We have often dreamt of having our own place as it marks our independence and life’s achievement. Not to mention the freedom we’ll have that comes with owning your own home. Say goodbye to nagging and dirty roommates, and hello to painting your walls sunshine yellow just because you can. But buying a home isn’t as easy as it sounds. Most of the time, we’re all stuck in a renting situation that locks us in the hands and mercy of our (not that great of a) landlord until we move out. But thankfully, someone has heard our pleas to heaven and Maybank has come up with a homeownership scheme that lets you test drive a house just like how you would do with a car! Sounds like a dream, ain’t it? So let’s get down to the details.

Enter in HouzKEY. It is a financing solution or a homeownership plan that gives you more flexibility and cash flow efficiency. It is specially designed to assist individuals who want to be homeowners but are unable to due to the high initial cost. What HouzKEY allows you to do is rent your dream home for up to 5 years with a minimal upfront fee. If down the line you want to make this home legally yours, then you can buy it with a mortgage loan on the locked price that was agreed on in the beginning! With rental rates increasing after the first and second year depending on your landlord, HouzKEY offers a fixed rental rate so that you can plan your finances in advance especially if you’re planning for something big! Moreover, there's an extra win because the value of homes appreciates, so you stand to gain a profit for it if you decide to sell it off.

After all, Investment 101 states that you should always sell higher to gain a profit. So during this 5-year period, you can now take the time to look for investment opportunities with your savings! While the Rent-To-Own scheme may seem like an interesting concept for us Malaysians, this scheme has actually been carried out in the United States by the Home Partners Of America.

What HouzKEY offers:

So HouzKey has been around for some time, but this scheme has recently been revised with further available incentives and assistance to homebuyers. Are these new revisions totally worth it? Yes, Myra thinks so! ;)  So here’s what you’ll be able to enjoy: 

100% financing (+5%)!

• The 5% is to cover the MOT (Memorandum of Transfer) if it is not absorbed by the developer or any government initiatives like the Home Ownership Campaign (HOC). You also won’t need to pay the usual 10% downpayment that’s required. Just the 3-months refundable deposit!

0 payment during construction!

• Now when you buy a house from a developer that’s under construction, you’ll need to pay a little something called Progressive Interest. (Read all about it here!) The reason why you’ll need to pay your progressive interest every month is that, with every milestone your developer accomplishes, the bank will release part of your loan to the developer. The progressive interest is the % of the amount your bank releases! But that’s another story for another day. Let’s carry on with the other goodies HouzKEY is offering!

The LOWEST monthly payment for the first 5 years under HouzKEY

• as compared to a normal mortgage loan! Additionally, to help homebuyers just a lil bit more, homebuyers will be able to withdraw their EPF Account 2 to chip in for a portion of their monthly loan payment. Bumiputera homebuyers too will be eligible for the Bumi discount on homes! Let me give you an example because one of Myra’s projects, Myra Saujana, is part of the HouzKEY scheme! 

What’s There To Fork Out

Now, forking out our life’s savings for the 10% down-payment for your home can feel like a soul-crushing thing. We can say goodbye to our holiday plans to travel to Japan or Korea with our friends for the next 5 years (I’m exaggerating a little). But we all know that saving up for that 10% is going to take a while since being an adult means funding your own cost of living and paying off other commitments such as your car or current rental fee. With HouzKEY, you would need to only fork out for the 3-months security deposit that is refundable after your tenure. Additionally, during the construction stage of your chosen home, there will be no need to pay for the construction progress (yay!) as the fees for it will be parked under your rental. So the time you start to pay is when you move into that spanking new home.

Is It A Little Too Good To Be True?

Maybe. While this homeownership scheme sounds pretty great, there are a few cons that come with it. Firstly, if you decide to buy the house at the end of your tenure, the rental fees that you have been paying for the last 5 years will not be going into your home’s purchase price. Moreover, you’ll be tied in with Maybank for the whole 5 years. Leaving them before the end of your tenure is a big no-no as you’ll still be required to pay the full rental amount of 5 years. Talk about being in a sticky relationship.. 

So, the big question is: Do you have what it takes to be a HouzKEY applicant?

There are 3 main criterias to being eligible for the HouzKEY scheme.

• You’ll need to be a Malaysian citizen at the legal age of 18 to 70 years old.
• Your household income needs to be RM5,000 and above or, if you earn less than RM5,000, you can include up to 3 guarantors who need to be your immediate family members to increase your eligibility to own a HouzKEY home.
• You can only own only one HouzKEY unit at a time.

Now, that doesn’t sound difficult, does it?

So how you can get your hands on a HouzKEY home is to provide the usual standard documents that Maybank will request from you as according to their website at https://www.maybank2own.com/portal/ . One significant difference is that the entire process will not be as strict as what you’d experience in trying to land a usual mortgage loan. HouzKEY will not be doing a CCRIS check on your credit history but will look at your monthly payslip instead.

Nonetheless, having a good credit report will help you in the long run especially if you decide to buy the HouzKEY unit by the end of your tenure. Not too sure how or what you should do to get that A++ credit record? Then head over to this CGPA blog post to find out more.

Overall, whether you decided to be a part of or not be a part of the HouzKEY scheme, it still is a big decision to make in your life. Weigh your options and your lifestyle, alongside the pros and cons that I’ve just shared with you. Don’t forget to talk to your loved ones about it too! And if you ever need more advice or information, you can hit me up.