Maybank Islamic’s HouzKEY promotes home ownership
MAYBANK Islamic Bhd’s rent-to-own scheme, HouzKEY, may not quite be the answer to the country’s housing affordability woes – but it provides potential homebuyers with an alternative.
For 34-year old manager Cheong Whye Mun, Maybank Islamic’s rent-to-own scheme offered him the opportunity of avoiding the hassle of physically going out to look for a piece of property that he would want to own.
“Everything could be done with the click of a button. I didn’t have to find time during my busy schedule to go house-hunting. Everything I needed to look out for... I only had to point and click.”
Cheong, a bachelor, says he was very specific in what he was looking for and HouzKEY provided him with that option.
“I’m a pretty structured individual who is very busy... I don’t like to waste time looking everywhere for what I want. If I need something, I just want to go out and get it straight away,” he says.
Under HouzKEY, Cheong was able to purchase his first home in Setia Alam. He says, however, the homes offered under the scheme are “not affordable”.
“I’m paying 100% financing but it’s under a lease structure. The property in Setia Alam costs around RM680,000... But with the legal fees and everything, it comes to around RM700,000. So I would be paying about RM3,700 per month for 30 years.
“However, if under the normal sale-and-purchase scheme where if I were to put down the 10% deposit, the monthly payment would actually be cheaper, making it more affordable.”
Despite the benefits that HouzKEY offers, Cheong says the scheme would most likely appeal to those within the middle-income group.
“At over RM3,000 per month, I would not consider it affordable. To many people, it’s tough.”
For 42-year old web developer, Khairul Anuar Jamlus, HouzKEY helped him own a property without the need to put down a downpayment in advance.
The married father of three sees it as an opportunity to own a home by renowned developer, Eco World Development Group Bhd.
“It’s my first home in Kuala Lumpur. I thought it was interesting that I could buy a house without the need for a downpayment.
Without the scheme, I wouldn’t be able to buy a property like this,” he says.
Khairul says he hopes to some day convert the 30-year lease into a mortgage. He praised the scheme for being “easily accessible”.
“The process of applying for the scheme is quite straight forward. Maybank Islamic made it as simple as possible for the layman,” he says.
Maybank IT personnel from Maybank Shared Services Sdn Bhd, Arfian Abdul Rahman, 45, grew up in Shah Alam.
“In 2003, I bought my first house in Bandar Tasik Puteri Rawang where housing was cheaper and moved there a year later. But I have always thought about having a house in Shah Alam where my parents live,” said Arfian.
“We love to travel and have weekend gateways and we would stay in places where my children would enjoy the pool and other facilities. So I thought it would be nice to have a weekend home in Shah Alam with facilities,” says Arfian.
Both his children, Nur Adlina Arfian, 14 and Adam Danish Arfian, 13, are in boarding school in Sabak Bernam, Selangor.
Arfian bought a two-bedroom 700 sq ft unit for about RM600,000 in Hyde Tower by i-City Bhd. Before opting for this rent-to-buy scheme, he went to the developer’s show gallery to compare the pros and cons between a mortgage and HouzKEY’s rent-to-buy scheme.
“Under a mortgage deal, I have to pay the 10% downpayment. Then I have to buy all the things in the house and this will come to over RM60,000. If I buy the house under the normal way, I will need to have a lot of money.
“Under HouzKEY, the unit is fully furnished and I have to pay the three-month security deposit, which is three months’ rental. People are wondering how to spend less when they want to own a house,” says Arfian, adding that the smaller initial outlay was attractive.
He will be paying rental of RM3,700 a month, which is quite high but he does not mind because the amount will be considered as a downpayment for the unit when he decides to buy over the unit. He would also have locked in the price.
Arfian is giving himself a year to migrate to an outright purchase of the unit. He would then be moving from the HouzKEY scheme to a Maybank mortgage.
How it works
The scheme is an alternative solution via a rental route which requires three months rental deposit.
It currently has 13 developers, with 25 projects in its portfolio. Mah Sing Group Bhd chief executive officer Datuk Ho Hon Sang says the scheme helps those who are having difficulties to come up with the initial downpayment.
“With HouzKEY, they are able to first afford the rent and eventually own the property.”
Under Maybank’s HouzKEY, Mah Sing is offering its Canal Link @ M Residence in Rawang with prices starting from RM949,000.
One of the biggest challenges, especially first-time ones, is the upfront payment. This is minimised with a rent-to-own scheme, he says.
Ho says cashing out is an option. The bank then sells the property to a third party buyer. Customers may introduce a purchaser to Maybank or the bank can assist to identify a suitable third party.