UNDER the FundMyHome (FMH) scheme, the 20% that a buyer pays towards the house price is put into a trust in order to generate the investors’ 5% annual yield. Two banks and others fund the balance 80%. Developers get this 80% pronto.

If the property, independently valued, rises on the fifth year, the developer gets his balance 20%. From the developer’s point of view, FMH helps to reduce unsold units.

After all, in a conventional mortgage, he is already giving 20% to 25% rebates. With FMH, there is hope that he would get the remaining 20% five years later if the price goes up.

As for the buyer, he can buy the remaining 80% at the prevailing market price. If he cannot afford to do so, he can roll over another five years by topping up the 20% – if he has the means. Or he can sell.

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