PETALING JAYA: The Housing and Local Government Ministry is proposing to set up a National Housing Fund to help B40 and M20 families own an affordable home by paying 10% of the property or RM30,000 as downpayment.

Minister Nga Kor Ming said the proposal was made to reflect the spirit of Malaysia Madani in a rare move to pay downpayment for people who cannot afford to purchase a house.

“Our proposal is to set up the National Housing Fund to help B40 and M20 families own an affordable home,” he said.

In an interview with Sin Chew Daily, Nga said once implemented, the 10% downpayment would be settled through the National Housing Fund for eligible purchasers, who do not need to repay the downpayment.

At present, the proposal is only confined to affordable homes but may be extended to properties below RM500,000 in future, Nga said.

Such measure does not only help people own a home but will also solve the problem of buyers unable to secure bank loans, he added.

“Many do not have the money to pay for downpayment. The government will help you settle this while you source for a housing loan to pay for the other expenses,” he explained.

Housing and Local Government Ministry has submitted the proposal to the Finance Ministry, he said.

Once implemented, Nga said many young people would benefit from this measure, especially first-time buyers.

There are other on-going measures to assist people in owning a home too.

Through the Housing Credit Guarantee Scheme under Syarikat Jaminan Kredit Perumahan (SJKP), the government has allocated RM5 billion to provide financing guarantees of up to 120% for affordable homes, he said.

A total of 500,000 units of affordable homes are being built nationwide through collaboration with the private sector, PRIMA and Syarikat Perumahan Negara Bhd.

Nga said the goal of building 15,000 units of Rumah Mesra Rakyat under the 12th Malaysia Plan is expected to be met this year, or two years ahead of schedule.