Understanding My First Home Scheme: Income limits and loan calculations

Owning a first home in Malaysia can feel out of reach when you add up the down payment, legal fees, and monthly repayments. The My First Home Scheme (Skim Rumah Pertamaku, SRP) was created to make that journey easier by allowing eligible Malaysians to get up to 110% financing—meaning you don’t need to save the typical 10% down payment.

This guide breaks down the income limits, explains how the scheme works, and walks you through loan calculation examples so you can see if you qualify.

What Is the My First Home Scheme (SRP)?

The SRP was launched in 2011 to help first-time homebuyers purchase a residential property without needing a big upfront deposit. Here’s what makes it stand out:

• 110% financing: Covers the full property price plus insurance and legal fees.
• Property price cap: Up to RM500,000.
• Loan tenure: Maximum of 35 years (subject to age).
• Participating banks: Includes Maybank, CIMB, RHB, BSN, and others.

Income Limits for SRP Applicants

Eligibility depends on your monthly gross income and whether you apply alone or jointly:

Applicant Type	Maximum Income	Maximum Property Value	Financing
Single	RM5,000	RM500,000	Up to 110%
Joint (2 people)	RM10,000	RM500,000	Up to 110%

Key requirements:

• Must be a Malaysian citizen aged 18–35.
• First-time buyer (no existing residential property).
• Must meet the bank’s Debt Service Ratio (DSR) requirement.

Debt Service Ratio (DSR): Why It Matters

Even if your income fits the limit, banks still check whether you can afford the repayments. This is measured by Debt Service Ratio (DSR):

• DSR = (Monthly commitments ÷ Gross income) × 100
• Most banks prefer DSR ≤ 70%.

Example:

• Gross monthly income: RM4,800
• Car loan: RM800
• Proposed home loan repayment: RM1,600

DSR = (RM800 + RM1,600) ÷ RM4,800 × 100 = 50% ✅ Likely approved.

See More:

Loan Calculation Example Under SRP

Let’s say you want to buy a RM400,000 property under the scheme:

1. Loan amount = RM400,000 + 10% (legal + insurance) = RM440,000
2. Interest rate = 4.2% per annum
3. Tenure = 35 years

Approximate monthly repayment: RM2,050

If your income is RM5,000, this puts your DSR at ~41%, which most banks will accept.

Try adjusting these numbers with a mortgage repayment calculator to see different scenarios.

Application Process: Step by Step

1. Check eligibility: Confirm age, income, and first-time buyer status.
2. Choose a property: Must be residential and valued at ≤ RM500,000.
3. Apply through banks: Submit to participating institutions.
4. Prepare documents:
   • NRIC / MyKad
   • Payslips (3–6 months)
   • EPF statement or tax form
   • Employment confirmation letter
5. Loan approval: Bank assesses DSR and credit history.
6. Sign SPA and loan agreement: Covers property transfer and financing.

SEE MORE: Malaysia Debt-to-Income Ratio Calculator

SRP vs Other Housing Schemes

While SRP helps with down payment issues, it’s worth comparing with other government programs like PR1MA or Youth Housing Scheme.

Scheme	Income Range	Property Cap	Financing	Target Group
SRP	≤ RM5,000 (single) / RM10,000 (joint)	RM500,000	Up to 110%	First-time buyers nationwide
PR1MA	RM2,500 – RM15,000	RM500,000	Standard bank loans	Middle-income households
Youth Housing Scheme (YHS)	≤ RM5,000 (single)	RM500,000	Up to 100%	Buyers ≤ 35 years old

FAQs About the My First Home Schem

Q1. Does SRP cover legal fees?
Yes, financing up to 110% can include legal fees and insurance.

Q2. Can self-employed Malaysians apply?
Yes, but you’ll need solid proof of income (tax forms, bank statements).

Q3. What happens if my income exceeds RM5,000?
You won’t qualify as a single applicant, but you may still apply jointly if combined income ≤ RM10,000.

Q4. Does SRP guarantee approval?
No, approval depends on the bank’s credit assessment and DSR.

Q5. How long does approval take?
Typically 1–3 months depending on documentation and bank processing.