'MY FIRST HOUSE SCHEME' FOR YOUNG MALAYSIANS EARNING LESS THAN RM3,000 A MONTH

'My First House Scheme' for young Malaysians

KUALA LUMPUR (March 8, 2011): Owning a house is now made easier for young Malaysians earning less than RM3,000 a month with the "My First House Scheme".

"The scheme may not bring big profits to the institutions, but it is very meaningful to the people," said Prime Minister Datuk Seri Najib Abdul Razak when launching the scheme at the Putra World Trade Centre (PWTC), here, today.

Najib launching the 'My First House Scheme' at PWTC.

The scheme, which was part of the government’s initiative announced in Budget 2011, allows those aged 35 years and below, with a monthly income not exceeding RM3,000 to obtain 100% financing for houses priced between RM100,000 and RM220,000 with a  repayment period of up to 30 years.

Najib said the government was committed to improving the quality of life of the people in making Malaysia a developed nation.

"The scheme is line with our objective to be a developed and high-income nation. And to achieve our objective, house ownership must be made affordable for the people," said Najib, and urged the financial institutions involved to make procedures as simple as possible for buyers.

Some 26 banks and financial institutions are participating in the scheme. The government, through Cagamas Berhad will bear the cost of the initial 10% deposit to purchase a house.

He invited banks which had not joined the scheme to be involved in the government initiative to ensure its complete success in the interest of the people.

Najib urged developers to consider building more homes that Malaysians in general could afford.

The rapid economic expansion, the rural-urban drift and the overall increase in disposable income could push up land prices by more than 30%.

"This situation, if allowed to continue, will cause certain groups, especially those just employed and with low or moderately low income, to lose their chance of owning a house," he said.

"We always hold on to the principle of inclusivity, which means that the wealth of our nation must be distributed fairly and equitably."