More M’sians can now  own their own homes
Published on: Thursday, August 22, 2019
By: Bernama
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KUALA LUMPUR: Malaysian households earning less than RM4,360 monthly can soon have access to Bank Negara Malaysia’s RM1 billion fund for affordable homes to finance their first home that costs less than RM300,000.

Bank Negara has expanded the fund’s eligibility criteria in which maximum monthly household income will be increased to RM4,360 from RM2,300 previously and maximum property price to RM300,000 from RM150,000.

Bank Negara governor Datuk Nor Shamsiah Mohd Yunus said this was the central bank’s measure to assist a larger targeted group to own their first home.

“The RM300,000 house price is in line with the definition of affordable housing according to National Affordable Housing Policy,” she said at the launch of Khidmat Nasihat Pembiayaan (MyKNP) here.

The enhancements will take effect on Sept 1.

The scheme, launched in January, was expected to benefit first time home owners who otherwise would not be able to afford a home due to financial constraints and loan eligibility.

Shamsiah said financing approval rates had been stable as financial institutions continue to provide financing to viable businesses and eligible borrowers, even in a challenging economic environment.

“Financing, overall, was consistent with the current economic growth rate of 4.9 per cent in the second quarter of 2019,” she said, adding that net financing in the second quarter of this year grew by 5.6 per cent on an annual basis.

Shamsiah said the continued issuance of loans to all segments continues to support the country’s economic activity.

“SMEs continue to receive financing support and this is proven by higher financing disbursements for the first half of this year to RM152 billion compared with RM149 billion for the same period last year,” she said.

Financial institutions also continue to support homeownership, with the approval of new housing loans amounting to RM78.5 billion for the first six months of the year, benefiting over 180,000 borrowers, she said.

“What is noteworthy is the ability for homeowners to repay housing financing and this is still a major challenge for them.”

Banks such as Ambank, Bank Simpanan Nasional, CIMB Bank Bhd, Malayan Banking Bhd and RHB Bank Bhd are providing the financing at a lower rate of 3.5 per cent. – Bernama



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