Bank Negara Expands Eligibility Criteria For RM1B Fund For Affordable Homes
Author Avatar

 

Bank Negara Expands Eligibility Criteria For RM1B Fund For Affordable Homes(Image: The Star)

Bank Negara Malaysia (BNM) has expanded the eligibility criteria for first time home buyers looking to buy a house via the RM1 billion Fund for Affordable Homes scheme.

The nation’s central bank has made two changes tat will allow more Malaysians to apply for this scheme. The first is the expansion of the maximum monthly household income to RM4,360, while the second change is increasing the maximum property price applicable under this scheme to RM300,000.

Previously, the maximum household income was set at RM2,300, while eligible properties needed to be below RM150,000. Essentially, Bank Negara Malaysia has increased both eligibility criteria by almost double their original amounts.

Both these changes would kick off from 1 September 2019. After the announcement, Finance Minister Lim Guan Eng said this enhancements, along with the scheme’s extended mortgage duration, may increase homeownership by as much as 20%.

Established in January this year to assist the B40 group with purchasing their first property, the Bank Negara Malaysia RM1 billion Fund For Affordable Homes has a longer mortgage repayment tenure of up to 40 years (or when the applicant reaches 70 years of age, whichever is shorter), while the maximum interest rate is capped at 3.5% p.a..

Besides the two changes, BNM has retained the other eligibility criteria that applicants have to meet: that they be Malaysian citizens, employed, and have a clean financial record for the past 12 months.

(Source: The EdgeBank Negara Malaysia)

 

0 0 votes
Article Rating
SHARE

Comments (0)

Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments
Top Home Loans Articles
Post Image
Public Bank Extended Moratorium: Flexible Arrangements To Reduce Loan Instalments Until End-2021
Jacie Tan
- 7th August 2020
Public Bank has released the details of its Covid-19 assistance for those who will still be in financial […]
Post Image
Malaysia Bank Moratorium: Why You Should Opt For The 6-Month Deferment For ALL Loans (Updated)
Pang Tun Yau
- 6th May 2020
(Update 6/5/2020 7.30pm: Finance Minister Tengku Dato’ Sri Zafrul Abdul Aziz has announced that hire purchase agreements for both […]
Post Image
Moratorium Extension: Explaining What Is Rescheduling And Restructuring (R&R) And Other Financial Terms Used In Loan Agreements
Alex Cheong
- 13th August 2020
From 7 August 2020, Malaysian banks have begun accepting applications from eligible borrowers for the extended moratorium and […]
Post Image
#SaveMoneyWithHann: Saving Smart While Interest Rates (and OPR) Are Low
Hann Liew
- 9th October 2020
It’s been a while since I’ve posted, but it’s been a busy time here at RinggitPlus. We’ve got […]

Related articles

Related Posts Image
Related Posts Image
Related Posts Image
Related Posts Image