PUTRAJAYA: The Public Sector Home Financing Board (LPSSA) is working with MBSB Bank Bhd to provide a joint financial scheme for public sector employees to buy their first home.

Both LPPSA and MBSB signed a memorandum of understanding (MoU) on Thursday, to work on a scheme that would allow joint mortgages for spouses or parents and children to purchase a house, provided that at least one of the joint applicants is a public sector employee.

“It is the first time for LPPSA to collaborate with a commercial bank such as MBSB for civil servant housing loans.

“We hope that the scheme to be ready within this year. Right now we are working out on the details,” he told reporters at a press conference after the signing ceremony.

Under the MoU, LPPSA and MBSB Bank will offer two loan categories for the scheme — financing for completed houses and houses under construction.

MBSB is targeting to disbursed about RM500mil loans under the scheme spanning over three years.

“We could increase the loan amount depending on the demand and performance,” said MBSB president and chief executive officer Datuk Seri Ahmad Zaini Othman.

Under the planned scheme, LPPSA would be providing the loans for the civil servants, while MBSB would finance the differential amount to the joint applicants who work in the private sector.