A Guide To Purchasing Your New Home In Sarawak

As the saying goes: the home is where the heart is. Purchasing your new home need not be as daunting as it sounds. We have compiled the following information to guide you through the processes of buying your home in Sarawak, so that you can own a home of your dreams!

Before you dive into a home search, you need to find out whether your income and savings are sufficient to buy one, after taking into account your other financial commitments.

Although you may intend to secure financing for your purchase, there is still a need to provide a lump sum equal to 10% of the total price of the property as an upfront payment – for most, this upfront payment can come from your savings, income, or a combination of both. Do also remember to take into account additional costs such as stamp duty and other miscellaneous legal fees.

Once you have done these, you can then gauge the price and type of property you can afford.

Do reach us for more information, and we will be able to guide you on these matters.

This is an exciting moment for you! Whether you are looking for a landed property, condominium, or apartment, the most important factor is LOCATION.

There are also other factors which can affect the value of property in Malaysia such as the overall neighbourhood, local economic conditions, public transportation, size of the property, the level of privacy offered by the property, facilities within the development and its surrounds, reputation of the developer, and even cultural beliefs such as ‘feng shui’ considerations.

Do also check out the sales packages which developers may offer, such as interior design customisation packages, furnishing packages, or other interesting offers.

Remember: price and value for your money are two different things.

With our developments situated within the key growth areas in Kuching, Miri, and Bintulu, you will be spoilt for choice – don’t hesitate to talk to us!

For most, you would need to secure financing before proceeding with your purchase. There are a few financing options available:

Commercial banks:

All banks will rely on your CCRIS Report and CTOS Score to assess your suitability for a bank loan.

The Central Credit Reference Information System (CCRIS) is a system created by Bank Negara Malaysia’s Credit Bureau to provide standardised credit reports on a potential borrower. This report would enable banks and lenders to assess the creditworthiness of a potential borrower by referring to a recorded financial history.

Meanwhile, CTOS is Malaysia’s leading credit rating agency and is responsible for reporting on the financial health of individuals and businesses. The report generated by CTOS would contain your credit history, which includes information such as payment history, outstanding amounts owed, credit mix, new credit, and the length of your credit history.

A combination of these reports will facilitate the bank’s decision making process.

Besides these, you need to ensure that you do not too many debts, as these debts will affect your Debt Service Ratio (DSR) – this is a method which banks use to assess whether or not you can afford the loan you are applying for.

Do check out the loan packages offered by different banks and do a comparison – we are also able to guide your through this process.

Federal loans (LPPSA or Lembaga Pembiayaan Perumahan Sektor Awam)

LPPSA is a statutory body tasked with administering among others, the housing loans for civil servants working with federal bodies in Malaysia. Such loans can be available for single or joint applicants but are subject to various terms and conditions set forth by LPPSA.

For more information about these loans, please visit http://www.lppsa.gov.my or talk to us.

Borneo Housing Mortgage Finance Bhd (Borneo Housing)

Borneo Housing Mortgage Finance Bhd is the principal agent appointed by the State Government of Sabah and Sarawak to provide housing financing for civil servants in the two States, including employees of Government agencies and statutory bodies.

Private sector employees can also apply for housing loans with Borneo Housing.

For more information, please visit http://bhmfb.my/about/ or talk to us.

Employees Provident Fund (EPF)

Those who contribute to EPF can withdraw from Account 2 to finance the purchase of a home, subject to various terms and conditions. This means it is available for Malaysians or non-Malaysians, and applicable for home purchasers from developers in Malaysia.

For more information about such withdrawals, please visit https://www.kwsp.gov.my/en/member/withdrawals/partial/buy-home or talk to us.

Special housing schemes for first time home purchasers

For first time home purchasers, there are specific home ownership schemes available namely:

  • • Skim Rumah Pertamaku/My First Home Scheme – a scheme to assist young adults earning RM5,000 or less per month to own a home
  • • Youth Housing Scheme by Bank Simpanan Nasional – a special scheme tailored for Malaysian youths to obtain mortgage financing facilities

If you are a prospective first time home purchaser, do talk to us about these schemes!

From time to time, the Government may introduce various home ownership packages which can facilitate greater savings.

Do find out about the Home Ownership Campaign (HOC) 2020 which is valid for home purchases between 1 June 2020 to 31 May 2021 and involves the following:

  • • Stamp duty exemption on the instruments of transfer and loan agreement for the purchase of residential homes priced between RM300,000 to RM2.5 million (subject to at least 10% discount provided by the developer).
  • • The exemption on the instrument of transfer is limited to the first RM1 million of the property price, while full stamp duty exemption is given on loan agreement

Do talk to us about the HOC!

Once you are sure about your level of affordability, have picked your property, and made a decision on your financing option, it is now time to make a booking for your desired property.

To do this, most developers would require you to execute a ‘Booking Form’ and pay the relevant fee (which forms part of the 10% of the upfront payment mentioned previously) – the ‘Booking Form’ would also set out the date by which the Sale and Purchase Agreement (SPA) would need to be signed.

At Naim, we endeavour to assist our purchasers in relation to such legal documents, including liaising with law firms and other paperwork to ensure a ‘fuss-free’ experience!

Once all are in order, you would need to execute the SPA and the loan agreement with the financing institution.

The SPA is an important legal document which sets out all the terms and conditions of your purchase, while the loan agreement sets out the terms and conditions of your home loan. Do spend some time to study these agreements prior to execution.

Once the SPA is signed, you would need to pay the remaining share of the 10% upfront payment mentioned previously, and ensure that your home loan payment is transferred. You will also need to cover the relevant stamping fees and legal fees required.

Once construction works for your property have been completed and before you can move into your new home, the property must have obtained the Occupation Permit (OP) from Sarawak’s local authorities. The OP is a legally required document issued by the local authorities to verify that your new home is safe and fit for occupation.

Upon the issuance of the OP, the developer will issue a Notice of Delivery of Vacant Possession to advise that your new home is ready for moving in.

MoT is a legal document which transfers ownership of properties with either a Strata Title or an Individual Title. Although some developers would require the MoT to be executed in advance, Naim requires the MoT to be executed upon the issuance of title to the property.

As such, once the title of your property is available, our office would get in touch with you for the execution of the MoT.