Revive first-home financing scheme, govt urged

The Centre for the Advancement of Community and Housing has called on the Malaysian government to revive the MyDeposit first-home financing scheme in the 2027 budget, scheduled for October 9. MyDeposit, launched in 2016, aimed to assist first-time homebuyers with their downpayments, offering assistance up to 10% of the property price, or RM30,000, whichever was lower.

However, the program ceased operations in 2021. The Centre for the Advancement of Community and Housing (REACH) suggested that the scheme could aid those who can afford monthly loan repayments but find it challenging to save for the upfront deposit. Iskandar Abdul Samad, REACH's chief coordinator and PAS treasurer, pointed out that for a RM300,000 home, a 10% deposit would be RM30,000— a significant sum for many families to accumulate amid the high cost of living.

He proposed the reviving of MyDeposit through a revolving fund model, where the government advances part or all of the deposit, and recipients repay the assistance through interest-free instalments after moving into their homes. These repayments could then be utilized to assist other first-time homebuyers, ensuring the government allocation remains effective for a longer period.

The proposed scheme would target first-time homebuyers, especially those in the low- and middle-income groups, and be limited to affordable homes. The goal is not to provide free homes but to help Malaysians meet the initial barrier to homeownership. Since its inception, MyDeposit has benefited 3,106 first-time housebuyers, with RM86.386 million disbursed.

The housing and local government ministry had previously proposed a similar initiative, Deposit Madani, but it was not allocated funds under the 2025 budget.