My First Home Scheme income limit set at RM5,000

The income limit of individual borrowers for My First Home Scheme (SRP) will be increased from RM3,000 to RM5,000 per month effective January 2013.

This enhancement was one of the SRP's eligibility criteria slated for improvement under 2013 Budget announcement last year, Cagamas SRP Bhd said in a statement.

For joint borrowers, it said the income limit has been increased up to RM10,000 per month, subject to the individual borrower's income not exceeding RM5,000 per month.

"In addition, the requirement for a savings record equivalent to three months installment and minimum employment of six months will be abolish," Cagamas SRP said.

It said the scheme allows homebuyers to obtain 100 per cent financing from participating banks, enabling them to own a home without having the need to pay a 10 per cent down payment.

"Cagamas SRP will guarantee the initial 10 per cent of the loan under the scheme," it added.

Cagamas was mandated in 2011 to play an active role of helping young, working Malaysians in the private sector to own their first homes under the SRP.