New scheme to help first time house buyers in the pipeline for Budget 2017

New scheme to help first time house buyers in the pipeline for Budget 2017

KUALA LUMPUR, 2 September: The government will announce a new scheme under Budget 2017 to help first time house buyers obtain financial loans.

Finance Minister II Datuk Johari Abdul Ghani (pix) said the objective of the scheme is to bridge the gap between the price of houses and the loan amount.

“This is not an incentive, the buyer will pay for the house but what we are trying to do is to bridge the gap between the price of housing and the loan amount,” he said after launching the Rumah Mesra Rakyat 1Malaysia (RMR1M) online system at Menara Perkeso here.

He however added that the scheme would only involve the purchase of houses valued at RM300,000 and below.

Johari said the proposed scheme would address the mismatch between the purchasing power of buyers and the loan amount they are eligible to receive from banks.

“I do not have the exact figure, but the number of people who are not able to buy affordable houses is quite significant.

“Its not like the banks would not want to give out loans, but say if a house price is RM300,000 but the buyer is only entitled for a RM200,000 loan, so there is a gap there,” he said.

He said his ministry is in discussions with four commercial banks and added that Bank Negara would act as the regulator.

The banks involved are Maybank, RHB bank, AmBank and CIMB Bank.

— THE SUN

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