KUALA LUMPUR: Young Malay­sians eligible for housing loans under the My First Home Scheme will be charged an interest rate or profit rate of base lending rate (BLR) minus 1.8% for the duration of their loan.

A person has to be no more than 35 years of age when applying for the loan and their individual monthly income must not be more than RM3,000 a month.

The maximum duration of a loan under the My First Home Scheme is 30 years or up to the age of 65 years, whichever comes first.

Malayan Banking Bhd (Maybank) deputy president, head of community financial services Lim Hong Tat said the maximum loan amount under the new scheme would be 105%, with a loan covering the entire value of the house and an additional 5% for mortgage reducing term assurance (MRTA).

Home buyers would need to also take fire insurance for their new homes and have the option of taking either a conventional or Islamic loan when buying their house.

The loan will exclude refinancing, re-mortgage and a redraw facility.

Lim said the scheme was open to salaried and fixed-income earners and those applying need to be confirmed employees who have been working for a minimum of six months with the same employer.

Businessmen, the self-employed and non-fixed income earners are not eligible for a loan under the scheme.

“The repayment amount is 1/3 of the monthly income or up to a maximum of 50% margin of repayment on a case-by-case basis,” said Lim in an e-mail response.

The Government on Tuesday launched the My First Home Scheme for young Malaysians to buy their first house.

Source: The Star