diff --git a/builtin/init-db.c b/builtin/init-db.c
index 587a5055ed..aab44d2e45 100644
--- a/builtin/init-db.c
+++ b/builtin/init-db.c
@@ -254,7 +254,8 @@ static int create_default_files(const char *template_path)
 		struct stat st2;
 		filemode = (!chmod(path, st1.st_mode ^ S_IXUSR) &&
 				!lstat(path, &st2) &&
-				st1.st_mode != st2.st_mode);
+				st1.st_mode != st2.st_mode &&
+				!chmod(path, st1.st_mode));
 	}
 	git_config_set("core.filemode", filemode ? "true" : "false");
 
diff --git a/t/t0001-init.sh b/t/t0001-init.sh
index e62c0ffbc2..7de8d85ee8 100755
--- a/t/t0001-init.sh
+++ b/t/t0001-init.sh
@@ -12,6 +12,13 @@ check_config () {
 		echo "expected a directory $1, a file $1/config and $1/refs"
 		return 1
 	fi
+
+	if test_have_prereq POSIXPERM && test -x "$1/config"
+	then
+		echo "$1/config is executable?"
+		return 1
+	fi
+
 	bare=$(cd "$1" && git config --bool core.bare)
 	worktree=$(cd "$1" && git config core.worktree) ||
 	worktree=unset