First-time homebuyers should take into practice to find out their debt servicing ratio, their maximum home loan eligibility and what price of homes that they could realistically afford prior to applying for a housing loan to avoid being victims of rejection.

Housing and Local Council Minister Zuraida Kamaruddin has called for the review of housing loan requirements by banks for first-time home buyers, particularly youths, reported New Straits Times.

"I would like to sit with both the Ministry of Finance and Bank Negara Malaysia to look into how they (banks) can relax a bit (the regulation) for first time home buyers, especially youths.”

She noted that the lack of second income, National Higher Education Fund Corporation loan repayments and inadequate spouse income were among the factors hindering loan approvals.

"We also want to take into consideration the financial standing of youths because some of them might not have any money in their bank accounts but they receive financial support from their parents" she said after the launch of GD Development Sdn Bhd's Youth City Tower D in Vision City.

A part of the RM1.3 billion Vision City development, the Youth City project comprises four towers of 3,123 serviced apartment units.

Selangor's "Smart Saver” scheme, which allow young couples to rent state-owned apartments for two to five years, will also be modified and introduced on a national level, said Zuraida.

"After the (rental) period, the state government will return 30 percent of the total rental paid and with that money, the couple can use it as a deposit for a new house under the ‘Rumah Selangorku' housing scheme" she said.

"We want to adapt and modify it (the policy) and see how we can assist youths to buy their first house.”