Finance & First Homes
From 4 October 2026, civil servants can borrow more through LPPSA and take a second financing without settling the first. Here is what changed, checked against LPPSA’s own notice — and what each limit buys in Ipoh today.
Quick answer. From 4 October 2026 the LPPSA ceiling rises to RM1 million, set by your net income. The rate is 4.00% up to RM750,000 and 4.50% on the part above. A second financing no longer requires the first to be paid off. Civil servants aged 30 and below can also look at SPPM: up to RM750,000 at 4% with 100% financing.
Net income here means basic salary plus the fixed allowances LPPSA counts, minus compulsory deductions. The ceilings below are LPPSA’s; the last column counts how many of the 41 Ipoh projects on my list have an entry price within that ceiling.
| Net income | LPPSA ceiling | Projects within |
|---|---|---|
| RM3,000 | RM350,000 | 8 |
| RM4,000 | RM480,000 | 16 |
| RM5,000 | RM610,000 | 27 |
| RM6,000 | RM730,000 | 30 |
| RM7,000 | RM800,000 | 30 |
| RM8,000 | RM850,000 | 31 |
| RM10,000 | RM950,000 | 35 |
| Above RM10,000 | RM1,000,000 | 38 |
Selected rows from LPPSA’s table, which goes up in RM500 steps of net income, starting at RM280,000 for net income of RM2,500 or less. The ceiling is your maximum, not an approval — the affordability tests below still apply. Estimate yours with LPPSA’s SmartKira calculator.
4.00% a year on financing up to RM750,000 and 4.50% on the part between RM750,000 and RM1 million, combined into a single blended rate. On RM800,000 that is about 4.03%; on RM1 million about 4.13%. For a husband and wife applying together, each person’s rate is worked out separately.
The Skim Pembiayaan Perumahan Muda is for permanent civil servants aged 30 and below at application, confirmed in post with at least a year’s service: up to RM750,000, 4% on a reducing balance, 100% financing, over up to 40 years or to age 90. It opened on 1 April 2025 and LPPSA said it would run to 31 December 2026 — confirm it is still open when you apply.
An LPPSA approval covers the loan, not the other costs. Check the first-home stamp duty exemption if it is your first home, work out the rest on the upfront cost calculator, and remember that LPPSA requires insurance or takaful from its panel.
Sources: LPPSA notice and FAQ “Penambahbaikan Kemudahan Pembiayaan Perumahan Sektor Awam 2026” (25 September 2026, effective 4 October 2026); LPPSA SPPM and eligibility FAQ (myfinancing.lppsa.gov.my); Malay Mail on the SPPM extension. Confirm with LPPSA before you rely on any figure. General information, not financial advice.
Compiled and reviewed by MaSk Chan, REN 49335 · IQI Global.
From 4 October 2026 the maximum LPPSA financing rises to RM1 million, depending on your net income, and you can apply for a second financing without settling the first. Applications submitted before 4 October 2026 are processed under the limits in force when they were received.
It depends on your net income (basic salary plus the fixed allowances counted, minus compulsory deductions). Under the 2026 table, a net income of RM5,000 allows up to RM610,000, RM8,000 up to RM850,000, and above RM10,000 up to RM1 million — subject to the other eligibility conditions.
4.00% a year on financing up to RM750,000, and 4.50% on the part above RM750,000 up to RM1 million, blended into one rate. A RM800,000 financing works out at about 4.03%.
Yes, from 4 October 2026, if deductions for the first financing have started and it has no arrears. The second financing goes up to 90% while the first is still running, or up to 100% once the first is fully settled.
The Skim Pembiayaan Perumahan Muda is for permanent civil servants aged 30 and below who are confirmed and have served at least a year: up to RM750,000 at 4%, 100% financing, over up to 40 years or to age 90. It opened on 1 April 2025; LPPSA said it would run to 31 December 2026, so check it is still open before you apply.
Your monthly instalment must not exceed 60% of your basic salary and fixed allowances, your total debt must not exceed 80% of net income, and your net salary must stay at least 20% of gross. LPPSA’s SmartKira calculator gives an estimate.