Bank Negara Malaysia has launched an RM1 billion fund aimed at helping low-income Malaysians obtain loans to purchase their first home.

Under the “Fund for Affordable Homes” scheme, Malaysians with a household monthly income of RM2,300 and below are eligible for loans with a financing rate capped at 3.5 percent per annum for residential properties priced RM150,000 and below.

The five participating banks are AmBank, Bank Simpanan Nasional, CIMB, Maybank and RHB...