Those buying home under the 1Malaysia People Housing Programme (PR1MA) will save money in a scheme to be introduced under Budget 2015.
Th scheme expected to be announced with the Budget tomorrow will see the Government subsidising a portion of the interest rate for the home loans.
Details of the scheme are still being worked out but it will provide some form of financial relief for the buyers. Housing loan in Malaysia now range between 4.39% and 5.85% based on the base lending rate (BLR) of 6.85%.
More than 700,000 Malaysian have expressed interest in PR1MA with 500,000 affordable homes to be rolled out by 2018 under the Government initiative.
The programme has been introduced in 2011 as the targets in urban areas where an individual or a family earns a combined household income of RM2,500 to RM7,500 monthly. The scheme is likely part of rent-to-own (RTO) scheme for propestive buyers unable to secure housing loans from financial institutions.
This will enable people to own their house by paying rent on the property for 20-30 years, towards eventually owning it.
Many housing industry players praised the plan to give middle-income Malaysians a helping hand to own a home.
The Urban Wellbeing, Housing and Local Government Minister also proposed to lending institutions to help low-income earners to buy homes.
The financing license could be given to companies that had sufficient funds such as insurance firms and cooperatives. The licenses will allow these companies to give out housing loans to buyers of low-cost houses.
– The Star
// This is good scheme from our government but we still need to wait for Budget 2015. For those low and middle income people , grab this opportunity as it is one method to own a home. I can’t afford to buy any home and this scheme for people who don’t have any home yet… So, I’m recommend any of my Malaysian reader to use this opportunity.