What Is The BSN MyHome Youth Housing Scheme All About?

What Is The BSN MyHome Youth Housing Scheme All About?

Should you be interested to apply for the BSN MyHome, which is a type of youth housing scheme, this guide will walk you through everything you need to know before you sign up for it!
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Everyone has a right to access quality housing. Yet it’s increasingly tricky for young people to access affordable housing when they need it.

That’s where the BSN MyHome (Youth Housing Scheme) comes in. Hurrah!

 

What’s The BSN Youth Housing Scheme All About?

BSN MyHome is a youth housing scheme administered by Bank Simpanan Nasional (BSN), designed to help both single and married youths to take that first important step into property ownership.

Think of it like a little helping hand up to that very first rung on the ladder. It’s essentially social housing support to buy your first home.

The key word here to remember is first home, because if you’ve previously bought a property or have any in your name, you won’t be eligible for this housing scheme.

BSN MyHome Youth Housing Scheme covers properties from RM100,000 up to RM500,000, for eligible applicants aged 21-45.

It was recently announced that the BSN MyHome scheme would be extended until 31 December 2021, allowing even more of Malaysia’s youth to take advantage of the scheme. So get it while you can!

 

How Does The BSN MyHome Youth Housing Scheme Work?

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BSN My Home offers financing for completed, under construction, or sub-sale homes, providing comprehensive support that covers property purchases throughout Malaysia’s housing market.

That means you’re supported to buy everything from an awesome new condo, right up to that cute little second hand bungalow you’ve always had your eye on.

Think of it like a government-backed home loan, with some pretty preferential conditions attached. That’s if the property (and you) meet the eligibility criteria of course!

BSN MyHome Youth Housing Scheme Eligibility

StatusMalaysian citizen
Age21-45 years old
Marital statusSingle or married
Purchase historyFirst-time house buyer
Household incomeUnder RM10,000 per month
Property priceRM100,000 – RM500,000

Eligible parties, it’s time to throw a party! Of course, you also want to check if the financial details actually meet your dream property’s price tag.

If your house is over RM500,000, then sorry, the BSN MyHome Youth Housing Scheme isn’t for you. So, what are the terms and conditions of financing under the scheme?

BSN MyHome Youth Housing Scheme Financing Terms

Margin of financingUp to 100% of purchase price or market price (whichever is lower) from RM100,000 – RM500,000
Stamp duty 100% exemption for the first RM300,000 of the property price
Additional home loan supportRM200 per month credited to customer for first 2 years of house loan
MRTA coverUp to maximum 5% of purchase price or market price (whichever is lower)
Minimum loan period5 years
Maximum loan period35 years
Maximum age at end of loan70 years for employed, 65 years for self-employed
Loan typeSingle or joint
Interest rateRange from +0.6% to +1.0% over the base rate, dependent upon circumstances

 

But Wait, There’s More!

The BSN MyHome Youth Housing Scheme has a lesser-known sibling, the BSN MyHome-i, a Shariah-compliant housing loan that’s based on the Tawarruq contract.

Although the BSN MyHome-i is pretty similar to its more popular sibling, there are 2 different terms and conditions for it.

Eligibility

Single individuals and married couples.

Only married couples.

Mortgage Insurance Coverage

MRTA.

MRTT.

 

What Are The Benefits And Disadvantages Of The Youth Housing Scheme?

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If you’re eligible for the Youth Housing Scheme, it’s a pretty good deal.

First and foremost is the offer of 100% loan cover, with the BSN housing loan offering full financing compared to the 90% maximum home loan value usually offered by banks.

Crucially, that means no need to save up for that (often hefty) 10% down payment. So, let’s take a look at the pros and cons.

Benefits of BSN MyHome

Disadvantages of BSN MyHome

Can access up to 100% loan financing against the value of the property.Property over RM500,000 not covered.
Potentially no need for a downpayment.Only for first-time buyers.
100% stamp duty exemption up to RM300,000.Must have total household income below RM10,000.
RM200 monthly installment support from the government for the first 2 years.Currently has a time limit – with applications ending 31 December 2021.
Up to 5% MRTA financial support.Property cannot be transferred or sold within 5 years.

It’s worth being aware too, that late payment charges will apply if you fail to meet a scheduled payment.

That’s nothing special, as similar conditions will often apply to regular home loans as well.

Late payments are charged at the number of months in arrears x 1% x number of days overdue, all divided by 365 (which is the number of days in the year – obviously).

Even with the moratorium on transferring property, BSN MyHome Youth Housing Scheme is likely to be an excellent deal for any eligible party considering their first home purchase.

 

How Can I Apply For This Scheme?

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As you might have guessed from terms like ‘property financing’ or ‘housing scheme’, there’s a lot of paperwork you need to help you along the way:

  • BSN application form
  • Copy of NRIC
  • Copy of valid marriage certificate
  • Salaried Applicant/Co-applicant (spouse only)
    • Latest copy of 3 months’ salary slip
    • Copy of 3 months’ bank statement
    • Latest 6 months’ bank statement (if any other income)
    • Latest EPF statement
    • Employer Confirmation Letter/HRMIS (Government servant)
    • Side income documents (if any)
  • Self Employed Applicant/Co-applicant (spouse only)
    • Company’s registration (SSM)
    • B/BE Form + LHDN Receipt
    • Company’s Financial Statement
    • 6 months’ company bank statement.
    • Other documents i.e site visit report etc
  • Proof of purchase of property
    • Copy of Property Sale and Purchase Agreement (SPA) which has been stamped
    • If the SPA has not been completed, S&P Draft/Letter of Intent to Purchase/Downpayment Receipt/Proforma Purchase Orders
  • Master/Individual title (if any)
  • Birth certificate (joint application for siblings)

You will also need to be a BSN GIRO/GIRO-i account holder to apply for this housing scheme, as it’ll help smoothen the payment process in the future.

Does all this sound like the right thing for you? Well maybe it’s time to think about applying. You can find the forms and details of how to apply on the BSN website.

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