More than 1,100 B40 households helped under BNM fund

KUALA LUMPUR: The RM1 billion BNM Fund for Affordable Homes has helped more than 1,100 households from the B40 income group afford a home, said Bank Negara Malaysia (BNM) director of financial surveillance Qaiser Iskandar Anwarudin (pix).

Speaking to the media during an engagement session today, Qaiser explained the fund was eligible for those with a monthly income of up to RM4,360 interested in purchasing properties priced up to RM350,000 from the primary market.

The fund also provides a financing rate of 3.5% per annum, with a 40-year loan tenure (or up to 70 years of age), which will reduce the amount paid for installments every month.

“The margin of financing may include down payment support and Mortgage Reducing Term Assurance (MRTA) or Mortgage Reducing Term Takaful. In total, RM180 million in loans have been applied for under the scheme,“ he said.

Meanwhile, Qaiser said that while Malaysia’s household debt stands at 82.2% of GDP, debt levels have moderated from the 2015 peak of 86.9% of GDP.

“ However, aggregate level of indebtedness among Malaysian households remains high relative to regional and rating peers, and some high income nations,“ he said.

According to data from BNM, the bulk of household borrowings is for wealth accumulation, primarily to buy a house and securities.

source https://www.thesundaily.my/business/more-than-1-100-b40-households-helped-under-bnm-fund-JA1525579