KUALA LUMPUR, Oct 10 (Bernama) — Datuk Seri Najib Tun Razak today announced the Youth Housing Scheme in an effort to encourage house ownership among the youths in the country. The Prime Minister said the scheme offered a funding limit for a first home not exceeding RM500,000 for married youths aged between 25 and 40 with a household income of not more than RM10,000 with a maximum loan period of 35 years. He said 20,000 housing units would be built under the scheme which would be offered on a ‘first come first served basis’.
“When we review the needs of youths, home ownership appears to be a big issue especially with regard to the cost of houses and financing,” he said when tabling the 2015 Budget with the theme “People Economy” at the Dewan Rakyat, here. He said the scheme would be created on a smart partnership basis between the government, Bank Simpanan Nasional, Employees Provident Fund (EPF) and Cagamas. Najib, who is also the Finance Minister, said under the scheme, the government would provide monthly financial assistance of RM200 to borrowers for the first two years to reduce the burden of monthly installments besides giving a 50 per cent stamp duty exemption on the instrument of transfer agreements and loan agreements.
He also stressed that the government would provide a 10 per cent loan guarantee to enable the borrowers to obtain full financing including the cost of insurance. “Borrowers can also withdraw from the EPF Account 2 to top up their monthly installments and other related costs,” he said. The creation of the housing scheme was contained in the sixth strategy of the Budget 2015 which was ‘Developing National Youth Transformation Program’. Under this strategy, Najib said the government would also create the 1Malaysia Youth City by allocating RM100 million to fund three pilot projects in the Peninsula, Sabah and Sarawak. “This is to provide a comprehensive ecosystem for the youths to increase their capabilities and progress in work, business and entrepreneurship as well as enjoy housing and recreational facilities,” added Najib.