22nd January 2026 - 2 min read
The Housing Credit Guarantee Scheme (SJKP) is expected to support more than 100,000 Malaysians buying their first homes this year, as the government continues to expand financing access for buyers who may not meet standard lending requirements.
The scheme’s total guarantee ceiling was increased by RM10 billion in 2025, lifting the cumulative value of guarantees issued since 2008 to RM40 billion. The higher ceiling is intended to accommodate growing demand from first-time buyers.
As at Sept 30, 2025, housing loan guarantees approved under SJKP amounted to RM23.17 billion. These guarantees have helped 97,180 individuals secure home financing so far.
With about RM16 billion in guarantee value yet to be utilised, eligible applicants still have access to the scheme, particularly those planning to enter the market for the first time.
SJKP focuses on households in the B40 and M40 income groups, including individuals who do not earn a fixed monthly salary. This includes gig workers and self-employed Malaysians who often face difficulty providing conventional income documentation.
For these buyers, the government-backed guarantee reduces lender risk and improves the likelihood of loan approval.
First-time buyers using SJKP can obtain guarantees for home purchases of up to RM500,000. The scheme applies across new developments, subsale homes, and auction properties, giving buyers flexibility when choosing a property.
Under the SJKP MADANI initiative, financing support can extend up to 120% of the property value. This allows buyers to better manage upfront costs that go beyond the purchase price.
A step-up financing structure introduced in 2025 offers lower monthly instalments during the initial ownership period. The reduced instalments apply for the first three to five years, depending on the agreed terms.
Monthly payments increase gradually thereafter, giving buyers time to strengthen their income position before higher repayments begin.
Local Government Development Minister Nga Kor Ming said the ministry will work with Bank Negara Malaysia to encourage more financial institutions to participate in the scheme.
He added that the ministry will continue monitoring the rollout and performance of SJKP to ensure it delivers practical benefits for first-time homebuyers.
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Samuel writes about personal finance and financial news, focusing on how banking updates, policies, and promotions affect everyday money decisions. He enjoys making complicated financial topics easier to follow. Outside of writing, he spends his time watching TV shows and occasionally convincing himself he will only watch one episode.
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