Getting a home loan in Malaysia without a fixed income has traditionally been an uphill battle. Banks want payslips, EPF statements, or any type of proof that money lands in your account on the same day every month. But what if you’re a Grab driver, a hawker, a freelance photographer, or one of the millions of Malaysians earning an irregular income?

What Is Skim Jaminan Kredit Perumahan (SJKP) And How Does It Work?

SJKP acts as a guarantor for eligible home loans. For borrowers who don’t fit the standard salary mould, that guarantee can remove one of the biggest barriers to approval. When a home loan is backed by an SJKP guarantee, participating banks may be more willing to consider applicants who lack conventional income documents, provided they can still demonstrate the ability to repay.

The scheme was introduced in 2007 to address a long-standing gap in the housing market: hardworking Malaysians with real income, but non-traditional paperwork. Today, SJKP remains one of the main pathways to homeownership for self-employed individuals, small traders, farmers, fishermen, and gig workers.

You apply for SJKP-backed financing through participating banks, just like a regular home loan. If you meet the eligibility criteria, the bank will apply for the SJKP guarantee on your behalf. There are currently two variants available: the standard SJKP scheme and SJKP MADANI, each designed for slightly different buyer needs.

SJKP vs SJKP Madani 

Before choosing between the two, it helps to understand how they differ in terms of financing limits and coverage.

Feature	SJKP	SJKP MADANI
Maximum financing	Up to RM500,000	Up to RM360,000
Coverage	Principal, MRTA/MRTT, legal fees, valuation fees	Principal, MRTA/MRTT, legal fees, valuation fees, plus renovation and furniture costs
Financing percentage	Up to 110% of property value	Up to 120% of property value

The key distinction with SJKP MADANI is its broader coverage. In addition to the property purchase, it may include financing for renovation and furniture, which can reduce the need for upfront cash when moving into a new home.

Why SJKP Is Worth Knowing About If You’re Self-Employed

For Malaysians earning non-fixed income, SJKP makes it possible for self-employed and gig workers to qualify for financing, though it’s important to understand what it does and doesn’t do.

Under the standard SJKP, financing can go up to 110% of the property value, while SJKP MADANI allows up to 120%. In some cases, this additional margin may cover costs such as MRTA or MRTT, legal fees, and valuation charges, potentially reducing the amount of cash needed upfront. Actual financing levels still depend on bank assessment and property valuation.

There’s also something called two-generation financing, which is useful if you’re an older applicant. Normally, banks won’t give a 50-year-old a 30-year loan because you’d be 80 by the time it’s paid off. With two-generation financing, you can add your child to the loan so that repayments continue even after you retire, and this makes banks more comfortable approving longer tenures

SJKP Eligibility: Who Can Apply And What Properties Qualify?

SJKP is open to Malaysian citizens aged 18 and above who are purchasing their first residential property to live in. Both fixed and non-fixed income earners are eligible. That said, if you’re a salaried employee with payslips and EPF statements, you can usually get a conventional home loan without needing SJKP. The scheme is really designed for people who struggle to prove their income through standard documents.

From an affordability standpoint, your total monthly loan commitments, including your new mortgage, must generally stay within 65% of your gross monthly income. Applicants should have:

• No arrears exceeding two months in their CCRIS record over the past 12 months
• No adverse credit records within the past 24 months

The property must be residential and intended for your own stay. Investment properties and commercial units, such as shophouses, are not eligible. New launches, sub-sale homes, properties under construction, and even auctioned properties can qualify, subject to bank approval.

Joint applications between husband and wife are allowed, which can help strengthen affordability if one spouse has a fixed income. Do note that SJKP does not cover refinancing, so existing homeowners looking to refinance will need to explore other options.

How To Apply For An SJKP-Backed Home Loan

Applications are made through participating banks, not directly with SJKP. In practice, this means walking into a bank branch and applying for a home loan as usual.

SJKP applications are made through participating banks, each of which may offer slightly different terms for SJKP-backed financing. Check the full list of partner banks on the official SJKP website and compare options before applying.

For documentation, you’ll typically need:

• MyKad
• Bank statements showing money coming into your account regularly
• Supporting documents such as business licences, permits, or receipts showing sales or trading activity 

Applicants without a fixed income may also be asked for an income confirmation letter from a JKKK chairman, penghulu, Category A government officer, or a bank branch manager. Salaried applicants should prepare payslips and EPF statements instead.

Once you’ve selected a property, submit your documents along with the draft Sale and Purchase Agreement or booking receipt. The bank will assess your application and, if suitable, request the SJKP guarantee. Processing times vary by bank. You can also perform a preliminary eligibility check on SJKP’s official website before visiting a branch.

When SJKP May Not Be The Right Choice

While SJKP can be a powerful enabler, it isn’t automatically the best option for everyone.

If you have a stable, high fixed income and can qualify for a conventional home loan with competitive interest rates, you may not need a government guarantee. Similarly, borrowers already close to the 65% debt service ratio should be cautious about stretching affordability just because higher financing is available.

SJKP is also limited to first-home purchases for one’s own stay. If you’re buying for investment or looking to refinance an existing property, this scheme won’t apply.

How To Improve Your Chances Of Getting Approved Under SJKP

SJKP is not a shortcut around affordability checks. Banks still need to see consistent income and responsible credit behaviour. The guarantee simply makes them more open to alternative income profiles.

If your earnings fluctuate, keep your bank statements organised and ensure they show regular deposits over time. Clearing small debts, reducing credit card utilisation, and avoiding late payments in the months leading up to your application can help keep your debt service ratio within limits.

Joint applications can also improve approval chances, especially when one borrower has a fixed income. Older applicants concerned about loan tenure should remember that two-generation financing may help extend repayment periods.

Planning Your First Home Purchase

Buying your first home involves more than just getting approved. Interest rates, loan structure, and upfront costs all affect what you’ll pay in the long run. Understanding these factors and planning ahead can help you make confident decisions and avoid surprises down the road.

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