November 13, KUANTAN – The recent move by the Public Sector Home Financing Board (LPPSA) to tighten housing loan eligibility requirements for civil servants may restrict their chances of owning a house.
Malaysian Property Legal Association (HartaGuam) deputy chairman, Salkukhairi Abd Sukor said the move seemed to be contradicting the government’s policy of encouraging people to own a house.
“With the move, civil servants are only eligible to apply for home financing based on their net pay.
“In addition, the LPPSA also requires applicants to enter into a sale and purchase agreement before they can apply for financing.
“Obviously, it is detrimental because if the application is not approved due to the new requirements, the applicant is already bound to the terms and conditions of the sale and purchase agreement such as paying the deposit and so on,” he said in a statement, here.
The LPPSA had issued a circular, effective Oct 1, that stipulates an estimate of the repayment of home financing and the deduction shall not exceed 60 per cent of the applicant’s gross salary.