BSN looking to assist 10,000 borrowers under Youth Housing Scheme

BSN looking to assist 10,000 borrowers under Youth Housing Scheme

KUALA LUMPUR, July 15  — Bank Simpanan Nasional (BSN) is striving to get 10,000 new borrowers under its Youth Housing Scheme to boost its low take-up rate.

Deputy Chief Executive (Strategy & Communication) Kameel Abdul Halim said the scheme, which was aimed at helping married youths own their first home with ease, was launched in July last year but only 2,000 borrowers took advantage of it from BSN.

“We are targeting 10,000 new borrowers. The scheme runs for two years and if there is a need we shall extend it,” he told reporters on the sidelines of BSN’s hari raya open house here today.

Kameel said the central bank’s decision to lower the overnight policy rate (OPR) would help spur economic activities and banks would response by lowering interest rates to extend financing to more borrowers.

“The cost of borrowing is getting cheaper. While the OPR will affect mainly the floating rate loans, from now on the new fix rate (for housing) will also be lower as the interest rate has gone down,” he said.

As the property price for purchases under the scheme can be up to RM500,000, Kameel said BSN would allocate RM10 billion for the facility, dubbed the ‘BSN MyHome’ flagship products, specifically designed to help married youths own their first home with ease.

The facility is meant to finance the purchase of either completed, under construction or sub-sale properties, with 50 per cent of stamp duty exemption on the transfer of ownership and facility documents.

Under the scheme, the government will provide an RM200 monthly financial assistance to borrowers for the first two years (from the date of the first disbursement to the developer/ vendor) to reduce the burden of monthly installments.

It is offered to first-time house purchasers among married Malaysians, aged 25 to 40, with a household income of not more than RM10,000 per month.

“We have been mandated to help this group. It is not an issue of financing but it always involves affordability. It’s also more an issue of their awareness and consumer education,” he said.

Kameel said even though the group would get government assistance on the installments, they have to make sure that their credit record is fine and that they are ready to repay the loan as the aid would be only for two years.

— BERNAMA

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