Govt guar­an­tee of up to RM100,000 to help buy­ers of PR1MA homes

The Sun (Malaysia) - - SUNBIZ - BY EVA YEONG

KUALA LUMPUR: The gov­ern­ment will guar­an­tee up to RM100,000 un­der the spe­cial step-up end-fi­nanc­ing scheme an­nounced for PR1MA (1Malaysia Peo­ple’s Hous­ing Pro­gramme).

Sec­re­tary Gen­eral of Trea­sury Tan Sri Dr Mohd Ir­wan Seri­gar Ab­dul­lah said some buy­ers who were cho­sen from the PR1MA bal­lot­ing process were still un­able to ob­tain loans.

“The banks said the credit wor­thi­ness is not there. So we talked to the banks, and up to RM100,000 the gov­ern­ment will guar­an­tee,” he said dur­ing his key­note ad­dress at a di­a­logue on Bud­get 2017 or­gan­ised by the Malaysian Eco­nomic As­so­ci­a­tion yes­ter­day.

“Let’s say they are only el­i­gi­ble for RM160,000 but they want to buy a RM250,000 house, the gov­ern­ment will cater for the dif­fer­ence of RM90,000. In that sense the gov­ern­ment will fi­nance the bor­row­ing,” he said.

Ir­wan said in the event of a loan de­fault, the prop­erty will be put up for auc­tion.

Un­der the scheme, buy­ers who are el­i­gi­ble for PR1MA homes will be able to pay less at the be­gin­ning and in­crease the in­stal­ment pay­ments as their salaries in­crease over time.

Last Fri­day, the gov­ern­ment an­nounced a spe­cial step-up end-fi­nanc­ing scheme in col­lab­o­ra­tion with Bank Ne­gara Malaysia, the Em­ploy­ees Prov­i­dent Fund (EPF), and four banks – May­bank, CIMB, RHB and AmBank.

A state­ment re­leased by the EPF on Fri­day, how­ever, cau­tioned that buy­ers choos­ing the fa­cil­ity will no longer be el­i­gi­ble for other pre-re­tire­ment with­drawals un­der Ac­count 2, namely ed­u­ca­tion, Age 50 and Hajj with­drawals, un­til the PR1MA loan is fully set­tled.

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