The HOC ( Home Ownership Campaign ) 2020, ALL YOU NEED TO KNOW !

A lot may have probably heard about the Home Ownership Campaign (HOC), which was launched in January 2019, and ended on 31st December of the same year.

However, due to the COVID-19 pandemic and the subsequent Movement Control Order (MCO), the Malaysian economy took a heavy hit across all sectors.

In order to "support businesses and strengthen the nation’s economy", the Prime Minister introduced the Short-Term Economic Recovery Plan (PENJANA) during his speech on 5th June 2020.

Among the many initiatives that were presented, the reintroduction of HOC 2020 was one of them! Without further ado, let's take a closer look at this scheme meant to benefit home buyers everywhere.

What are the benefits of the Home Ownership Campaign 2020?

The HOC this time around carries the same set of benefits as previously, notably:

1. Stamp duty exemption on the instruments of transfer and loan agreement for the purchase of residential homes priced between RM300,000 to RM2.5 million (subject to at least 10% discount provided by the developer).
2. The exemption on the instrument of transfer is limited to the first RM1 million of the property price, while full stamp duty exemption is given on loan agreement effective for Sales and Purchase Agreements (SPA) signed between 1st June 2020 to 31st May 2021. 

Let's say you bought a property at RM400,000...

1. Without HOC, you'd have paid:

   Down Payment (RM400,000 x 10%)	RM40,000
   Stamp Duty Loan (RM360,000 x 0.5%)	RM1,800
   Stamp Duty MOT (100,000 x 1% + 300,000 x 2%)	RM7,000
   Monthly Repayment (3.5% @ 35 years loan, 90% of purchase price)	RM1,487.85
   Total Cost	RM50,287.85

   With HOC, you'd only pay: 

   *Down Payment [(RM400,000 x 90%) x 10%]	RM36,000
   Stamp Duty Loan	RM0
   Stamp Duty MOT	RM0
   Monthly Repayment (3.5% @ 35 years loan, 90% of purchase price)	RM1,339.06
   Total Cost	RM37,339.06

   *As properties under HOC is entitled to a minimum 10% discount, thus the new property price under HOC is RM400,000 x 90% (10% off). 

Who was eligible for the Home Ownership Campaign?

Unlike many of Malaysia’s restrictive affordable housing schemes which come with stringent rules in place, the Home Ownership Campaign had relatively relaxed criteria in a bid to encourage growth in property buying.

• Registered properties: Eligibility only applies to those registered properties listed by developers within the scheme.
• Residential purposes: Purchasers must be buying the property for the purpose of residing within it only.
• Malaysian citizens: Purchasers and co-purchasers must be Malaysian citizens.
• 1 June 2020 to 31 May 2021: To be eligible for the exemptions and discount, a Sales and Purchase Agreement (SPA) must be stamped between 1 June 2020 and 31 May 2021.

*credits to and source from PropertyGuru ( 5.6.2020 )