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The government will allocate RM1 billion to help those earning RM2,300 or less a month to own their first home. (NSTP Archive)

KUALA LUMPUR: The government will allocate RM1 billion to help those earning RM2,300 or less a month to own their first home.

Finance Minister Lim Guan Eng said the fund would be set up by Bank Negara Malaysia to help those keen to purchase affordable homes priced up to RM150,000.

“From January 1, 2019, these funds will be made available at AmBank, CIMB Bank, Maybank, RHB Bank and Bank Simpanan Nasional at a rate of 3.5 per cent.

“This will reduce the amount of monthly installments financing by home-based borrowers, making it easier to get financing.

“The fund is available for two years or until the allocation is spent,” he said when tabling the Budget 2019 in the Dewan Rakyat here on Friday.

Meanwhile, he said first-time house buyers who are purchasing properties worth up to RM500,000 will receive a grant stamp duty exemption of up to the first RM300,000 on transfer instruments and loan agreements for two years until Dec 2020.

“For first-time home buyers with a household income of up to RM5,000, the government will allocate RM25 million to Cagamas Bhd.

“This is done to provide a mortgage guarantee to enable borrowers to obtain higher financing, including deposit fees.

“This measure is expected to cost between 7 and 11 per cent for home buyers, aside from any discounts offered by the developer,” he said.

For more 2019 Budget stories click here .

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