LPPSA – Home Financing for Government Workers


Buying a property in Malaysia can present considerable challenges and obstacles such as loan rejections from financial institutions, but what alternatives are available to help you realize your dream of homeownership? 

If you’re a government worker or a civil servant looking to acquire a new property, this article is for you. Lembaga Pembiayaan Perumahaan Sektor Awam (LPPSA), also known as the Public Sector Home Financing Board, offers a housing loan initiative that bridges the gap between property prices and the approved loan amount, lowering the barrier for government workers to own a home. 

There are seven types of LPPSA loans catered to different financing needs. Every loan applicant must fill up an application form to initiate the loan application process. Eligibility reviews for LPPSA loans are conducted based on the applicant’s salary statement, without considering any external commitments such as other outstanding bank loans.


What are the Benefits of LPPSA Financing?

Civil servants can enjoy these benefits from LPPSA Financing:

  • Up to 100% financing margin (regardless of number of properties or land owned prior),
  • Fixed interest rate of 4% per annum,
  • Deductions from salaries are not considered as commitments,
  • Eligible to apply for housing loans under LPPSA twice (provided first house is already settled),
  • Loan term up to 90 years of age.


Who is Eligible to Apply for LPPSA? 

Examples of civil servants who are eligible to apply include:

  • Members of the civil service,
  • Police,
  • Military,
  • State Administration,
  • Federal Administration,
  • Members of State Legislative Assembly,
  • Member of Parliament,
  • Judges,
  • Statutory bodies,
  • Local Authorities,
  • State Governments

How Much Can I Borrow Based on My Monthly Salary? 

You can determine the eligibility of financing amount by using the Financing Calculator provided on the LPPSA website. Based on the LPPSA financing eligibility schedule, the monthly instalment for loan repayment should not exceed 60% of your net income, and your total debt should not exceed 80% of your net income.


What is the Application Process for LPPSA?

Generally, once you have determined your financing eligibility, you may follow the LPPSA financing process below:

  1. Online application and offer acceptance
  2. Processing and approval
  3. Property collateral with the institution
  4. Payment of insurance premiums
  5. Disbursement of funds
  6. Repayment of financing
  7. Monitoring and recovery from defaulting borrowers (if applicable)
  8. Complete financing settlement
  9. Return of property ownership documents
  10. Balance repayment and account closure

The documents that need to be prepared and fully completed for applications in the public sector housing financing are as follows:

  • Application form
  • Takaful protection agreement (only for takaful panel selection)
  • Approval letter for the settlement of public sector housing financing debt
  • All necessary supporting documents

After the application is submitted, the financing approval process will take approximately 6-21 days, depending on the type of loan applied for. Incomplete documentation may result in a rejection of the application, so ensure that all information is accurately updated!


Want to Know More? Let Us Help!

You may visit the official LPPSA website to know more. Alternatively, you may also speak to our sales team and they will assist you in finding the right financing options for your new home!

WhatsApp: 012 322 8860

Hotline: 082 288 860

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