Budget 2025 has brought a wave of relief for first-time home buyers in Malaysia with the introduction of two schemes aimed at easing the process of securing a home. These new measures provide substantial financial assistance and incentives, making it easier for Malaysians to purchase their first property. Let’s dive into these new initiatives!
Budget 2025 Unveil Two Schemes for First Time Home Buyers
Housing Credit Guarantee Scheme
One of the major highlights of Budget 2025 is the Housing Credit Guarantee Scheme, which offers RM12.8 billion in government-backed guarantees. This scheme is designed to support more than 57,000 first-time homebuyers by making it easier to secure housing loans, particularly for those in the B40 and M40 income groups.
The guarantee removes a significant barrier for many Malaysians who might otherwise struggle to get a loan due to insufficient credit history or other financial concerns. With this initiative, banks are more likely to approve loans, thereby helping more people achieve homeownership.
Tax Relief for First-Time Homebuyers
In addition to the housing guarantee scheme, first-time buyers can also enjoy tax relief of up to RM7,000. This is applicable to purchases of properties priced at RM500,000 or below. The tax relief aims to reduce the financial burden on new homeowners, making homeownership more affordable by cutting down on their yearly tax liabilities.
This initiative offers an immediate benefit, providing substantial savings during the year of purchase, which can help with other associated costs like legal fees, renovations, or furnishings.
What This Means for First Time Home Buyers
For prospective buyers, these measures significantly reduce the financial strain typically associated with buying a home. Whether you’re struggling with loan approval or are looking for ways to save money on your first property purchase, these initiatives can provide a much-needed boost. Do note that this is for first time homebuyers only.
- Better Loan Accessibility: Thanks to the housing guarantee scheme, you now have a higher chance of getting your loan approved, especially if you are part of the B40 or M40 income groups.
- Reduced Financial Burden: The tax relief provides immediate savings, making it easier for first-time buyers to manage other expenses related to buying a home.
Looking Ahead
While there are other proposed schemes, such as the Madani Deposit Scheme, which is a RM30,000 in financial assistance for down payments, this particular initiative is still pending approval and were not tabled during the Budget 2025. However, the above two mentioned schemes already in effect provide a strong foundation for first-time homebuyers to take advantage of the current property market and move toward securing their dream home.