Zero Deposit Scheme: Your Land Is Your Deposit
No need to save tens of thousands of ringgit in cash to get started. The land you already own acts as your equity, so you can build without a cash deposit to the contractor. We also say honestly what you still have to pay — so there are no surprises later.
- Cash deposit to us
- RM0
- LPPSA rate
- 4.00% fixed
- Bank margin
- up to 90%
How it actually works
When you buy a house from a developer, you need a deposit because you own nothing in the transaction — the bank finances 90% and you cover 10%.
Building on your own land is fundamentally different. You already own the land, and the land has value. The financier values the completed property (land plus house), then finances up to the permitted margin. Because your land's value is already in that equation, the part you have to “cover” is often already covered — without a single new sen of cash.
A simple example
Your land is valued at RM150,000. The build costs RM400,000. The completed property is estimated at RM550,000. At a 90% margin, the bank can finance up to RM495,000 — more than the RM400,000 build cost. The remaining 10% is treated as covered by your land equity, so no cash deposit is needed to start building.
These figures are illustrative. The real valuation is done by a registered valuer, and the margin is set by the financier.
For civil servants, LPPSA makes it simpler still: it finances the build cost up to a limit of RM1,000,000 at a fixed 4.00%, and disbursements are made against progress claims directly to the contractor.
What you still have to pay
This is the part usually left out of “zero deposit” adverts. None of it is paid to us — these are third-party costs — but it is real money and you should plan for it.
- Legal fees & stamp duty
- The financing and charge documents involve legal fees and stamp duty. Some banks offer packages that absorb these costs; ask specifically.
- Property valuation
- Banks need a report from a registered valuer. LPPSA has its own valuation process.
- Outstanding quit rent
- Any quit rent arrears must be settled before the council submission and before the financing is approved.
- Insurance
- Fire insurance and usually mortgage reducing insurance (MRTA/MRTT) or the equivalent takaful.
- Items outside the scope
- Fencing, landscaping, air-conditioning and furniture are not covered by construction financing, so they come out of your pocket after handover.
The rough total for legal fees, stamp duty, valuation and insurance is usually a few thousand ringgit, not tens of thousands. We do not give an exact figure here because it depends on the financing amount, the bank's package and the law firm — but we will tell you the real estimate at quotation stage, before you commit.
Free guide, in Malay
Panduan Mudah: LPPSA Financing for Civil Servants
Our team's 36-page guide: the seven types of LPPSA financing, who qualifies, the documents, takaful cover and legal fees, in plain Malay.
Download the guide (PDF, 5.3 MB)Written in November 2025, the book gives the old RM750,000 limit. LPPSA has since announced RM1,000,000.
Financing through our panel
Golden Sharp Innovation (IP0580950-X) is a registered panel contractor with the institutions above. Panel status means our credentials as a contractor have been assessed, and our progress-claim documents follow the format these institutions expect — it is not a guarantee that your financing will be approved, and not an endorsement of our services by them. Approval and terms are determined entirely by LPPSA or the bank concerned. Logos and trademarks are the property of their respective owners.
Who qualifies
- Land in your name. Individual or joint title, not an inheritance that has not been divided.
- A land category and conditions that allow a home. Agricultural land needs its conditions changed first.
- Enough income for the instalments. No deposit does not mean no income check — the DSR and instalment caps still apply.
- A clean credit record. CCRIS and CTOS are checked. Active arrears are the most common reason for being turned down.
- Registered road access to the site. Without it, the plans will not be approved.
Two of these five you can check yourself right now: land readiness and financing eligibility.
Frequently asked
So is “zero deposit” true or not?
How much does the land need to be worth?
Does LPPSA offer this too?
Can I use family land that is not in my name?
What is the real risk of this scheme?
Check whether it works for you
Tell us your land's location and size, and your approximate income. We work out whether this scheme really covers the build you want — and tell you if it does not.