RAM Sustainability has completed its inaugural Social Impact Rating (SIR) of HouzKEY rent-to-own (RTO)/Ijarah Home Financing scheme offered by Maybank Islamic Berhad and managed by Maybank Ventures Sdn Bhd (MVSB or the Operator). They have assigned an initial SIR of 
(3.5 Star) out of 
(5 Star) to the scheme.
Figure 1: Rating Components of HouzKEY’s Social Impact Rating
The SIR is an assessment of the current and potential contribution of a social project, entity, product or service (the social solution) to meet the requirements of a clearly identified social gap with effective solutions. Our rating considers the importance, innovation, scale, duration, track record and governance of the solution.
HouzKEY is Malaysia’s first banking-group-initiated RTO scheme. The rating of the scheme is driven by the strong corporate and sustainability governance of Malayan Banking Berhad (Maybank) – which wholly owns the Operator – and the national housing affordability gap that HouzKEY addresses. As a product, HouzKEY is aligned to Maybank’s corporate and sustainability strategies and contributes to its sustainability commitments.
Given the cessation of government home financing schemes for the middle-income group, such as MyDeposit, My First Home and My Home, HouzKEY in our view addresses the gap in financing schemes available to the lower- to middle-income group, particularly the latter. We also foresee a potential long-term benefit in allowing individuals the opportunity to own a home through the 35-year financing tenure of the facility. The rating, however, is moderated by the limited scale of HouzKEY’s impact and track record of the scheme in view of its relatively recent inception.
“The housing affordability gap in Malaysia is apparent across different states and income groups. We believe HouzKEY has the potential to bridge this gap and we will continue to monitor its positive impact and effectiveness over time,” said Gladys Chua, CEO of RAM Sustainability.
HouzKEY is based on the Ijarah Muntahiyah Bi Tamlik shariah leasing facility, a lease contract that ends with ownership via sale. Introduced in 2018, HouzKEY is currently available only for properties in the primary market. Covering over 100 projects to date, the scheme has benefited over 5,600 households in Kuala Lumpur, Selangor, Putrajaya, Penang, Negeri Sembilan, Johor, Pahang and Sabah.
Successful applicants for HouzKEY are offered a financing margin of up to 105%, covering the downpayment and other transaction costs. While the initial tenure is five years, customers may exercise the option to refinance to a traditional mortgage with Maybank, Maybank Islamic, or other banks after a minimum occupancy of one year. The Operator works with corporations, organisations, state governments and the federal government to address challenges around access to homeownership.
RAM Sustainability has completed its inaugural Social Impact Rating (SIR) of HouzKEY rent-to-own (RTO)/Ijarah Home Financing scheme offered by Maybank Islamic Berhad and managed by Maybank Ventures Sdn Bhd (MVSB or the Operator). They have assigned an initial SIR of
(3.5 Star) out of 
(5 Star) to the scheme.
Figure 1: Rating Components of HouzKEY’s Social Impact Rating
The SIR is an assessment of the current and potential contribution of a social project, entity, product or service (the social solution) to meet the requirements of a clearly identified social gap with effective solutions. Our rating considers the importance, innovation, scale, duration, track record and governance of the solution.
HouzKEY is Malaysia’s first banking-group-initiated RTO scheme. The rating of the scheme is driven by the strong corporate and sustainability governance of Malayan Banking Berhad (Maybank) – which wholly owns the Operator – and the national housing affordability gap that HouzKEY addresses. As a product, HouzKEY is aligned to Maybank’s corporate and sustainability strategies and contributes to its sustainability commitments.
Given the cessation of government home financing schemes for the middle-income group, such as MyDeposit, My First Home and My Home, HouzKEY in our view addresses the gap in financing schemes available to the lower- to middle-income group, particularly the latter. We also foresee a potential long-term benefit in allowing individuals the opportunity to own a home through the 35-year financing tenure of the facility. The rating, however, is moderated by the limited scale of HouzKEY’s impact and track record of the scheme in view of its relatively recent inception.
“The housing affordability gap in Malaysia is apparent across different states and income groups. We believe HouzKEY has the potential to bridge this gap and we will continue to monitor its positive impact and effectiveness over time,” said Gladys Chua, CEO of RAM Sustainability.
HouzKEY is based on the Ijarah Muntahiyah Bi Tamlik shariah leasing facility, a lease contract that ends with ownership via sale. Introduced in 2018, HouzKEY is currently available only for properties in the primary market. Covering over 100 projects to date, the scheme has benefited over 5,600 households in Kuala Lumpur, Selangor, Putrajaya, Penang, Negeri Sembilan, Johor, Pahang and Sabah.
Successful applicants for HouzKEY are offered a financing margin of up to 105%, covering the downpayment and other transaction costs. While the initial tenure is five years, customers may exercise the option to refinance to a traditional mortgage with Maybank, Maybank Islamic, or other banks after a minimum occupancy of one year. The Operator works with corporations, organisations, state governments and the federal government to address challenges around access to homeownership.