LPPSA aims to issue RM10bn of housing loan finance this year

PUTRAJAYA: The Public Sector Housing Finance Authority (LPPSA) aims to issue housing loan finance of RM10 billion to around 40,000 new borrowers this year.

LPPSA Managing Director Mohd Farid Nawawi said that for the first six months of this year, a total of RM6 billion in housing loan finance had been issued to 18,168 borrowers.

“We are confident that the target of RM10 billion in home loan finance this year can be achieved based on the current trend where since we operate in 2016 the amount of finance issued has not increased. between RM11 billion and RM12 billion.

“We have this data, so we have a projection of the (target) funding amount each year,” he told the media after the signing ceremony of the Memorandum of Understanding (MoU) between LPPSA 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 in the presence of Mohd Farid and Chairman and Chief Executive Officer of Bank Muamalat, Khairul Kamarudin.

Regarding the MoU, Mohd Farid said that Bank Muamalat is the third bank after Bank Islam Malaysia Bhd and Bank Simpanan Nasional, which has partnered with LPPSA to allow officials to finance housing loans beyond qualifications. stipulated.

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

Meanwhile, Khairul said Muamalat Bank has allocated up to 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 sum differential.

“Through this ‘Second Mortgage’ housing finance, the bank will provide additional housing finance for the purchase of a dream home to supplement the housing finance that has been approved by LPPSA.

“Through this MoU, Muamalat Bank offers up to 90% headroom for potential home buyers, and in addition to related costs such as Mortgage Tier Takaful (MRTT), legal fees and Long Term Proprietary Takaful (LTHT). ) can be funded through this housing finance,” he said.

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

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