(File pix) Prime Minister Datuk Seri Najib Razak is expected to announce a new scheme to bridge the gap between first-time home buyers and financial institutions in the upcoming 2017 Budget. (Pix by Rosela Ismail)

KUALA LUMPUR: Prime Minister Datuk Seri Najib Razak is expected to announce a new scheme to bridge the gap between first-time home buyers and financial institutions in the upcoming 2017 Budget.

Second Finance Minister Datuk Johari Abdul Ghani said its ministry is in the midst of coming up with a formula with Bank Negara and four other financial institutions namely CIMB Bank, Maybank, AmBank and RHB Bank.

He said the scheme would involve purchase of houses valued at RM300,000 and below to help those who failed to secure housing loans.

"The new scheme would address the mismatch between the buyers' purchasing power and the amount of loan they are entitled to receive from banks.

"This is not an incentive as the buyers will pay for the house but we will try to help them own their first homes while they wait for their salary increment during which they are entitled to secure a higher loan. The scheme will also have a yearly quota," he told reporters after launching the Rumah Mesra Rakyat Online (RMROnline) at Wisma Perkeso today.

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