Hi, do anyone know the idea how the maybank houzkey scheme works?
It does provide the benefits of zero downpayment and monthly rental payment pays off your debt?

Instead of forking out a 10% down payment and additional transactional fees upfront like you would with a traditional mortgage, you only pay a three-month security deposit to secure a property with HouzKEY.

Moreover, the transactional costs (stamp duty, legal fees, etc.) are absorbed into the financing amount and will be part of your monthly repayment. Thus, the initial costs are much lower than the costs associated with a traditional mortgage.

https://www.imoney.my/articles/maybank-houzkey

so, just wondering, how is the bank earning the money?

Hi TS, did you use this scheme?
Btw, anyone else has experience using this and what's the cons of this?
Thanks!

My Houzkey application was approved last year in Sept. I bought 2 storey terrace house in Kajang for about RM500k. After a year the MOT not yet completed. Just recently received phone call from Maybank indicate that I should received S&P next week and house key will be handed over within 3 month.

Can't to own my dream house.

I m interested to get this scheme but would like to learn more of this screme first. I heard the minimum rental is rm2k ++ for rent to own scheme. So many ppl complaint that no one would rent a house for rm2k nowadays... If one can pay rm2k rental every month, they straight away buy a house better... Bla bla and so on.

Wat I understand on this scheme is, let's say you want to stay in a high end house but didn't have so much money to pay the monthly installment amount, say rm3k for monthly installment, you can first choose this rent to own scheme. It only required you to pay rm2k ++ per month for you to stay in high end house.

Also, you are not pay the rm2k ++ for nothing. The house belongs to you since the first day you move into the house. You also can choose to purchase the house after 5years. Maybe you need 5 years time to wait for your salary increments until you afford the Monthly installment amount which is rm3k.

Is my understanding correctly? Please correct me if I was wrong ya. Also, I would like to know let's say we get the 500k loan from bank, will the 500k loan amount deduct the total 5years rental amount we paid or we still need to pay the monthly loan installment based on 500k later?

It will deducted the loan from the amount u pay during so called rental period.

Take conventional loan better
Lower and affordable rate

Maybank Houzkey is totally SCAM. Before sign the agreement, the officer says after 1 year can convert to mortgage without any deposit. Later after 1 year when we asked on this they make a u-turn.

It is scam from day one with cahoots from developers hence you will be just slave to the banks

It is written in their t and c that changes happen anytime without given any prior notice

I think houzkey the actual transaction happens only when you want to convert the house to mortgage, then you own the house. During that time you still have to pay stamp duty and all those cost when you buy a house as per normal.

From what i understand, it will just be like renting the house from maybank, so you pay rental which is lower compared to normal housing loan, i guess? After 1 year of renting, when you opt to purchase, then maybank will convert it to loan as per the SPA price previously signed. So it means the rental you previously pay, will not be offset with the loan amount. That is how maybank earn i suppose..

Also need to take into consideration, its like renting, those major renovation I don't think its allowed (i.e hacking of walls, etc).. unless you want to incur the restoration cost in the event you decide not to buy the property.

according to this site...

HouzKEY is NOT for you if…
1. You want to rent short-term and you only want to rent
2. You own two or more home financing

HouzKEY is THE KEY to homeownership if…
1. You don’t have enough savings for upfront costs
2. You have enough for the upfront costs but want to decrease cash outflow
3. You need guarantors to support your application
4. You are not looking to rent long-term
5. You want to lock in property price and hedge against inflation

Here are your options with HouzKEY:
Option 1: Migrate to mortgage any time after 12 months of renting
Option 2: Cash out any time after 12 months of rental
Option 3: Continue paying rental with 2% step up per annum after 5 years
Option 4: Walk away after 5 years without any obligation

more details...
https://www.imoney.my/articles/maybank-houzkey

PRODUCT DISCLOSURE SHEET
Read this Product Disclosure Sheet before you decide to take the Maybank Islamic HouzKEY. Be sure to also read the general terms and conditions in the Lease Agreement.
Seek clarification from your institution if you do not understand any part of this document or the general terms.
https://sdpcorpsecurestore1.blob.core.windo...mscondition.pdf


This post has been edited by MUM: May 16 2021, 03:15 PM

The Product Disclosure Sheet posted above is outdated (February 2018).

Refer to this for the latest (August 2020).

https://www.maybank2own.com/portal/modules/...%20Customer.pdf

Unfortunately, none of the option are beneficial to Customer.

Option 1 - customer has to get ready cash 10% for deposit according to property value, despite this requirement had not been specified by the officer prior to signing the agreement.
Option 2 - difficult to find buyer for the price as stipulated in the agreement, as such customer has to pay rental until someone willing to pay for that price
Option 3 - at the end of tenancy period, total amount paid to bank is ridicolously high compare to mortgage
Opntion 4 - same to option 2, difficult to find buyer for the price as stipulated in the agreement, as such customer has to pay rental until someone willing to pay for it

what i can only do now is to knock-off the losses with renting the house at higher rate where as possible...at least someone else cover up for your expenses.

This post has been edited by HazriJB: Jun 6 2021, 12:30 PM

For Houzkey, whenever you want to convert to mortgage, you have to pay 10% deposit according to the sale price.
For renovation, you can do it but have to obtain appropriate approval from Maybank.

Not only stamp duty, but you have to pay 10% deposit as well. Let say if the property value indicated in lease agreement is RM500k, it means you have to get ready with RM50k cash upfront + any other incidental cost...

This is the most thing that makes me totally pissed off with Houzkey officer. Totally contradict with their earlier statement before Houzkey application is submitted. Even they didn't tell me on this during signing the lease agreement.

Nevertheless, if you took moratorium during MCO1.0, you have to return all money lump sum. They can't combine it in purchase amount ya.

Yes. When you want to convert to mortagage, you have to go thru normal processing i.e 10% deposit + any other indicental cost. This 10% deposit doesn't specify clearly by Houzkey. They will only tell you once you approach them personally. Because they are not from mortgage team.

On the other scenario, if you want to continue with Houzkey after 5 years of initial tenure, you have to pay RM7 for renewal of S&P etc. This is totally ridicolous.

technically its only renting is it? there is no other benefit because if you opted to buy it is the same with normal term right? or is it me missing somewhere?

Home-to-Own scheme is basically adopting 'leasing' concept. Term 'rent' has been replaced with 'lease'. If you are willing to 'lease' that particular house for let say 30 years, the house at the end belongs to you. But under 'renting', if you stay at the house for 30 years, it is still belongs to the owner.

Ideally, if you manage to get sufficient money probably in year 5 to pay for 10% deposit etc, it's better for you to convert Home-to-Own to traditional mortgage.