Govt looks to issue RM10 bil in housing loan financing this year

PUTRAJAYA – The Public Sector Housing Financing Authority (LPPSA) aims to issue housing loan financing of RM10 billion this year to approximately 40,000 new borrowers.

Chief executive officer Mohd Farid Nawawi said for the first six months of this year, a total of RM6 billion in housing loan financing had been issued to 18,168 borrowers.

“We are confident that the target of RM10 billion in housing loan financing this year can be achieved based on the current trend, as since we have been operating in 2016, the amount of financing issued has not run between RM11 billion and RM12 billion.

“We have that data, so we have a projection for how much funding (we are targeting for) each year,” he told the media after the memorandum of understanding signing ceremony between the authority and Bank Muamalat Malaysia Bhd here today.

The MoU was signed by LPPSA chief operating officer Zuwardi Zubir and Muamalat Bank retail banking director Zury Rahimee Zainal Abiden, witnessed by Farid and Bank Muamalat president and chief executive officer Khairul Kamarudin.

Regarding the MoU, Farid said Bank Muamalat is the third bank after Bank Islam Malaysia Bhd and Bank Simpanan Nasional to partner with LPPSA and enable civil servants to finance housing loans beyond the stipulated qualifications.

“Sometimes when civil servants want to buy a house, their qualifications are not enough. With rules like these, the qualifications will be easier for civil servants because it allows not only civil servants but their spouses and children to live together and finance their dream home,” he said.

Meanwhile, Khairul said Bank Muamalat has allocated as much as RM300 million to provide financing under the shariah-compliant concept of tawarruq for a period of one year under the initiative.

Under the MoU, qualified public sector employees and immediate family members can apply for financing from LPPSA and Bank Muamalat, who agree to be the holder of the second mortgage to settle the differential sum.

“Through second mortgage housing financing, the bank will provide additional housing financing for the purchase of a dream home to complete the housing financing approved by LPPSA.

“Through this MoU, Bank Muamalat offers a financing margin of up to 90% to potential home buyers, in addition to the payment of related costs such as the Mortgage Level Term Takaful, legal fees, and Long-Term Homeowner Takaful through this housing financing,” he said.

Khairul said among those eligible to apply under the initiative are currently serving permanent officers and those who have served for at least a year and have been confirmed in their position. – Bernama, July 27, 2022