LPPSA Financing Types 1–7
LPPSA has seven financing types, and repayment starts differently depending on the type. Here is the plain-English version — verify with LPPSA.
Quick answer
LPPSA offers seven financing types: (1) completed house/subsale, (2) build on own land, (3) under-construction house from a developer, (4) buy land, (5) settle/refinance an existing housing loan, (6) buy land and build, and (7) renovation. Repayment start timing differs: completed/land/settlement types follow the disbursement date, while build/under-construction types start after 95% disbursement or month 25 from approval. These are general descriptions — verify the current types and rules with official LPPSA sources.
Key takeaways
- There are seven LPPSA financing types (1–7).
- Types 1, 4 and 5 are completed/land/settlement — repayment follows the disbursement date.
- Types 2, 3, 6 and 7 are build/under-construction-like — repayment starts after 95% disbursement or month 25.
- Always confirm the current type rules with LPPSA.
The seven types
- Type 1: completed house / subsale.
- Type 2: build a house on land you already own.
- Type 3: buy an under-construction house from a developer.
- Type 4: buy land.
- Type 5: settle or refinance an existing housing loan.
- Type 6: buy land and build a house.
- Type 7: renovation.
Why the type matters
Completed/land/settlement types (1, 4, 5) base repayment on the disbursement date. Build/under-construction types (2, 3, 6, 7) delay salary deduction until 95% disbursement or month 25 from approval, whichever is earlier — with no bank-style progressive interest in between.
Checklist
- Identify which LPPSA type fits your purchase.
- Check when repayment starts for that type.
- Confirm the current type rules with LPPSA.
Watch out for
- Type rules and conditions change — rely on official LPPSA information.
- Do not assume bank progressive-interest rules apply to LPPSA.
Frequently asked questions
Which LPPSA type is for an under-construction home?
Buying an under-construction house from a developer is generally Type 3, where repayment starts after 95% disbursement or month 25 from approval. Verify with LPPSA.
Can LPPSA settle my existing bank housing loan?
That is generally Type 5 (settle/refinance an existing housing loan). Confirm eligibility and the current process with LPPSA.
Related guides
When Does LPPSA Repayment Start?
LPPSA salary deduction does not always start the same way. Here is the general rule by financing type — always verify with LPPSA.
Read guideLPPSA vs Bank Progressive Payment (Under Construction)
For an under-construction home, LPPSA and a bank loan handle the construction period very differently. Here is the cashflow difference — verify with LPPSA.
Read guideWhat Is LPPSA?
LPPSA provides housing financing for Malaysian government servants. Here is the simple version and what to verify.
Read guideImportant
This content is for general education only. It is not legal, financial, banking, valuation, tax, investment, or property advice. Always verify with the relevant bank, lawyer, valuer, agent, developer, auctioneer, land office, LPPSA, LHDN, or authority before making decisions.
Last reviewed: 2026 edition · Rules, rates and fees change over time. Always confirm the latest figures with the relevant authority before you act.