Valuation for Goverment Housing Loan

VALUATION FOR GOVERNMENT HOUSING LOAN

INTRODUCTION

  • Government servants are entitled for government housing loans. This facility also extends to employees of Statutory Bodies and Local Authorities.
  • The amount of  loan approved is based on the loan eligibility/ house  price/ amount applied/ outstanding bank loan/  market value, whichever is the lower.
  • For the First Housing Loan : The monthly installment does not exceed 60% of the basic salary and fixed allowance, and the amount of debt does not exceed 80% of net income. Net income for all borrowers are at least 20% of the gross income.
  • For the Second Housing Loan : The monthly installment does not exceed 50% of the basic salary and fixed allowance, and the amount of debt does not exceed 80% of net income. Net income for all borrowers are at least 20% of the gross income.

ROLE OF THE VALUATION AND PROPERTY SERVICES DEPARTMENT OF MALAYSIA  (JPPH MALAYSIA)      

JPPH Malaysia provides valuation services to Housing Loan Division (HLD) of the Treasury:

  • Determine the market value of the property for the purpose housing loan and fire insurance.
  • Verify the construction stage of the property for the purpose of progress payment.
  • Certify the completion of additional/  renovation work  for progress payment.
  • Determine the market value of  the  property purchased through the government housing loan for Civil Suits (auctions).

TYPES OF HOUSING LOAN

There are seven (7) types of housing loan as follows:

PROGRESS PAYMENT

  • Progress payments are only applicable to Housing Loans Types II,III,VI and VII.  Payment will be made based on the work/construction progress.
  • The applicant must submit to JPPH Malaysia a claim on the progress/completion of  work  and a  copy  to  HLD for further action.  The progress of work has to be inspected and verified before the payment can be recommended

SECOND HOUSING LOAN

  • Applicant has settled their first housing loan
  • The applicant for a second housing loan is not entitled to apply Type VII.

HOUSING LOAN FOR ADDITIONAL WORKS/RENOVATION

  • Cost of additional works should be valued by JPPH Malaysia
  • The application for additional works must be submitted together with the application for housing loan.

RENOVATION

  • Application for renovation purposes are only allowed after (5) years from date of approval for Type I and IV.
  • Application for renovation loan can only be approved for houses purchased by government housing loan and the building plan has to be approved by the Local Authority. (Renovation work allowed is limited to the extension of building area only)
  • Application for renovation loan must be made using Form 9- Amended.
  • The loan approval is subject to condition laid down by HLD

PAYMENT FOR ADDITIONAL WORKS/RENOVATION

  • The applicant must send  a letter to JPPH Malaysia and  a copy  to HLD to  inform  the  progress/  completion of  the  additional  works/renovation.
  • The letter of claim for progress must be made using Form 9-Ammenmend and certified by the contractor and applicant.
  • The additional works/renovation will be inspected and verified by JPPH Malaysia before recommended is made to the HLD for payment.

SUBMISSION TO JPPH MALAYSIA

  • Applicants must complete 2 sets of application forms for HLD and JPPH Malaysia respectively.
  • For valuation application to JPPH Malaysia, the application must submit the following documents: –
    • Complete application form
    • Letter from the Head of Department.
    • A copy of title;
    • Copy of Sale and Purchase Agreement; and
    • Copy of Floor Plan / Building Plan
  • Application forms must be submitted to the JPPH Malaysia branch where the property is    JPPH Malaysia  will carry  out  the  valuation and submit the valuation report via email to HLD

 VALUATION FEE

  • No fee is charged if the applicant is a government servant.
  • However, for employees of Statutory Bodies and Local Authorities applying housing loans other than government housing loans,fee will be charges

CLIENT’S CHARTER

Valuation for housing loans  will be completed within eight(8) days working day upon receipt by the office

ENQUIRY

The applicant may enquire the status of the valuation via http://www.jpph.gov.my by key in the applicant’s IC number and/or sms type JPPH <space>PINJAMAN<space> I.C. No.<space> Email and send to 15888

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