KUALA LUMPUR: Over 20,000 first-time home buyers will benefit from the RM10 billion allocation for the Housing Credit Guarantee Scheme (HCGS) next year.
Under the scheme, eligible first-time home buyers can get government guarantees to purchase their first property.
In tabling the 2025 Budget (Belanjawan 2025) in the Dewan Rakyat today, Prime Minister Datuk Seri Anwar Ibrahim said RM12.8 billion in government guarantees under the HCGS has already been disbursed.
He said this benefitted over 57,000 first-time home buyers.
"Venukannan Balakrishnan is an e-hailing driver without a stable income, but through the HCGS he was able to achieve his dream of owning a home in Rawang with his beloved wife.
"The government will continue to guarantee housing loans up to RM10 billion for over 20,000 home buyers."
This year's budget also saw the government set aside RM10 billion for the scheme.
Of the RM10 billion allocated for the HCGS in 2025, half will go towards a Step Up Financing scheme for youth seeking to buy their first homes.
"This scheme offers lower repayment terms for the first five years."
Meanwhile, Anwar also said the government plans to provide individual tax relief on housing loan interest payments to encourage home ownership.
Buyers of homes worth up to RM500,000 will be eligible for a tax relief of upto RM7,000, while those purchasing homes priced between RM500,000 and RM750,000 will be eligible for a tax relief of up to RM5,000.
The tax relief can be claimed for three consecutive assessment years for sales and purchase agreements completed between Jan 1, 2025, and Dec 31, 2027.
Anwar also said around RM900 million is being allocated for 48 People's Residency Programmes and 14 Rumah Mesra Rakyat projects.
These include projects in Port Dickson and Seberang Perai Tengah, he said.
Anwar added that 30 PRRs are expected to be completed by the end of 2025, housing 17,500 people.
He also announced a RM200 million allocation to replace outdated elevators in People's Housing Projects (PPRs).