Bank Negara Malaysia (BNM) is expected to roll out a special housing loan scheme tailored for the low to middle income group with regard to first home ownership, by next month, according to the Ministry of Finance (MoF).

"BNM is in the process of finalising a new financing scheme for the purchase of first homes for low to middle income group with several pioneer banks, Cagamas Bhd and the Housing and Local Government Ministry," the ministry said in a Parliamentary written reply dated Aug 9 to Padang Besar MP Datuk Zahidi Zainul Abidin.

The features of the scheme include giving flexibility to banks in lending guidelines for first home buyers, requiring first home buyers to attend financial counselling to ensure they receive adequate financial advice before taking a housing loan, as well as reducing the overall cost of first home ownership such as stamp duty and insurance.

The ministry said for the time being home buyers who intend to purchase their first home can access the schemes offered by financial institutions in collaboration with the government such as My First Home Scheme, Skim Jaminan Kredit Perumahan (SJKP), Skim Pembiayaan Fleksibel PR1MA (SPEF) and Skim Sewa-Beli Hartanah (rent-to-own).

The ministry's answer was in response to Zahidi's question on the government's strategy to help people obtain bank loans for affordable housing and first home financing for youth in view of BNM's strict conditions and procedures.