COVID-19 has left a huge impact on the entire world from the economy to its people. Many have lost their jobs and some of us, our loved ones. This period is not an easy one for anyone and thankfully, the Malaysian government has been coming up with initiatives to help the people of Malaysia. The Bank Moratorium, Bantuan Prihatin Nasional (BPN) initiative, OPR cuts, and most recently, the Home Ownership Campaign (HOC) was introduced to aid the citizens during these rainy days and spur the economy. The ones that are the most beneficial for homebuyers are the OPR cuts and HOC Campaign!

 

Based on the 4th OPR cut that was announced in July, all financing activities based on the Base Lending Rate (BLR) and Base Financing Rate (BFR) was reduced which leaves the OPR at 1.75%! This has been the lowest cut over the past 15 years. Borrowers will benefit because of the low-interest rate as this step is to boost the spending power and help the economy of Malaysia! Essentially, if you take a loan after the OPR decrease, it will cost less because the loan’s interest rate has already been decreased! But keep in mind that when the OPR goes up again, your monthly instalment would also increase. So budget wisely with some breathing room!

 

The Homeownership Campaign (HOC) was also introduced in early June to encourage growth in the property market and families who are in need of a home. This initiative is known to be THE homeownership campaign for all homebuyers as it really helps buyers save money. The HOC initiative is known to offer FREE stamp duty on your loan and Memorandum of Transfer (MOT) for new homes that are under developers who have registered to be part of the HOC initiative. Homes that are bought between June 1, 2020, and May 31, 2021, from RM300,000 to RM1 million, will reap the HOC rewards!

Budget 2021:
When the government announced Budget 2021, every media news outlet was covering it especially since this budget is here to help Malaysia's economy during this time and we're glad to see especially these 2 incentives for first-time homebuyers!

1. Stamp Duty Exemption for First-Time Homebuyers
First-time homebuyers, raise your hands up! You'll be getting an exemption for your stamp duty on your Memorandum of Transfer and Loan Agreement and this incentive runs from 2021 to Dec 2025!

2. 5000 PR1MA Homes Under The Rent-To-Own Scheme
Rent-To-Own is a scheme that allows homebuyers to rent a property for a tenure of up to 5 years, and have the option of purchasing it after their tenure ends. Hence, the government will be building 5000 PR1MA homes only for first-time homebuyers which will go on till 2022.

 Developers' Efforts:
Not only is the government playing their part, but developers are too! Many developers now offer vouchers and packages to help ease homebuyers' pockets. So do a lil diggin' around and do a check with various developers on what they're offering! Compare the offers and choose the home that suits you best.

Now, let's get back to the question: "Is now the right time to buy a home?" Here's our answer.

Opportunities are not known to last forever. As a buyer, we’re all concerned about spending our life’s savings on a home and we will constantly question whether we have made the right decision. Even more so during this period, COVID-19 has left many jobless and those who have kept their jobs and salaries are the lucky ones. If you are one of the few lucky ones, you’ll want to be very wary of how much you’re spending. But with all of these initiatives that are encouraging individuals to buy a home, we can’t help but wonder if the right time to buy a home is now. So how can you know?

 

Basically, with everything going on, you need to weigh out your options. If you are having a steady job with a steady income, the property market is at it’s softest and it is a great time to buy a home, especially if it is for your own stay and if you are a first-time homebuyer. First-time homebuyers may also get 90% loan financing especially if their credit score is good, even 3rd-time homebuyers have the opportunity to acquire 90% with the new regulations.

 

With all of these variables combined with the HOC initiative and the lowest OPR cut, being a first-time homebuyer who is looking to purchase a home during this period is beneficial for you and your pocket! Remember that the right properties that are priced right will be snatched up quickly - so act quickly if you’re sure. Individuals who have lost their jobs and have no spending power versus a comfortable position where you may be able to buy a home at an even lower price are two very different things. We never know what’s coming next and thinking that we have all the time to decide is a false sense of security. So if you have a steady job and income and were already looking towards buying a home, remember to weigh in your options, lifestyle, and know that this may be the best opportunity you might ever get.