Budget 2019: Bank Negara sets up RM1b Fund for Affordable Homes

PETALING JAYA (Nov 2): Bank Negara Malaysia will be establishing a RM1 billion Fund for Affordable Homes (the Fund) to help homebuyers from the lower income group nationwide to finance the purchase of their first homes.

The Fund will be available for two years from Jan 2, 2019 or until the Fund is fully utilised, said Bank Negara in a statement following the announcement of the Fund by Finance Minister Lim Guan Eng when tabling Budget 2019 in Parliament today.

Under this Fund, eligible homebuyers could obtain financing (conventional or Islamic) at a concessionary rate at participating financial institutions.

 The criteria and features of Bank Negara’s Fund for Affordable Homes are:

•          Available to Malaysian citizens with maximum monthly household income of RM2,300;

•          The property price is up to RM150,000;

•          The financing rate is up to 3.5% per annum; and

•          The participating financial institutions are AmBank, Bank Simpanan Nasional, CIMB Bank, Maybank and RHB Bank

“Owning a home is a major investment or commitment for many people. It is therefore important for prospective homebuyers to assess their ability to meet the financial commitments associated with owning a home, including mortgage repayments and other related expenses. To assist first-time homebuyers in this, an easy and convenient online financial education module will be provided by Agensi Kaunseling dan Pengurusan Kredit (AKPK) for home buyers that apply for financing under the Fund,” said Bank Negara.

Members of the public may contact the participating financial institutions for further information, it said.

To assist low income households and first-time homebuyers, the launch of the Fund will be complemented by a broader range of measures to assist homebuyers with monthly income of RM5,000 and below, to purchase their first home priced up to RM300,000.

These measures which apply to eligible home financing from all financial institutions are aimed at lowering the ancillary costs of homeownership for qualified borrowers and include stamp duty exemption, affordable rates for mortgage protection cover and waivers on the legal fees on sales and purchase and financing agreements.