PUTRAJAYA – The target group of the First Home Scheme (FHS) can obtain financing through the Housing Credit Guarantee Scheme (HCGS) or financial institutions when the FHS is no longer continued.
The Local Government Development Ministry said in a statement today that although the FHS, launched in 2011, was not continued this year, the government through Budget 2023 has agreed to continue funding under HCGS.
The ministry said that in the announcement of Budget 2023, the government through Syarikat Jaminan Kredit Perumahan Bhd has agreed to provide financing guarantees through HCGS for up to RM5 billion worth of loans that will benefit 20,000 borrowers.
HCGS is one of the Malaysian Housing Financing Initiatives launched by the ministry in collaboration with the Finance Ministry on April 14, 2022 with the aim of increasing home ownership, especially among the B40, M40, and informal sector workers.
“HCGS is a programme that offers housing financing without having to pay an advance (deposit) to those who do not have a fixed income or the gig economy group,” said KPKT.
According to the statement, 16,808 borrowers have benefited through loans valued at RM2.32 billion from the implementation of the HCGS until December 31.
The FHS programme was announced in the 2011 budget to help young people own their first home.
It involves a guarantee fee to Cagamas borne by the government, with Cagamas providing guarantees so that home buyers get higher loan amounts from financial institutions.
The closing date for FHS applications has been set as March 31, 2023.
Throughout the implementation period of the FHS programme, as much as RM19.9 billion worth of financing has benefited 86,708 borrowers.
“Therefore, applicants who belong to the target group involved under FHS, can still get financing through HCGS or financial institutions,” he said.
“The ministry will continue to support efforts to help borrowers achieve their dream of home ownership in line with the government’s aspirations and concern for the well-being of the people,” said the ministry. – Bernama, March 23, 2023
