A government backbencher today proposed to the government to abolish the 10 per cent down payment on home purchase for young buyers, especially those who have only been working for 10 years or less.

Datuk Irmohizam Ibrahim (BN-Kuala Selangor) said the main restriction element for the young buyers to buy a house was to get cash money and the abolishment of the down payment was seen to be able to alleviate their burden.

He said if the down payment were to be abolished, these young buyers could use their savings from their Employees Provident Fund (EPF) Account 2 to pay the legal fees and housing insurance.

"The abolishment of the down payment will help the young people to own an affordable house despite their limited financial capability," he said when debating the Supply Bill 2015 at the Dewan Rakyat sitting.

He said besides the 10 per cent down payment, house buyers were usually requested to pay the legal fee of between RM7,000 and RM10,000 for the sale and purchase agreement and another RM20,000 for housing insurance.

Meanwhile, Datuk Shamsul Anuar Nasarah (BN-Lenggong) proposed to the government to create a savings scheme as a long-term mechanism to help the young people to buy a house.

"If possible, why don't we create a housing savings scheme and encourage schoolchildren to save their money under that scheme. When they are older, they will have money to buy a house," he said.