'My First Home Scheme' launched

The programme is an initiative launched by the government with the collaboration of national mortgage company, Cagamas Bhd, and financial institutions to reduce the burden of the younger generation who are faced with a high cost of living and exorbitant real estate prices.

KUALA LUMPUR: Twenty commercial banks, including Islamic financial institutions, are participating in the "My First Home Scheme" programme launched by Prime Minister Datuk Seri Najib Tun Razak here today.

The programme is an initiative launched by the government with the collaboration of national mortgage company, Cagamas Bhd, and financial institutions to reduce the burden of the younger generation who are faced with a high cost of living and exorbitant real estate prices.

"This will help the younger generation in Malaysia own their first house as soon as possible," Najib added.

Via the scheme, the younger generation earning less than RM3,000 per month, can obtain 100 per cent financing from selected financial institutions for houses costing between RM100,000 and RM220,000 with a repayment period of 30 years.

"This means, the government, via Cagamas Bhd, will guarantee the downpayment of 10 per cent," Najib said, adding that first-time buyers need not come up with any deposit.



The Prime Minister also hoped more property developers would build affordable houses to cater for the people.

The banks involved in financing the "My First Home Scheme" are Affin Bank Bhd, Affin Islamic Bank Bhd, Alliance Bank Malaysia Bhd, Alliance Islamic Bank Malaysia Bhd, AmBank Bhd, AmIslamic Bank Bhd, Bank Islam Malaysia Bhd, Bank Muamalat Malaysia Bhd, CIMB Bank Bhd, CIMB Islamic Bank Bhd, EON Bank Bhd, EONCAP Islamic Bank Bhd, Hong Leong Bank Bhd and Hong Leong Islamic Bank Bhd.

Others include Maybank Bhd, Maybank Islamic Bank Bhd, OCBC Bank Malaysia Bhd, OCBC Al Amin Bhd, Public Bank Bhd, Public Islamic Bank Bhd, RHB Bank Bhd, RHB Islamic Bank Bhd, United Overseas Bank Malaysia Bhd, Standard Chartered Bank Malaysia Bhd, Standard Chartered Saadiq Bhd and Cagamas Bhd.

Under the 2011 Budget, the government announced several initiatives to increase house ownership and enhance peoples' quality of life.

This, among others, included an allocation of RM568 million to build 300 units under the Urban Housing Assistance Scheme and 79,000 units under the Peoples' Housing Programme.

"An additional allocation of RM50 million has been set aside especially to help house ownership among estate employees under the low cost housing scheme," said Najib. -- BERNAMA