FAQ | LPPSA

If the borrower has a qualifying balance of RM200,000, can the borrower apply for housing financing a second time to buy a new property of RM150,000 and the remaining RM50,000 to do house renovation work?

No. For the second financing application, the borrower is only allowed to choose whether to buy real estate or home renovation work only and it is subject to the second financing conditions.

For joint loan, can the spouse who has completed the financing fully make a second financing if the couple's account still has the financing balance?

Yes.

What are the main conditions set to qualify a person to apply for a second loan?

a) The balance of the first financing debt is fully settled.
b) The second financing qualification is subject to monthly installments not exceeding 50% of the current actual salary.

Can the borrower mortgage the property purchased through LPPSA housing financing to the bank for the purpose of making enough money?

Properties that have been mortgaged to LPPSA are allowed to be mortgaged to financial institutions to cover the difference on the condition that:

i. the financial institution/ agency agrees to be the second lien holder; and
i. for properties that have Individual/ Strata Ownership only. If ownership of real estate is in transfer status is not allowed

Can the borrower apply for first and second financing to build a house on the same lot of land?

It is not possible because housing financing to build a house is only allowed to build a house on one lot of land.

If the borrower has settled the first financing and pledged the property to the bank for personal purposes, is the second financing application allowed to redeem the financing debt with the bank.

No.

If the borrower's spouse resigns, is the borrower eligible to take LPPSA housing financing to settle the balance of their spouse's financing debt.

Can be considered provided the borrowing spouse agrees to transfer the property at least in part or in full to the borrower’s name

Can the borrower take over the financing of the resigning spouse if the installment payment has not been issued 100% or the house is still in progress?

If the spouse chooses to retire optionally, is the spouse eligible to take over his or her housing financing?

Can be considered.

Can housing financing involved with abandoned / problematic projects approved by the Ministry of Housing and Local Government (KPKT) / Valuation and Property Services Department (JPPH) / State Secretary (SUK) as related be canceled and borrowers apply for new housing financing to purchase another house.

Can be considered.

Does LPPSA allow the application for financing to purchase land on which there is any form of residential house construction?

No.

Does LPPSA allow housing financing applications to purchase houses developed on other individual land?

Yes, provided the sale and purchase agreement is signed by three (3) parties, namely the landlord, buyer and seller / developer or submit a letter of authority from the landlord.

Does LPPSA allow housing financing applications to buy land and build houses simultaneously?

No. Land purchase financing application must be submitted in advance. Home building financing applications can be applied for after the Salary Deduction Instruction for land financing has been issued.

Applicant has purchased a piece of land through Type 4 housing financing. Can the applicant apply for housing financing a second time to purchase new property?

Yes, provided it is necessary to settle the previous land financing debt.

The applicant has purchased a piece of land through conventional Type 4 housing financing (SPPSA). Can the applicant obtain housing construction financing (Type 6) by using Islamic financing (SPPSAi)?

No.

How long is the maximum period for financing to build a house (Type 6) after the financing application for the purchase of land (Type 4) is approved?

The period for type 6 financing is a) 360 months; or b) up to the age of 90 for the pension / termination scheme for the EPF scheme; or any of the foregoing including the repayment period of the Type 4 financing that has been used.

First and Second Home Financing