• 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.

    House loan for Government employees

    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.

    Compare and Apply for best Housing Loan Online

    News About Housing Loan for Government Employees

    • Several new home measures proposed under Union Budget 2019

      New proposals for government initiatives in the government’s real estate sector has been welcomed by industry players. The Malaysian government plans to introduce a 5% to 10% real property gains tax on houses costing more than RM200,000. It also includes an increase in stamp duty charges for residential properties to 4% for houses priced above RM1 million. Real Estate and Housing Developers’ Association (REHDA) President Soam Heng Choon applauded the National Home Ownership Campaign as a great measure for managing unsold residential units.

      The stamp duty exemption as planned for houses priced up to RM500,000 along with the Fund for Affordable Homes costing RM1 billion shall support new homebuyers. It shall help those who have a minimum income of RM2,300 and below to get affordable houses. These include houses costing RM150,000 which is offered at a low interest rate of 3.5% p.a. The additional allocation of RM25 million to Cagamas shall also increase property purchases. Cagamas provides mortgage guarantee to first-time buyers who earn RM5,000 a month.

      With an increase in the loan tenure from 30 to 35 years for first financing, the Public Sector Home Financing Board will help people who have outstanding loan amounts to pay off. The government allocation of RM1.5 billion for affordable housing projects such as People’s Housing Programme, Malaysia Civil Servants Housing Programme, PR1MA, and Syarikat Perumahan Nasional Bhd also increase the affordable houses available in the market.

      BBazaar Malaysia

      15th November 2018

    • Selangor Government requests Bank Negara to liberalise loan requirements for first-time home buyers

      The Selangor Government has approached the central bank to discuss how to make loan requirements for individuals under the Rumah Selangorku scheme less stringent.

      Individuals under the scheme, especially those who earn less than RM5,000 a month, are unable to purchase a home as their loan doesn’t get approved easily. With the increase in household debt in the country, the central bank has been taking steps to implement more stringent rules as far as the housing schemes are concerned.

      Haniza Mohamed Talha, the Executive Councillor for Housing and Urban Living, stated that the Selangor Government is assessing a proposal, which will help first-time buyers purchase a home with the help of a collateral, which will be provided by the government to the bank.

      If the individual is eligible, the state government would offer 10% of the property price as collateral. Currently, two banks have been shortlisted to participate in the programme. Once the bank is on board, the state government hopes that more banks will also start providing the service.

      As of now the Rumah Selangorku scheme has started more than 50 projects and have offered loans to more people than their target of 15,000 homes.

      BBazaar Malaysia

      9th October 2018

    • Developers Want the National Housing Policy to Help the Home Loan Policies

      The Malaysian government is all set to announce the long awaited National Housing Policy in this month. The policy that is expected to help the lower income earning groups in the country, has also been eagerly anticipated amongst the builders and developers.

      While talking about this imminent change in the Malaysian housing industry, Tan Sri Lim Hock San, managing director of LBS Bina Group expresses that the policy should offer some comfort for the mortgage rules in the country as the first-time home-buyers are finding it difficult to meet the eligibility and terms of home loan approvals.

      He asserted that the financing guideline need to be more flexible and the government along with the Bank Negara Malaysia (BNM) should also provide some additional incentives. Furthermore, he also praised the government’s move to exempt the Sales and Service Tax (SST) on the construction materials.

      Through the National Housing Policy, the B40 (bottom 40% income earners) and M40 (middle 40% income earners) groups are expected to be benefitted, as specified by the Housing Minister Zuraida Kamaruddin. The six ministries that will come under the ministry include Syarikat Perumahan Negara Bhd, 1Malaysia Public Housing, UDA, Perumahan Penjawat Awam Malaysia (PPA1M), Rumah WIP, and PR1MA.

      BBazaar Malaysia

      19th September 2018

    • EPF Could Facilitate Financing for Affordable Housing—HBA

      The National House Buyers Association (HBA) recommended the government to allow EPF withdrawals for the purpose of financing affordable home purchases, reports suggest. The proposal would be helpful for those who are not able to get financing easily from banks.

      The first proposal of HBA says that the EPF must disburse financing for a tenure of 10 to 20 years for those who are earning RM5,000 or less; if they have contributed to the EPF account for a minimum of 5 years.

      HBA also suggested preventing misuse of the affordable housing facility. The body proposed a policy where the houses come with a lock-in period of 10 years.

      The importance of an insurance was also discussed. HBA suggested that the EPF can buy an insurance with endowment benefits, such as an MRTA or an MLTA. The idea is useful because an MRTA policy takes care of the loan in case the applicant could not repay.

      On the similar lines, an MLTA policy takes care of the applicant’s dependents if he/she cannot repay the loan due to an injury/death. If EPF pays the insurance premium, the bonus earned from the endowment account can be credited to the applicant’s account.

      HBA says that the borrowed money would be paid back by the applicant the same way as repaying a bank loan.

      BBazaar Malaysia

      25 July 2018

    • Public housing tenants to be granted 30% refund

      Ministry of Housing and Local Government (KTPT) is in the process of applying the SelangorKu model in the country in order to ease home ownership amongst public housing tenants.

      As per the scheme, 30% refund will be granted to a tenant who is moving out of a government unit, provided that they have rented the unit between 2 to 5 years. This sum could help them pay off the down payment of their next rented house without any hassle.

      According to the Minister of Housing and Local Government, Zuraida Kamaruddin, they will have a meeting held with Bank Negara and the Treasury in order to discuss this scheme in detail. Zuraida says that she is aware of the plight of young people whose home loans are being rejected, as they are blacklisted by PTPTN, making home ownership quite difficult for them.  

      She is of the opinion that if they have extra income from part-time jobs, or have their families to back them up, the banks will be able to provide them the loan they are looking for.

      Zuraida later received a donation of RM100,000 from GD Holdings' Executive Chairman, Datuk Seri Yeat Sew Chuong.

      BBazaar Malaysia

      27 June 2018

    • Pakatan Harapan—The New Government Promises To Make Housing Affordable

      Pakatan Harapan won the 14th General Elections and formed the new government in Malaysia. In the manifesto, Pakatan proposes a number of ways to realise the affordable housing plan. The promises made by Pakatan include, building 1 million affordable homes across the country in a period of two terms of the government.

      Pakatan assures to establish a special housing loan dedicated to youth. This new loan scheme will help the young generation buy their first property without hassle. Pakatan also proposed that it would remove the maintenance costs in areas involving low-cost housing to encourage more people to buy houses.

      The political party plans to set up a National Affordable Housing Council led by the Prime Minister. This initiative will be administering the work of all the agencies and keeps track of unsold affordable houses. A rent-to-own scheme would be initiated on these unsold houses to connect them with M40 and B40 groups.

      Another proposal says that the PR1MA programme would be reconsidered such that developers cannot make illegitimate profits from selling the houses built on the government land bought at discounted prices.

      BBazaar Malaysia

      15th May 2018

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