Buying a home is both a significant investment and a major milestone in adulthood. For many, homeownership is seen as a reliable, appreciating asset that offers both personal and financial rewards.
Yet, for many Malaysians—particularly in the B40 and M40 income groups—attaining homeownership remains a daunting challenge amid rising living costs.
According to PropertyGuru's H2 2024 Consumer Sentiment Study, the Malaysian housing market faces significant challenges. 40% of first-time buyers struggle to save for down payments, reflecting the broader effects of inflation, high living costs, and rising interest rates on homeownership prospects. This is in tandem with 2023’s survey, in which about 50% of respondents say they cannot afford to buy a home without government assistance. The respondents often identified high interest rates as a key obstacle, making monthly mortgage payments increasingly difficult.
To address this, Budget 2025, includes significant support for first-time homebuyers to help ease their financial burden. Prospective first-time buyers can explore the schemes below:
Budget 2025: Supporting First-Time Homebuyers
The Housing Credit Guarantee Scheme (SJKP) was announced as a means to give prospective homebuyers with irregular income a guarantee to home financing. Potential homebuyers can identify the house that they want to purchase, prepare and provide supporting documents to show that they are earning an income, and bring the documents to participating financial institutions and apply for house financing under the scheme. The SJKP is expected to help first-time buyers without a fixed income, such as freelancers, independent business owners, and small traders like fishermen and farmers.
The SJKP, with RM12.8 billion allocated next year, aims to support over 57,000 new buyers—particularly those in the B40 and M40 income groups—by easing access to home loans. Since buyers in these groups often struggle with loan approvals due to repayment concerns or lack of financial records, this government-backed guarantee gives banks the confidence to lend, increasing approval rates and potentially accelerating loan processing.
Under the SJKP Madani initiative introduced this year, 14,373 applications for loans worth RM3.14 billion have already been approved. The financing is available to first-time home buyers, including young people without fixed incomes or pay slips, such as those in the gig economy.
Tailored Housing Initiatives and Tax Relief A Welcoming Move
Prime Minister Anwar Ibrahim said first-time homebuyers will get a tax relief of up to RM7,000 for purchasing residential units priced up to RM500,000. For properties priced between RM500,000 and RM750,000, buyers will qualify for a tax relief of up to RM5,000. Compared to previous tax relief measures, such as the stamp duty exemptions for first-time buyers, rent-to-own scheme, or the more targeted assistance for lower-income groups, this new relief seems designed to provide more direct, immediate financial support.
“The tax relief proposed by the Prime Minister during the recent Budget 2025 presentation is a significant step towards making homeownership more accessible. This is expected to encourage homeownership amongst the rakyat, especially those who are on the fence, but already shopping for a residential unit”
“This relief will assist in alleviating the financial burden that new homeowners are often saddled with, allowing them to utilise their funds effectively in other areas for at least the next three years. For UEM Sunrise, it signals a positive alignment with our commitment to delivering attainable and affordable housing options that cater to diverse buyer needs”
“We anticipate this will play a pivotal role in driving market activity, fostering a more inclusive property market, and contributing to the nation’s broader economic goals. At the same time, it will enhance the property industry and economy as a whole,” said Sufian Abdullah, UEM Sunrise Chief Executive Officer.
"Tax relief is a game-changer for aspiring homeowners, especially young families who often find themselves balancing substantial expenses. By reducing the tax burden, this initiative provides much-needed breathing room for families to afford their first home and manage the additional costs that come with ownership—like necessary renovations, maintenance, and insurance. These savings can make a real difference in creating a comfortable, stable environment for their families. It’s about more than just buying a property; it’s about making sustainable, long-term homeownership a reality for Malaysians,” said Batrisyia, 29, from Kota Kinabalu, Sabah.
The initiatives introduced in Budget 2025 mark a significant step towards easing the path to homeownership for first-time buyers in Malaysia. By offering the Housing Credit Guarantee Scheme and tax relief, the government seeks to address key financial barriers that have hindered many Malaysians, particularly those in the B40 and M40 groups, from achieving homeownership. While these measures provide valuable support in managing some of the financial challenges, their long-term impact remains to be determined. The affordability gap between rising property prices and the purchasing power of many prospective buyers, especially in urban areas, still presents a major obstacle. As such, while these initiatives are a positive step, additional measures may be needed to ensure that homeownership remains achievable for a wider segment of the population.
The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.
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