Home is the basic need of people. Yet, many Malaysians cannot afford to buy a home for their family because of the increasing price of houses. With the inflation rising and the effect of the pandemic, affording a home has become even more challenging.
Here are two major initiatives in 2022 that can help Malaysian homebuyers afford a house
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Home Ownership Programme (HOPE)
The government found that young adults between the age of 25 to 35 fail to own affordable houses for two main reasons. Either they struggle to obtain a home loan or face a ‘barrier of entry’ into the housing market.
Keeping the youth in mind, the government plans to organise a Home Ownership Programme (HOPE). It will be a collaborative effort of the Housing and Local Government Ministry and Finance Ministry.
The programme will focus on 3 main elements to assist the homebuyers in affording a home; through the Malaysian Housing Financing Initiative (IPPM), housing provision, programmes and promotions.
Addressing the nation on 8 March 2022, Datuk Seri Reezal Merican Naina Merican, the Housing and Local Government minister, said, ‘Through IPPM, programmes such as My First Home Scheme under Cagamas Bhd, Housing Credit Guarantee Scheme under Syarikat Jaminan Kredit Perumahan Berhad (SJKP) and rent-to-own (RTO) PR1MA are being finalised and will be enhanced with the cooperation of selected financial institutions to attract the B40 and M40 groups.’
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Yayasan My First Home (YMFH) Assistance
Yayasan My First Home (YMFH) aims to help 1,000 blacklisted people to own their first home within 1 year. Tan Sri Vincent Tan, the chairman of the organisation, talked about the assistance in detail while attending a launch event on 3 March 2022.
‘A home is a stable foundation for the family. It is essential for a person’s sense of dignity, safety and inclusion. Owning a home should be a basic right. Unfortunately to many, it is not as housing costs have risen faster than incomes,’ he said.
To find a solution to this challenge, he established YMFH. It aims to help Malaysians, especially the B40 group, afford their own homes. The organisation intends to achieve the goal by promoting and supporting innovative solutions to make affordable housing more accessible to people. In addition, they are working with the community to develop sustainability holistically.
Tan also emphasised that access to finance is a crucial obstacle that restricts home buyers from purchasing a home. Many people cannot obtain loans because they are blacklisted. For many B40 households, the overwhelming debts prevent them from getting financing support if they are blacklisted. The foundation aims to specifically assist these people in acquiring their first home.
‘This initiative aims to understand these challenges better to identify means of helping these individuals,’ he added.
He also mentioned that the Better Malaysia Foundation is pledging to contribute RM5 million to YMFH to serve this important cause. He urges more businesses, government and non-government organisations to join YMFH in their effort to provide the much-needed solutions to increase homeownership in the country.
If you know of any other programmes or aids helping homebuyers purchase a house, write to us. For more such news on the Malaysian property industry, stay tuned to the Guyub news portal.
