Does anyone know the interest rate of the government home loan? Is it fixed or flexi?

I'm looking to get a loan (90%, 30-40 years) to buy an apartment around RM190k but I'm in a dilemma in choosing the better option;

1. Buy an apartment now with a bank loan. After 3 years from now, I will be eligible to get a subsidy from my company (TNB). If the interest rate is more than 4%, they will pay the rest of the interest. (assuming that I work with them till I retire)

2. Wait 1.5 years until my wife (who is a civil servant) is eligible to apply for government home loan which I don't know the policy and interest rate.



I will really really really really appreciate any advice.

http://forum.lowyat.net/index.php?showtopi...government+loan

The easiest is still to get your wife to ask from her seniors and you to check with your seniors also on TNB's loan. Then do a comparison.

IMO, government loan is always worth it. However, it's not "flexi". Cons is procedure might be a headache and slow. I remember my father in law's title in the end need to personally go down to Putrajaya to claim. Went there 3 times just to claim back the title.

u need to check what is yr wife job grade first.. they have diff set of loan amount based on staff's job grade..
govt loan stays at 4%.. and d gud news is, the interest will be calculated based on remaining balance that yr wife owe the govt.. (Reducing interest rate or I forgot ady what ppl call this type of loan)

btw, how sure r u yr wife hv to wait for 1.5 years because job confirmation is one thing but it meant nothing until she finally get the official confirmation letter which could be dragged even further by the HR dept..

This post has been edited by awiekupo: Jul 20 2010, 01:01 PM

4%? I thot it was 2%? Yes it is a conventional HL as oppose to a Flexi but why would you want to expedite the settlement if your cost of funds is fixed (not peg to BLR) and much cheaper then other banks.

This is one of the biggest incentive for a government servant and the smart ones manipulate it to the hilt.

yup bro.. 4%... if 2% dats even better! but i doubt it coz last time I check was still 4% wor...

thanks for the reply, people! Yes, I think it's 4% and I hope the policy doesn't change when my wife is ready to apply the loan. It worries me a bit that govt nowadays don't have much money so might change their policy if they want to.

Makes sense....knowing their lousy service (sorry if I'm too harsh), I'm not surprised if she has to wait several months for the confirmation letter.

This post has been edited by gjoy993: Jul 21 2010, 12:08 AM

Once she is confirmed, only official when she got the letter(normally backdated) then she is entitled to the loan. although it is 4% but the effective rate is around 2.3 % due to reducing balance.

TS, tumpang a bit .

My wife yet to be confirm, so now we are applying home loan from bank. It is possible to take the loan in future to settle the loan with the bank?

oh? so high?? i thought 1%

my father's housing loan is 1% hehee. maybe bcoz of long service..

I believe yr situation is almost similar like me, in fact my property oso around 190k.. lol.. except my wife just got the official appointment letter (but it kinda useless oso since I apply single loan)...

Home loan can be taken later...
Just apply for single loan if possible... (U might want to use yr wife home loan for other purpose.. eg: buy another property for investment)
Just wait till yr lock-in period over, then refinance the property using yr wife gomen loan to settle the loan with much smaller interest rate..

Easy peasy lemon squeezy.. but sifoo out there pls feel free to correct this newbie (me)...

ps/ Oooh.. forgot to mention.. gomen staff can apply home loan twice only if not mistaken.. and the amount for 1st loan is higher than the 2nd one.. so u might want to consider it very carefully on when to apply for this 1st loan (better apply for property that really requires very high amount of cash).. Alternatively, I think u can learn more by dropping by Jabatan Perbendaharaan Msia office..

This post has been edited by awiekupo: Jul 26 2010, 01:17 AM