PUTRAJAYA, October 16 — More than 200 out of about 500 applications for the Youth Housing Scheme have been approved, Deputy Finance Minister Datuk Chua Tee Yong said.
“Young married young couples are encouraged to apply for the scheme, which has several advantages over other government housing schemes,” he said, adding that the scheme enables young couple to have their first residential property.
Speaking at a news conference here, Friday, Chua said funding up to RM1 billion had been targeted 200 applications approved Youth Housing Scheme until year-end under the scheme for 20,000 qualified applicants.
He said that Bank Simpanan Nasional (BSN), which has 401 branches throughout the country, was the sole bank appointed to implement the scheme.
As at September 30, a total of 273 loans amounting to RM69.25 million have been approved under the scheme since it was introduced in July, he added.
The scheme provides significant advantages like the loans do not require down payment since borrowers get full funding, with the government guaranteeing 10% of the loan, which includes insurance costs.
“Buyers also get 50% exemption from stamp duty on transfer of ownership letter and loan agreement, thus further reducing initial costs incurred by borrowers,” he said.
He said the scheme is open to married couples in the 25 to 40 years age group with a household income not exceeding RM10,000 per month, with the maximum repayment period of 35 years or at the age of 65 for houses priced between RM100,000 and RM500,000.
The loan is a bargain for young married couples as they are required to repay only RM200 monthly for the first two years to help ease their financial burden, he said, adding that the scheme is not restricted to certain type of houses.
With a government allocation of RM96 million, the Youth Housing Scheme is a smart partnership between the government and BSN, the Employees Provident Fund (EPF), and the National Mortgage Corporation (Cagamas Bhd).
He said borrowers could withdraw from their EPF Account 2 to repay the loan installments and other related costs.