PR1MA introduces 'step-up financing' to ease home ownership
The 1Malaysia Peoples’ Housing (PR1MA) Corporation has targeted to complete 15,000 units of PR1MA homes nationwide this year.
Its chief executive officer Abdul Mutalib Alias said as of January, a total of 260,188 units were approved by the members of the corporation while 132,352 units were now being constructed.
"PR1MA has also introduced a special flexible scheme, known as the Special PR1MA End Financing Scheme (SPEF), to give opportunity for the middle income group (earning between RM2,000 and RM15,000) to own homes.
"This scheme acts as a better access for higher loan amount and enabling its eligible applicants to pay monthly mortgage at a lower amount than the normal loans," he told a press conference to introduce the scheme in Kuala Lumpur today.
Abdul Mutalib said the scheme could also facilitate the home ownership process especially for first time house buyers as it would increase their chances of getting loans from the banks.
He said the scheme was established in collaboration with Bank Negara Malaysia, the Employees Provident Fund (EPF) as well as four local banks, namely Maybank, CIMB, RHB and Ambank.
The cornerstone of SPEF was the step-up financing and the step-up financing with EPF Account 2 withdrawal options in which only the interest needed to be paid in the first five years for both schemes, as the principal amount would only kick in from year six onwards until the loan is settled, said Abdul Mutalib.
He also said the step-up option combined with withdrawals from EPF Account 2 would mean that home buyers can have access to a bigger loan amount, depending on the borrowers' credit assessment.