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First-Time Home Buyers Rejoice: New Schemes in Budget 2025 Explained

Many Malaysians, particularly in the B40 and M40 income groups, are struggling to achieve homeownership due to rising living costs and spiraling property prices. As expected, the Budget 2025 tabled on 18 Oct 2024 has brought new goodies for first time home buyers. It is aimed to elevate the financial pressures associated with buying a home. The two key initiatives that are currently in effect and approved under Budget 2025 provide crucial support for first-time home buyers. If you are a Malaysian buying home for the first time, check out the below schemes that may be applicable to your new home purchase.

Two New Schemes in Malaysia Budget 2025 for First Time Home Buyers

Malaysia Budget 2025 initiative for first time home buyers

#1 Housing Credit Guarantee Scheme: Easing Access to Home Loans

One of the most significant measures approved in Budget 2025 is the Housing Credit Guarantee Scheme, which has been allocated RM12.8 billion in guarantees. This initiative is set to assist over 57,000 first-time homebuyers by making it easier for them to secure housing loans, especially those in the B40 and M40 income groups​.

Traditionally, home buyers in these income brackets often face difficulties when applying for housing loans due to concerns about their ability to repay or insufficient financial documentation. With this scheme, the government effectively steps in to guarantee loans, making financial institutions more willing to approve housing loans for this segment of the population.

For many Malaysians, this could mean the difference between being stuck in rental cycles and achieving homeownership. The guarantee also ensures that banks have the confidence to provide financing, which could lead to increased approvals and faster processing times.

#2 Tax Relief for First-Time Home Buyers: Reducing Financial Burdens

In addition to facilitating access to loans, Budget 2025 also offers direct financial relief through the Tax Relief for First-Time Homebuyers. First-time buyers can now claim up to RM7,000 in tax relief when purchasing properties priced at RM500,000 or below​.

This tax relief significantly reduces the financial burden during the year of purchase, providing much-needed support for young families or individuals making their first foray into the property market.

This initiative is especially valuable because it provides immediate savings. By reducing the overall tax liability, first-time buyers can retain more of their income for other essential expenses related to homeownership, such as maintenance, renovations, and home insurance.

Benefits of These Initiatives to Home Buyers

If you are planning to buy your first home, these initiatives can make a significant difference in your financial planning. Here’s how:

  • Easier Loan Approval: With the Housing Credit Guarantee Scheme, you will have a better chance of securing a loan, even if you’re in the B40 or M40 group. This removes a major obstacle that many Malaysians face when trying to buy a home.
  • Tax Savings: The tax relief offers first-time buyers a substantial reduction in their financial burden, making homeownership more affordable by reducing their taxable income during the year of purchase.

New Home Buyers Should Act Now!

The measures implemented in Budget 2025 provide tangible benefits for first-time home buyers in Malaysia, particularly those in lower and middle-income groups. If you have been waiting for the right time to buy your first home, now might be the best opportunity. The government’s backing through the Housing Credit Guarantee Scheme and the tax relief are designed to make homeownership more accessible and financially manageable.

With these initiatives already in effect, there’s no reason to delay. Explore the affordable homes options, and take advantage of the support now available to make your dream of owning a home a reality.

If you are looking for new homes to purchase, do consider Gamuda Gardens (in Rawang, located off Exit 115 at North-South Expressway) for landed properties and Bamboo Hills Residences (with 80 meter direct access to Kentonmen MRT station) for high-rise living.

Valeria Garden Homes Type G and Type H
Artist impression of Valeria Garden Homes in Bandar Gamuda Gardens
Bamboo Hills Residences Overview Artist Impression
Artist impression of Bamboo Hills Residences with an 80-meter bridge connecting the development directly to Kentonmen MRT station