RHB My1 First Home Loan

A. Skim Rumah Pertamaku

1. What is Skim Rumah Pertamaku (SRP) / My First Home Scheme?

The scheme is one of the measures announced by the Government in the 2011 Budget aimed at assisting
young adults to own a home. The scheme allows homebuyers to obtain 100% financing from financial
institutions, enabling them to own a home without having the need to pay a 10% down payment.

Cagamas SRP Berhad will guarantee the banks on financing above the 90% level i.e. if a borrower obtains
100% financing, Cagamas SRP will guarantee 10% (from 90% to 100%) of the financing.

2. With Cagamas SRP Berhads guarantee, does it mean borrowers under the Scheme are only liable to the
bank for 90% financing only?

No, the borrowers are liable to the bank for the full financing amount (up to 100%). The guarantee only
indemnifies the bank for any loss incurred as a result of financing above the 90% level.

3. Do I have to pay a higher interest/profit rate or any fee to enjoy up to 100% financing under the Scheme?

No, the normal interest/profit rates of the respective banks shall apply and borrowers do not have to pay
for the Cagamas SRP Berhads guarantee.

B. Financing

1. Who is eligible for this Scheme?

This scheme is open to all Malaysian citizens aged 40 years old or less (age next birthday is 41 years old or
less) with gross income of not more than RM5,000 per month for single borrower and gross income of not
more than RM10,000 per month for joint borrowers (based on gross maximum income of RM5,000 per
month per borrower).

2. I am self-employed and my average monthly income is RM2,000. Am I eligible for the Scheme?

No, the scheme is limited to employees in the private sectors only.

3. I am self-employed while my spouse is an employee in a trading company earning RM2,000 per month.
Are we eligible as joint borrowers under the Scheme?

No. Only your spouse is eligible to apply because she is an employee in a private sector. In addition, she has
to meet all other criteria under the scheme.
4. My spouse and I each earn RM2,000 and RM3,000 per month respectively and we wish to obtain 100%
financing to purchase our first home of RM300,000. Would we qualify under the Scheme?

Yes. Under the Scheme, total financing obligations for single or joint borrowers must not be more than 60%
of their combined net monthly income. Assuming existing present total financing obligations (car
instalment + personal loan) is RM1,200. In this case, maximum monthly repayment for the mortgage loan
under SRP should not exceed RM1,410 per month as shown below.

Example of calculation:

Gross combined income : RM2,000 + RM3,000 = RM5,000

Net combined income : RM4,350 (income after statutory deductions i.e. tax, EPF & SOCSO)
60% of RM4,350 = RM2,610 (total financing obligations)
Mortgage loan repayment should not exceed: RM2,610 RM1,200= RM1,410

Based on current interest rates and permitted maximum financing tenor of 35 years (subject to borrowers
age not exceeding 65 years at the end of financing tenure), your maximum eligible financing amount is
about RM294,000.

5. How can I qualify for a 100% financing to purchase a property worth RM400,000?

You may apply for 100% financing through joint borrowers with a combined gross income not exceeding
RM10,000 per month (based on gross maximum income of RM5,000 per month per borrower). Assuming
both borrowers have zero financing obligations at the point of application, loan tenure is 35 years
(provided both borrowers age do not exceed 65 years at the end of financing tenure) and meet all credit
requirements of the bank, the monthly instalment of the loan should not exceed 60% of the combined
monthly net income of the borrowers.

6. My friend and I meet all the criteria. Can we jointly apply for financing under the Scheme?

No, joint borrowers must be family members, i.e. husband and wife or siblings only, and they must all meet
the criteria set.

C. Property

1. Does the Scheme cover completed properties as well as those under development?

Yes, the Scheme covers both completed properties and those under development. The guarantee is
effective upon full disbursement of the financing.

2. My spouse and I would like to buy a property at RM300,000. Will we be entitled to RM300,000 financing
if we meet the income criteria?

Valuation of the property is subject to the participating banks underwriting policy. Generally, banks will
finance based on purchase price or valuation (open market value) from their panel valuer whichever is
lower.
3. My existing financing was taken up for the purchase of my first home. Am I eligible to refinance the loan
under the Scheme?

No, the Scheme does not cover refinancing of an existing loan.

4. Are there any limitations on the type of residential properties or locations under the Scheme?

The type of residential properties and locations are subject to participating banks underwriting policies.

D. Other Questions

1. How do I apply for financing under the Scheme?

Application can be made at any branch of the participating banks.

2. Can I apply for Islamic financing under the Scheme?

Yes, the Scheme covers both conventional and Islamic financing.

3. What is the maximum financing tenure?

The maximum financing tenure is 35 years, subject to borrowers age not exceeding 65 years at the end of
financing tenor and to underwriting policies of the participating banks.

4. Do I need to purchase fire insurance/takaful and Mortgage Reducing Term Assurance (MRTA) / Mortgage
Reducing Term Takaful (MRTT)?

The borrower(s) will have to purchase fire insurance/takaful. However, MRTA/MRTT requirements will
depend on the requirements of the participating banks.