SJKP Housing Credit Guarantee Scheme: A Guide for First-Time Home Buyers in Malaysia

For some first-time buyers, the problem is not "I have no income". It is proving that income in the format a bank usually expects, especially if you are self-employed, a gig worker, on commission or on another non-fixed income.

Malaysia's Skim Jaminan Kredit Perumahan / Housing Credit Guarantee Scheme (SJKP/HCGS) is designed to help eligible first-home buyers obtain financing from participating financial institutions, backed by a government-linked guarantee. But SJKP is not an automatic loan approval, and you do not apply to SJKP as if it were the bank lending you the money.

Short answer

Under SJKP's current official HCGS information:

• applicants must be Malaysian citizens aged 18 or above, and joint financing is allowed;

• both non-fixed-income/self-employed and fixed-income earners fall within the eligible categories;

• the property must be your first residential home, whether new, sub-sale or bought at auction, for owner occupation;

• the HCGS financing limit is up to RM500,000, including the items SJKP lists within that limit;

• the participating financial institution sets the interest/profit rate and carries out the financing assessment; and

• you apply through a participating financial institution, not directly to SJKP.

Eligibility and approval remain subject to the current scheme terms and the bank's own assessment.

What is SJKP?

SJKP refers to Syarikat Jaminan Kredit Perumahan Berhad, which administers Malaysia's housing credit guarantee schemes. SJKP describes itself as a wholly owned company of the Minister of Finance (Incorporated), set up to provide guarantees for housing financing granted by participating financial institutions.

In practice, the participating bank provides the home financing, while SJKP provides the applicable guarantee to the bank under the scheme. That distinction matters: the bank still assesses you and sets the financing and product terms.

"SJKP is designed for people who struggle to obtain a loan because they lack formal income documents, such as small traders and the self-employed. The government guarantee reduces the bank's risk; it does not replace the buyer's responsibility to pay the instalments," says Akmal Saufi Mohamed Khaled, lawyer and principal of ASCOLAW (Messrs Akmal Saufi & Co).

Who can qualify for the HCGS?

SJKP's current eligibility page states that the scheme is open to:

• Malaysian citizens aged 18 and above;

• non-fixed-income earners or self-employed applicants;

• fixed-income earners; and

• joint financing applicants, subject to the current rules.

So SJKP should not be described as a scheme only for people without payslips. Non-fixed-income earners are an important target group, but fixed-income earners are also included.

What kind of property can you buy?

The HCGS is for your first residential house and can cover:

• a new house (newly completed or under construction);

• an existing sub-sale house; or

• a residential property bought at auction,

provided the property is intended for owner occupation and meets the scheme's current requirements.

SJKP's FAQ also states that the HCGS is not limited to government-agency projects and is open to purchases from private developers. It is not a commercial-property scheme, and SJKP's FAQ confirms that the HCGS does not guarantee refinancing.

What is the current HCGS financing limit?

As checked on SJKP's official scheme-features page, the HCGS financing limit is up to RM500,000. SJKP states that this limit includes the principal financing amount together with MRTA/MRTT, LTHO, the solicitor's fee and the valuation fee, subject to the scheme terms.

This does not mean every eligible applicant receives RM500,000, or 100% of a particular purchase price. The actual amount depends on the participating bank's assessment and the scheme's requirements.

SJKP also operates HCGS-MADANI, which has different limits and features. Do not combine HCGS and HCGS-MADANI figures as if they were one scheme.

How much does SJKP guarantee?

SJKP's scheme-features page states that the guarantee coverage can exceed 100% of the financing amount obtained from the participating bank, within the RM500,000 cap and the scheme terms.

This does not mean SJKP gives you extra cash. It describes the guarantee arrangement between SJKP and the bank. For you as the buyer, the practical questions remain:

• how much has the bank actually approved;

• how much of that goes towards the purchase price;

• which other costs are financed; and

• how much cash you still need to prepare.

Credit and repayment criteria

SJKP's eligibility page states, among other criteria:

• total repayment of all your loans must not exceed 65% of gross monthly income;

• CCRIS arrears must not be more than two months within the latest 12-month period; and

• there must be no other adverse credit records within the latest 24 months.

These are SJKP scheme criteria, not a universal debt service ratio (DSR) rule for every Malaysian home loan. The participating bank can still apply its own credit assessment and product requirements.

Does SJKP guarantee that the bank will approve me?

No. The scheme provides a guarantee framework for eligible financing, but the participating bank still assesses your application. Avoid telling a seller or agent that your financing is "confirmed" just because you appear to meet the headline SJKP criteria.

What documents should you prepare?

SJKP's official documents page lists examples including:

• property evidence: the SPA, booking sheet or down-payment receipt;

• income evidence: recent bank or deposit account statements where applicable, income-tax returns or EPF statements, and employment confirmation where applicable; and

• other supporting evidence: identification, a business licence or occupational evidence where applicable, and, for non-fixed-income earners, the declarations or confirmations of income the scheme currently requires.

The participating bank may ask for more. Do not treat SJKP's list as a promise that no further documents will be requested.

How do you apply?

At a high level, SJKP's process is:

1. identify the residential property you want to buy;

2. prepare your property and income documents;

3. choose a participating financial institution; and

4. submit your home-financing application through that institution under the applicable SJKP scheme.

SJKP's FAQ states that applications are made at any branch of a participating financial institution, not directly at SJKP's office.

Does SJKP charge the borrower a fee?

SJKP's FAQ states that no charge or fee is imposed by SJKP on the borrower. That does not make the whole purchase cost-free. Depending on the financing and the purchase, you may still face:

• legal fees;

• stamp duty;

• valuation charges;

• registration, search and disbursement costs;

• insurance or takaful costs; and

• the part of the purchase price you must fund yourself,

subject to what the bank financing actually includes.

Financing tenure and rate

SJKP's scheme-features page states a financing tenure of up to 35 years or the tenure of the financing, whichever is earlier, with two-generation financing allowed under the applicable terms. Do not assume you will receive the maximum tenure.

The interest or profit rate is as determined by the participating financial institution. There is no single SJKP rate, so compare actual bank offers and Product Disclosure Sheets.

SJKP and the legal side of the purchase

Even with an SJKP-guaranteed loan, you still have a normal property transaction to complete. In a sub-sale purchase, the lawyers may need to deal with:

• SPA completion dates;

• title searches;

• the seller's loan redemption;

• state consent and restrictions in interest;

• transfer documents;

• the bank's financing and security documents;

• any shortfall you must fund; and

• the bank's disbursement conditions.

For a developer purchase, the documents and payment sequence differ. SJKP eligibility does not replace any of these legal steps.

Before you pay a booking fee

1. Is this definitely my first residential home under the current SJKP criteria?

2. Is the property type eligible?

3. Which participating bank am I applying to?

4. Has the bank actually assessed my application, or am I assuming eligibility?

5. How much will the bank finance towards the purchase price?

6. How much cash must I provide myself?

7. What does the booking document say if the financing is not approved?

Appearing eligible for SJKP does not give you an automatic right to cancel a purchase if the bank later rejects or reduces the financing.

HCGS vs HCGS-MADANI

SJKP's website lists both HCGS and HCGS-MADANI. Treat them as separate scheme variants with their own features and financing limits: SJKP currently states a lower headline financing limit for HCGS-MADANI than the RM500,000 HCGS limit, and HCGS-MADANI defines its own financed costs. Always check which scheme your bank is using for your application.

How ASCOLAW can help

ASCOLAW does not decide SJKP eligibility or guarantee bank financing. Once you have a property and a financing route in view, ASCOLAW (Messrs Akmal Saufi & Co) can act on the legal side of the purchase and, where the firm is accepted or appointed by the relevant bank, on the financing documents. This can include:

• reviewing the booking form and preparing or reviewing the SPA;

• title and consent checks;

• financing and security documentation;

• coordinating the seller's loan redemption;

• transfer and registration steps; and

• progressing the file towards the bank's disbursement conditions.

If you have already identified a property, fill in the ASCOLAW enquiry form below with the price, location, type of purchase, the participating bank if known and where your financing and SPA currently stand.

Frequently asked questions

Is SJKP a loan or a guarantee?

A guarantee. The participating bank provides the financing; SJKP provides a guarantee to the bank under the scheme. The bank still assesses your application and sets the rate.

Can I apply for SJKP if I have a fixed salary?

Yes. SJKP's current eligibility criteria cover both non-fixed-income or self-employed applicants and fixed-income earners, provided you meet the other conditions.

Can I use SJKP for a sub-sale or auction property?

Yes, if it is your first residential home and will be owner-occupied. SJKP's eligibility page covers new, sub-sale and auction residential properties.

Can I refinance my house under SJKP?

No. SJKP's FAQ states that the HCGS does not provide a guarantee for refinancing.

Where do I apply?

At a branch of a participating financial institution. SJKP states that applications are not made directly at its office.

This article is general information only and is not legal or financial advice. It is based on SJKP's official information checked in September 2026. Scheme criteria, financing limits, participating institutions and product terms can change, so check SJKP's current website and your bank before relying on any figure. References to land and title procedures relate to Peninsular Malaysia; Sabah and Sarawak have separate land laws.

Related guides

• Home Loan Eligibility: Understand DSR, Income and Commitments Before Applying

• Home Loan Application Documents: Checklist for Salaried, Self-Employed and Commission Earners

• Home Loan Approved Below the Purchase Price: How Much Extra Cash Do You Need?

• Stamp Duty Exemption For Property Transaction in Malaysia

• Legal Fees for Buying and Selling a House in Malaysia (2026 Guide)

• Property lawyer services