• Housing Loan for Government Employees in Malaysia

    Government employees and employees of statutory bodies and local authorities are entitled to for government housing loans. The loan amount is based on the loan eligibility, price of the house, amount applied, outstanding bank loan and market value. The loan is subject to the monthly payment not exceeding 60% of the borrower’s current basic pay, this is if it is the first loan. If the borrower is applying for a second loan, then his monthly payment must not exceed 50% of the estimated monthly pension received on the current basic pay.

    Role of Valuation and Property Services Department

    The following is the role of Valuation and Property Services Department:

    • Determine the property’s market value.
    • Verify the construction stage of the property.
    • Certify the completion of the additional or renovation work for progress payment.
    • Market value of the property purchased through the government housing loan to be determined.

    Types of Housing Loan

    Following are the 7 types of housing loan available:

    • To purchase completed house or a residential house.
    • To construct a house on land that belongs to the applicant.
    • To purchase a house or a residential parcel under construction.
    • To purchase a land for purpose of constructing a house.
    • Redemption of existing loan from another lender.
    • Construction of house on the applicant’s land that was purchased with government housing loan.
    • To renovate a house.

    How to apply

    The applicant must fill up two sets of forms one for Housing Loan Division and another for the JPPH branch. The application must be submitted along with a cover letter from applicant’s head of the department.

    Applicant must also give full cooperation to JPPH to let them inspect the property. The house valuation will be completed in 8 working days upon receiving the application form.

    Applicant can enquire the status of his valuation online or through SMS.

    Progress payment

    Progress payments are applicable to housing loan of the following types:

    • To construct a house on land that belongs to the applicant.
    • To purchase a house or a residential parcel under construction.
    • Construction of house on the applicant’s land that was purchased with government housing loan.
    • To renovate a house.

    The payment is made based on the work progress. The applicant must submit the claim on progress or completion of work to JPPH and a copy to Housing Loan Division for further action. Before the payment is recommended, the progress of the work has to be inspected and verified.

    Second Housing Loan

    Applicant can apply for a second housing loan only after settling the first housing loan. The applicant cannot apply for constructing a house on land that belongs to the applicant for a second housing loan.

    The loan amount entitled for a second loan is based on the difference between the applicant’s current eligibility and the amount he took on the first loan subject to the monthly payment not exceeding 50% of the estimated monthly pension received based on his current pay.

    To purchase a land for purpose of constructing a house, eligibility amount must not exceed 50% of the balance of the current eligibility.

    Maximum period offered for repayment is 300 months or the balance of the period of service for those under EPF Scheme.

    Additional Works

    The loan amount must not exceed RM20,000. The total amount for cost of the building and any additional work must not exceed the maximum eligibility. The cost of additional cost must be valued by JPPH. The additional works’ application must be submitted along with the application for housing loan. The additional work must be done during the construction of the house or completed within 6 months after the completion of the house.

    Renovation of the House

    Application for renovation work is allowed only after 5 year from the date of approval of purchasing completed house or a residential house or purchasing a land for purpose of constructing a house. The renovation work application is allowed after 5 years from date of issuance of voucher for payment of 95% or 100% for constructing a house on land that belongs to the applicant or purchasing a house or a residential parcel under construction.

    The renovation work application can be approved for houses purchased by government housing loan and the building plan that has been approved by the local authority. The approval of the loan is subject to conditions laid down by Housing Loan Division.

    Additional work and renovation work payments

    Applicant must send a letter to JPPH and copy Housing Loan Division to inform the progress or completion of the additional or renovation work progress.

    The letter claim for progress payment is made using Form 9 amended and certified by the contractor and the applicant. JPPH will inspect and verify the work and then recommend Housing Loan Division for the payment.

    There is no fee charged for valuation if the applicant is a government servant. A certain valuation fee will be charged if the valuation is done for employees of Statutory Bodies and Local Authorities.

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