Yes, first time house buyer can get 100% loan for properties up to RM400,000 provided your income is RM3,000 and below.
The reason why you need to pay 10% is because it is expected by the Seller of the property and commonly practiced in the real estate market.
Also under the law of contract like a Sale & Purchase Agreement, not only terms must be mutually agreed but money (not necessarily 10%) must change hands from buyer to seller to be legally binding.
The way to work round it is that the 10% (or whatever amount paid by you and agreed by the Seller) will be refunded to you once the loan is fully disbursed to the Seller.
Anyway, I did a calculation; if you borrow 100% loan amounting to RM400,000 and your repayment period is 35 years, your monthly instalment payments will be RM1,819. Traditionally, it means that you will have to have minimum RM6,000 per month income to qualify.
In summary, unless you are able to top up the difference with your own cash, you will not be able to buy a property above the value of RM220,000. RM400,000 is just rhetoric and not practical unless the eligibility is extended to first house buyers with income of RM6,000 and below.
David Wong
Principal
QUANTUM real estate
mobile:0193330573
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