KUALA LUMPUR – Feb 15, 2017: The new special financing scheme recently introduced by the Malaysia People’s Housing Programme (PR1MA) is an addition to its financial aid initiatives for potential homebuyers.
A statement issued by the national housing firm to The Mole today states that the Special PR1MA End-Financing scheme complements its Homebuyers Assistance Programme which was started in 2015.
On Monday, its chief executive officer Datuk Abdul Mutalib said about 60 per cent of successful applicants had to give up the PR1MA offers last year as they failed to secure conventional loans.
The new scheme is expected to improve the loan eligibility for 15,000 prospective buyers, a sharp rise from about 4,500 last year.
Many have applauded the latest initiative as it will further cushion the burden facing middle-income home buyers.
Even so, some believe that the scheme should have been introduced earlier.
PR1MA said it had introduced three initiatives previously to provide easier financial access.
“When one talks about public housing, one must be mindful that we (PR1MA) are targeting those that may or may not have adequate financial muscle to purchase a house.
“End-financing is a critical component in a home buying process and better access to it helps increase the chances of getting affordable housing for the middle-income group.
“In view of this, PR1MA had earlier in 2015 come up with assistance programme, which consists of three main components.
“The recently announced loan scheme is the latest addition introduced to provide them with better access to a higher loan amount, with a significant reduction in monthly home loan installments at affordable levels,” it added.
PR1MA also said in its statement that the three financial aids are the end-financing of up to 110 per cent of the Sale and Purchase prices for eligible buyers, a Rent-to-Own financing initiative, and an insurance plan known as CARE by PR1MA.
Meanwhile, under the new scheme, home buyers are only required to pay loan interests via installments.
They are required to start repayment of the borrowed principal amount beginning from the sixth year.
Home buyers can also opt-in for the Employees Provident Fund Account 2 withdrawal option.
The option will allows them to qualify for a larger loan amount, and future contributions into the Account 2 will be used to complement the monthly house loan instalments.
PR1MA has partnered with four banks to provide the latest scheme.
As of January this year, PR1MA has approved about 260,188 units nationwide, with some 132,352 units currently in various stages of construction.