What is the price limit for properties under the RTO scheme?

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The property price limit under the Rent-To-Own scheme is RM500,000.

The Rent-To-Own (RTO) financing scheme, announced during Budget 2020, is specifically designed to assist individuals in purchasing their first home. A key component of this scheme is the maximum property price that qualifies, which is set at RM500,000. This initiative aims to address challenges faced by potential homeowners who struggle with the initial 10 per cent deposit requirement and securing financing.
Eligibility for First-Time Homebuyers

The RTO scheme is exclusively available for individuals looking to purchase their first property. This targeted approach ensures that the benefits are directed towards those who have not previously owned a home. The government's intention is to facilitate entry into the property market for a demographic that often faces significant financial hurdles.
Financing Support and Guarantees

Financial institutions are set to provide up to RM10 billion in financing for this RTO scheme. The government will further support this by providing a 30 per cent guarantee, amounting to RM3 billion. This government backing is crucial in de-risking the investment for financial institutions, thereby encouraging their participation and the availability of funds for aspiring homeowners.
Rental Period and Purchase Option

Under the RTO scheme, applicants will rent the property for a period of up to five years. Crucially, after the first year of tenancy, the tenant is granted the option to purchase the house. The purchase price is fixed at the time the tenancy agreement is signed, providing a level of price certainty for the buyer over the rental period.
Stamp Duty Exemptions

To further reduce the financial burden on buyers, the government will offer stamp duty exemptions. These exemptions will apply to the instruments of transfer between the developer and the financial institution, as well as between the financial institution and the buyer participating in the RTO scheme. This measure aims to make the overall cost of acquiring a home more manageable.

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What is the price limit for properties under the RTO scheme?

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