Home, sweet home for young couples

New houses - Filepic

A NEW Youth Housing Scheme has been set up by the Government to help young couples, whose household income does not exceed RM10,000, buy their first home.

Prime Minister Datuk Seri Najib Tun Razak said the maximum 35-year loan offered a funding limit not exceeding RM500,000 for married youth, aged between 25 and 40 years old.

“The Government will provide monthly financial assistance of RM200 to borrowers for the first two years to reduce the burden of monthly instalments,” he said. 

Najib described the scheme as a smart partnership between the Government, Bank Simpanan Nasional, Employees Provident Fund (EPF) and Cagamas.

The Government will also give a 50% stamp duty exemption on the instrument of transfer and loan agreements, as well as 10% loan guarantee to enable borrowers to obtain full financing, including cost of insurance. 

Borrowers can also withdraw from their EPF Account 2 to top up their monthly instalment and other related costs.

“I urge the youth to grab this opportunity which is offered on first-come-first-served basis for 20,000 units only,” he said.

To address the issue of home ow­­nership at affordable prices, RM1.3bil will be allocated to build 80,000 units under the 1Malaysia People’s Housing Programme (PR1MA).

To enable more people to own houses, under the scheme, the cei­ling of household income has been raised from RM8,000 to RM10,000.

“In addition, a Rent-To-Own Scheme will be introduced specifically for individuals who are unable to obtain bank financing,” he said.

RM644mil will be allocated to the National Housing Department (JPN) to build 26,000 units under the People’s Housing Programme (PPR).

He said Syarikat Perumahan Negara Berhad (SPNB) would build 12,000 units of Rumah Mesra Rakyat, 5,000 units of Rumah Idaman Rakyat and 20,000 units of Rumah Aspirasi Rakyat on privately-owned land.

For first-time house buyers, the Government has agreed to extend the 50% stamp duty exemption and increase the purchase limit from RM400,000 to RM500,000. 

Exemption will be given until Dec 31, 2016.

The minimum eligibility for hou­sing loans will be increased from RM80,000 to RM120,000 while the maximum eligibility limit will be increased from RM450,000 to RM600,000.

The RM100 application processing fee for housing loan will be abo­lished.

The Government will improve the1Malaysia Civil Servants’ Housing (PPA1M) by reducing the minimum price of houses currently at RM150,000 to RM90,000 per unit.

He added that the qualifying requirement of household income for this would be increased from RM8,000 to RM10,000 per month. - The Star