rights.


gerakan k,

road to HELL is paved with good intentions by the DEVIL.


It is to attract the young voters. It is one of those “feel good” announcements. It does not matter if they come true or not, like those “ETP” projects, “entry-point” investments or other fantastically named projects. The gov’t have done a great job slowly and regularly make such announcements to fool us. Even the opposition are caught unable to make any credible responses. We will be bombarded with more of these. For that ap-co needs to be thanked for all these pr stunt, paid for by us tax-payers.

Kadir Sezairi

I am still renting my house. As I cannot afford a house of my own, I dread to think how my kids are able to won one.

Then a visit to (fast food outlet) gave me a bright spark, and some hope.

I invested almost RM90 for the monopoly-game-imitation… I will get my kids to play it regularly in oder to improve their business acumen so that they will grow up smarter to be able to make the money to buy their own house, hopefully by starting a business with the grant from MARA.


Actually you do not need business acument to be successful so long as you get the financial backing from MARA. This however, does not apply to non-bumis.

What is your problem, Anil?

Just what is your problem, Anil Netto?

When the government doesn’t do anything for the people, you complain.

Now that the government, at least, is doing something , you STILL complain.

Just what is your problem, Anil Netto?

Other than posting one article and the next complaining complaining, what have you actually done for the people, Anil?

Do all of us a favor, Anil Netto.

Do something positive rather than merely complaining, ok?

Phua Kai Lit

Govt propaganda cannot fool the intelligent readers of Anil’s blog.


do not anyhow say anything negative about Anil.

If you are not happy, stick to your utusan or berita harian that is now world-famous with its sick cartoon.


KSL’s calculations are based on a citizen earning RM3000 a month. What about those earning less…say, RM2000…of whom there are many, especially in Sabah and Sarawak? What of them?

This scheme, like so many churned out before by the BN government, appears good at first glance, but harebrained on closer scrutiny.

So, one may ask, what’s the alternative? I would say, purge the rampant corruption and utilise the billions saved to build low cost housing estates for the deserving poor, irrespective of race or religion.


If this immoral UMNO/BN govt is seriously thinking of helping the working class to own a home, they should wave the stamp duty and introdue a First House Ownership Grant equivalent to 3% of the cost of the house…to assist the first house buyer the financial strain.
If this is not done, the buyers of the Govt scheme will simply be made suckers by the UMNO cronies’ establishments related to this scheme….


Rumah semakin mahal. Dulu pinjam duit beli kereta, sekarang kena pinjam lagi? Jangan-jangan beli kopi o pun kena buat kredit lain kali.

Kerajaan BN buat kita keliling pinggang, pinjam sini, pinjam sana pasal barang naik dan kita tak mampu menampung hidup kita.

Baiknya kalau ada ‘buy-election’ di kawasan saya, boleh dapat duit RM100 pakai baju 1Malaysia, ada jugak jamuan makan free dapat lucky draw prizes.


Anil, you must include health/life insurance as well. Nowadays, if you have a criticla illness, waiting for government hospitals to treat you can (further endanger your health).

Mine is currently RM150/month.


Can we take out Astro, settle for the free-to-Air TV programmes, cut down further on entertainment, so as to increase the balance for the essentials?

James Dean

Unfortunately, Astro is a monopoly, so you have no choice if you want to educate yourself by watch high quality programs.


The problem is that the free-to-air TV stations are full of propaganda.

For example, each time before the 5.30pm NTV7 Chinese News, you will be subjected to the 1Malaysia song or 1 Rasa 1 Malaysia without fail.

That’s why Astro is a must, but not Astro Awani.
We need CNN, CCTV, BBC or Al Jazeera for news, not RTM or TV3 or NTV7 buletin.

For enertainment, I settle for Hua Hee Dai and Astro AEC.


The stark realities all these years are: living expenses go up …… no escape for all cost of lands go up …… no escape here cost of building materilas go up …… again no escape for all ……….and getting worse with global situation as it is recently. But the sad reality for Malaysia, all these years, has been: our salaries (national per capita income) have not caught up with the above realities (just compare with S’pore’s) …… we have more or less remained stagnant! Just like those goodies to appease the rakyat to enable us all to buy cars with… Read more »

What is your problem, Anil?

Whenever I hear (or read) people complaining that their salary does not increase, I laugh. I laugh because those who are doing all the complaining are losers. Their only skill in life is complaining. Rather than making themselves better. Rather than devoting more of their time in learning new skills. Rather than educating themselves with more knowledge. Rather than doing all that, they complain, complain, and complain some more. Tell you what … If you hate your job. If you think that your boss isn’t paying your enough. If you think that you deserve much more salary than you are… Read more »

ketuanan komisyen

Gormen servants pay and even their pensions are going up often, at least once between elections. It is the rest that are suffering, essentially with 1970s income. Where are the low-cost houses? Allocated to cronies? Kau tim with (certain) developers?

Keith Rozario

I think the MRTA is supposed to be an MLT. It’s an option rather than mandatory, and if the calculation supposes the applicant is single, MLT is sort of overkill. Just my 2 cents. The other bits make sense to me, but then again earning a salary of Rm3,000 should be the cut-off point. I believe those earning about Rm3000 should no longer be helped by the government. 70% of Malaysian households earn less than Rm3,000 , to go and make such a comprehensive scheme for merely 30% of the population of which only 5% would be interested in is… Read more »