KUALA LUMPUR, Nov 2 — A fund worth RM1 billion is to be set up by Bank Negara to help those earning RM2,300 monthly and below to purchase homes.
In the Budget 2019 speech, Finance Minister Lim Guan Eng announced the fund will help eligible first-time house buyers to purchase homes that are priced up to RM150,000.
“Starting January 1, the funds are readily available in Ambank, CIMB Bank, Maybank, RHB Bank and BSN at a rate of 3.5 per cent.
“The funds will be set up for two years or until the allocation is fully spent,” he said.
For first-time house buyers of properties worth not more than RM500,000, the government will provide a duty stamp exemption of up to RM300,000 on transfer instruments and loan agreements for two years until December 2020.
Lim added that the government will allocate RM25 million to Cagamas Bhd in a bid to help for first-time home buyers with a household income of up to RM5,000.
“This is done to provide a mortgage guarantee to enable borrowers to obtain higher financing, including deposit fees.”
The move is expected to reduce cost for the home buyers between seven to 11 per cent, aside from any discounts offered by the developer, Lim added.
