KUALA LUMPUR: Bank Negara is opening up the RM1bil fund for affordable housing, introduced in January this year, to a bigger group of first-time home buyers.
From Sept 1 onwards, the scheme will be opened to buyers with a maximum monthly household income of up to RM4,360. Previously, the eligibility was capped at household earnings of less than RM2,300 a month.
Buyers can also afford to use the scheme to purchase houses of up to RM300,000 a unit. This is double the previous limit of RM150,000.
Participating financial institutions under this scheme are AmBank (M) Bhd, Bank Simpanan Nasional, CIMB Bank Bhd, Malayan Banking Bhd and RHB Bank Bhd.
The fund was introduced in January this year to help first-time home buyers, especially those in the lower-income bracket and in smaller cities to obtain financing for property.
The fund will be opened for two years from Jan 2, 2019. Bank Negara, in January, said the scheme would help first-time home buyers reduce their monthly mortgage installment by as much as 23% compared to existing loans.