Implementation of My First Home scheme yet to be figured out

The government will look for the best mechanism to assist housing developers in the country to build more houses priced at RM220,000 to ensure the success of the ‘My First Home’ scheme.

Minister in the Prime Minister’s Department Tan Sri Nor Mohamed Yakcop said the government’s effort would help more people, especially the younger generation, to own houses.

He said the government realizes that housing developers would be more inclined to build houses that are priced above RM220,000, especially in Kuala Lumpur or Penang where property value was high.

“Since the price of land in Kuala Lumpur and Penang is high, the government has to look for the best mechanism to encourage developers to build houses priced at RM220,000.

“The government is currently having discussions with developers,” he told reporters after visiting and handing out assistance to three tenants under Program Bantuan Rumah (PBR) in Tasek Gelugor here today

Nor Mohamed said among assistance that the government provide is to offer premium land at a cheaper rate so as to build houses priced not more than RM220,000.

The government will introduce the ‘My First Home Scheme’ through Cagamas Berhad to assist the newly-employed younger group earning less than RM3,000 per month to buy a house.

Prime Minister Datuk Seri Najib Razak said the scheme would provide a guarantee on down payment of 10 per cent for houses costing below RM220,000. This scheme is for first-time house buyers with a household income of less than RM3,000 per month.

In other words, the house buyers will obtain a 100 per cent loan without having to pay the 10 per cent down payment.