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Young Home Financing Scheme (SPPM)?

What is the Young Home Financing Scheme (SPPM)?

In the Budget 2025 presentation by the Prime Minister on October 18, 2024, through Initiative 60: Public Servants' Well-Being, LPPSA will offer an opportunity for LPPSA customers aged 30 and below to own property with an extended financing period of up to a maximum of 40 years. This facility will take effect on April 1, 2025.

This initiative aims to provide young public sector employees (aged 30 and below) with the opportunity to own more comfortable property with lower monthly repayments over a longer financing tenure of up to a maximum of 40 years.

What are the eligibility criteria for the Young Home Financing Scheme (SPPM)?

The implementation of this financing facility is subject to the following conditions :

A. Meeting the eligibility criteria as an applicant.
i. Public sector employees eligible to apply for LPPSA home financing;
ii. Aged 30 years and below at the time of application;
iii. Financing tenure based on the following service schemes:

• Pension Scheme:
Maximum 40 years (480 months) or until the age of 90, whichever comes first

• EPF Scheme:
Maximum 40 years (480 months) or limited to the retirement age, whichever comes first.

What are the features of the Young Home Financing Scheme (SPPM)?

The Young Home Financing Scheme includes the following features:

SPPM
Basic Eligibility Requirements
  1. Malaysian citizen;
  2. Individuals who qualify as per LPPSA’s definition and must be:
    1. A permanent officer currently in service; and
    2. Have served for at least one (1) year and have been confirmed in their position.
    3. Not declared bankrupt, not under financial restrictions, not facing disciplinary action leading to dismissal.
Financing Amount Up to RM750,000.00 (maximum)
* Subject to eligibility
Financing Margin 100%
Scope of Financing
    • Property Price
    • MRTA/MRTT Protection
    • LTHO Protection
Financing Tenure First-Time Financing
Maximum of 40 years or until 90 years old, whichever comes first.
Jenis Pembiayaan • Type 1
Purchase of a Completed House.
• Type 2
Build House on Own Land.
• Type 3
Purchase of House Under Construction.
• Type 5
(House) Home Financing Settlement with Bank/ Financial Institutions (Refinancing)
• Type 6
Build House on Land Currently Financed Through the LPPSA Financing.
Interest Rate 4 %
(Calculation based on reducing balance rate)
MRTA/MRTT Protection Mandatory
LTHO Protection Mandatory
Property Valuation Valuation and Property Services Department (JPPH)
Collateral First Charge
Repayment Method Salary or pension deduction

What is the application process flow for the Young Home Financing Scheme (SPPM)?

The application process for the Young Home Financing Scheme (SPPM) follows the same process as the existing LPPSA home financing application. Please refer to the Financing Process Flow Chart at the following link: https://myfinancing.lppsa.gov.my/my/proses-pembiayaan

* Subject to change

How can I learn more about the Young Home Financing Scheme (SPPM)?

Please contact us via the LPPSA e-Ticket Portal at: e-Tiket