PM announces new ‘step-up’ end-financing scheme for PR1MA programme

KUALA LUMPUR (Oct 21): Prime Minister Datuk Seri Najib Razak has proposed a new special “step-up” end financing scheme for the Perumahan Rakyat 1Malaysia (PR1MA) programme when announcing Budget 2017 today.

Financing will soon be easier and more accessible with total loans of up to 90% to 100%.

“For example, an applicant with a monthly income of RM3,000 will only be eligible for a loan of no more than RM187,000. However, through this special financing scheme, an applicant will be able to borrow more than RM295,000,” said Najib.

The application process for this scheme will be implemented effective January 1 next year.

This scheme is a collaboration among the government, Bank Negara Malaysia, Employees Provident Fund as well as four local banks: Maybank, CIMB, RHB and AmBank.

Najib noted that PR1MA is well-received, with more than 12,000 units worth RM3.3 billion booked, while 85,000 units are at various stages of approval.

He added that through the National Blue Ocean Strategy initiative, the government will provide vacant lands at strategic locations to government-linked companies and PR1MA to build more than 30,000 houses with the selling price of between RM150,000 and RM300,000, which is lower than the market price of RM250,000 to RM400,000, to enhance first-time homebuyers’ affordability.

“Besides that, we will also build around 10,000 houses in urban areas for rental to eligible youths with permanent jobs, including young graduates entering labour market,” said Najib.

“They may rent up to a maximum five years, at a lower than the market rate, while they strengthen their financial position to own a house,” he added.

Najib also remarked that the government will build 5,000 units of People’s Friendly Home, with the government subsidising up to RM20,000 per unit.

“For this purpose, RM200 million will be allocated to Syarikat Perumahan Negara Bhd,” he said. 

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