While the eligibility criteria for the Youth Housing Scheme (YHS) has been relaxed, the number of loans approved for the scheme remained low at more than 3,000 as at August.
Comparatively, the government had envisioned the scheme to offer a total of 20,000 housing loans.
The scheme has been expanded to include Malaysian citizens aged from 21 to 45 years old as well as single or married youths with monthly household income of not more than RM10,000.
Offered solely by Bank Simpanan Nasional (BSN), the scheme was previously aimed at married youths aged 25 to 40 with a combined household income of not more than RM10,000, who are looking to acquire their first home.
Launched in July 2015, YHS is a partnership between the Employees Provident Fund, government, Cagamas Bhd and BSN. Set to expire by end-2017, the scheme offers 100 percent financing to first-time home buyers.
It is offered for financing the acquisition of completed, under construction or subsale homes with 100 percent stamp duty exemption on transfer of ownership as well as facility documents for properties costing up to RM300,000.
The scheme sees the bank providing housing loans – both Islamic and conventional – amounting from RM100,000 to RM500,000, with a tenure of up to 35 years or 65 years of age, whichever comes first.
Successful applicants also get additional financing of up to five percent of the acquisition price for the Mortgage Reducing Term Takaful or Mortgage Reducing Term Assurance. To help borrowers with their monthly instalments, the government also gives RM200 a month, which will be credited to the financing account of the borrower for two years.
BSN is reportedly in discussion with the government for the extension of the scheme beyond 31 December 2017.
Image sourced from Malay Mail.
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