Rent-to-Own Scheme



Groot has been renting a room since he started doing free-lance works at the age of 18 years old around 6 years ago. He has signed up for Perbadanan 1Malaysia People’s Housing Programme (PR1MA) but failed to secure any financing loan due to non-permanent job. Devastated with the financiers’ rejection, he felt that there is no other ways for him to own a home. Is that true?


Earlier on 9 September 2014, our Prime Minister has launched the new Rent-to-Own (RTO) Scheme which he claimed to help applicants under PR1MA who are rejected by the banks, such as those without permanent jobs or a bad track record. Subsequently, the Scheme was also proposed in Budget 2015. The Scheme will be offered to homebuyers under PR1MA project who had applied to at least three (3) banks such as Groot. The Government plans to team up with the banks and offer a 20 to 30 year rent to own option to them whereby at the end of the RTO period, the house will become theirs. However, Groot has to wait as the Scheme is yet to be implemented pending the announcement by the relevant stakeholders (Government, PR1MA and banks etc).

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