Government servants are entitled for government housing loans. This loan facility also extends to employees of Statutory Bodies and Local Authorities. Treasury Circular PP No. 5 of 2011 covers all aspects of eligibility and entitlement.
The amount of loan approved is based on the loan eligibility/house price/ amount applied/ outstanding bank loan/ market value, whichever is the lower.
For the first loan, it is subject to the monthly payment not exceeding 60% of the current basic pay, whilst for the second loan it is subject to the monthly payment not exceeding 50% of the estimated monthly pension received based on the current basic pay. Government loan also includes valuation terms.
Role of Valuation and property services department (JPPH)
JPPH provides valuation services to the Housing Loan Division (HLD) of the Treasury:
- Determine the market value of the property for the purpose of housing loan and fire insurance
- Verify the construction stage of the property for the purpose of progress payment
- Certify the completion of additional / renovation work for progress payment
- Determine the market value of the property purchased through the government housing loan for Civil Suits (Auctions)
Housing loan Funding
Funding for a housing loan can be done either by the conventional way or by adopting Islamic principles using different sets of application forms.
Types of Housing Loan
There are seven types of housing loan as follows:
- Type 1
Purchase of a completed house or residential parcel
- Type 2
Construction of a house on land belonging to the applicant
- Type 3
Purchase of a house or residential parcel under construction
- Type 4
Purchase of land for the purpose of constructing a house
- Type 5
- Redemption of an existing loan from a bank financial institution
- Type 6
Construction of a house on the applicant’s land which has been purchased by a government housing loan
- Type 7
Renovation of a house
The application must complete two sets of application form, one set for HLD and another for JPPH. The application must be accompanied by a covering letter from the applicants Head of Department.
How to submit loan application
Application forms must be submitted to the JPPH branch where the property is located. JPPH will eventually carry out the valuation and submit the valuation report via email to HLD.
You can also enquiry the application status
The applicant may enquire the status of the valuation via http://jpph.gov.my by keying in the applicant IC number or sms type JPPH <space> Pinjaman <space> I.C No. <space> Email and send to 15888
Second Housing Loan can be applied as long applicant completes:
- Applicant has settled their first housing loan
- Applicant applying for a second housing loan is not entitled to apply for Type 5
- The amount of loan entitlement for a second loan is based on the difference between the current eligibility and the amount that has been taken on the first loan subject to the monthly payment not exceeding 50% of the estimated monthly pension received based on the current basic pay
For Type 4 the amount eligibility must not exceed 50% of the balance of the current eligibility. The maximum period for repayment is 300 months o the balance of the period of service for those under EPF Scheme.
Incase applicant need financing for additional works
- The amount of loan must not exceed RM20K
- The total amount for cost of building and additional works must not exceed the maximum eligibility
No fee is charged for valuation if the applicant is a government servant. However, fee will be charged for valuation done for employees of Statutory Bodies and Local Authorities.
Here is the process for government loan application
- Applicant needs a loan
- Applicant applies with Head Department
- JPPH Valuation Report within 8 working days
- Applicant get the loan