7 Steps for First-Time Home Buyer when Purchasing a New Home

September 17, 2021
October 15, 2021

After years of financial planning, you are ready to own your first home! This is definitely an
an exciting thing to celebrate!

Wait a minute, why are you frowning?
“I am clueless on where to start.”

Sounds familiar? To the first-time home buyers out there, you are not alone. With the many
steps that come along with the home purchase, it can be overwhelming to us sometimes. That is why we have prepared the following tips for you! It can make your life much easier when you
are purchasing your new home.

  1. Plan your budget carefully
  • Ensure you have good financial health
  • Allocate a sufficient amount of money for the down payment and monthly installments
  • Upfront Costs consists of down payment, stamp duty on SPA, stamp duty on loanagreement, real estate agent fees, mortgage insurance
  • Audit your finance
  • Have an emergency saving account
  • The saving account should have at least 3-6 months of living expenses
  • Keep your saving in a safe vehicle that brings returns so that you can keep up withinflation
  1. Select a property
  • Make full use of all options available in finding your ideal home in the market
  • For example, getting help from a real estate agent, looking for listings online, or drivingaround neighborhoods that draw your interest
  • Take your future plans into consideration when selecting your first home, for example, if you are thinking of starting a family, you may need a bigger space ora house with more rooms
  • Make sure the house fits your lifestyle
  • For example, if you are a family-oriented person, you may want a home that is closeto your parents
  • Make a list of lifestyle priorities and factor them into your buying decision
  1. Conduct research on the neighborhood
  • Experience the neighborhood yourself
  • A walk in the area of different timing will give you a lot of insights
  • Talk to people who live there
  • If you have friends or family members who live in the area, ask them what they like
  • and dislike about living in the area
  • You will be able to get a lot of related information through a conversation with currentor former residents
  1. Hire a real estate agent
  • A real estate agent will help you find a house that meets your needs and within your
    price range
  • The agent will view the houses together with you and guide you throughout the
    purchase journey
  • They help you in negotiating for the best price after you have chosen a house to buy
  • A well-experienced real estate agent will help you to handle potential issues that you
    may face throughout the process
  • Hire a property agent with a REN tag to avoid yourself being cheated by illegal property
  1. Get a loan
  • Get preapproved for a loan before choosing a house
  • The loan categories offered in Malaysia are divided into three types
  • They are term, semi-flexi and flexi loans
  • Term loans have a fixed repayment schedule
  • Semi-flexi loans allow you to pay extra money in a particular period to lower theamount of interest charged
  • For flexi loans, the installment amount is automatically deducted every month.
  1. Get assistance from housing schemes available

List Of Affordable Housing Schemes In Malaysia

Housing SchemesDescriptionEligibility
My First Home SchemeFinancing up to 110%● First time home buyer only
● Malaysian only
Perumahan Rakyat 1 MalaysiaFinancing up to 110%● Monthly household
income between RM2,500 and RM15,000
BSN MyHomeFinancing up to 100%● Minimum income of RM1,000 per month
Home Ownership Campaign (HOC)Up to full stamp duty exemption● Residential properties only
● Malaysian only
Perumahan Penjawat Awam MalaysiaAffordable housing scheme● For civil servants only

7. Sign Sales Purchase Agreement (SPA), Loan Agreement, and Memorandum of Transfer (MoT)

  • SPA is a legal document which sets out the full terms and conditions of your purchase
  • Get a lawyer involved in the first place as some developers may offer a free SPAdrafting service as a perk, but remember that the lawyer in question is ultimately working with the best interests of the developer in mind
  • Loan agreement is a legal document which sets out the full terms and conditions of your home loan
  • Although the agreement is largely influenced by standard procedures from the bank, it is still a good idea to have your lawyer take a look over it before yu sign
  • MoT is a legal document that transfers ownership in the case of properties with either a Strate Title or an Individual Title
  • For a stratified propert as part of a larger development, you will need to sign a Deed of Assignent instead, which conveys ownership of property that is still under a Master Title


Ready to buy your first home? We are here to help! Enquire us today, our team of experienced consultants will attend to your questions. Here at Hectarworld, we strive to provide you with a hassle-free journey in your home purchase process.

Provide us with your details and our agent will be in touch with you soon!

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