What is the HLB Housing Guarantee Scheme?
The HLB Housing Guarantee Scheme is a home loan offered by Hong Leong Bank under the government's Housing Credit Guarantee Scheme (HCGS), administered by Syarikat Jaminan Kredit Perumahan Berhad (SJKP) — an agency under the Ministry of Finance.
Getting a home loan without a fixed salary or formal payslips can be difficult. This scheme was designed specifically for that situation. SJKP acts as guarantor to the bank, providing more than 100% coverage on the financing amount, which makes it possible for HLB to extend financing to applicants who may not qualify through conventional channels including self-employed individuals, gig economy workers, traders, farmers, and fishermen.
This is a term loan product, meaning repayments are structured as fixed monthly instalments over the agreed tenure. It cannot be combined with HLB's Mortgage Overdraft facility.
What are the key features?
- Total financing of up to RM500,000, inclusive of MRTA/MRTT, Long Term Houseowner's Takaful (LTHO), solicitor's fees, and valuation fees
- Open to both salaried employees and non-fixed income earners
- Loan tenure of up to 35 years, with two-generation financing available
- No lock-in period — no early redemption or settlement fee if the loan is paid off ahead of schedule
Do note that the RM500,000 ceiling covers all costs bundled into the loan, not just the property purchase price. The actual amount available for the property itself depends on what portion of that cap goes toward ancillary costs. Always review the Letter of Offer carefully to understand how the financing is structured.
What is the interest rate?
This is a variable rate loan based on the Standardised Base Rate (SBR), which is benchmarked to Bank Negara Malaysia's Overnight Policy Rate (OPR). The SBR currently sits at 2.75% p.a. The actual rate is determined by HLB based on the borrower's profile and stated in the Letter of Offer.
Monthly instalments will change whenever the SBR changes. If a standing instruction is in place for repayment, it will need to be updated accordingly.
How does two-generation financing work?
If a primary applicant is older and the remaining repayment period is limited by age, a child can be included as a joint borrower to extend the tenure. The child must be at least 18 years old at the point of application. The maximum tenure under HCGS is 35 years in total, and the specific approved tenure will depend on the younger applicant's age and HLB's assessment.
Am I eligible?
Malaysian citizens aged 18 and above may apply. The scheme covers both salaried employees and non-fixed income earners. The property must be the applicant's first home, purchased for owner-occupation. Eligible property types include new, sub-sale, and auctioned residential properties — whether newly completed or under construction. The scheme does not cover land purchase or construction financing.
On the income documentation side, non-fixed income earners can substantiate their income through:
- Bank account statements
- Business licence
- Fisherman's registration card
- Confirmation letter from Jawatankuasa Kemajuan dan Keselamatan Kampung (JKKK) or a similar body
- Confirmation letter from Category A government servants, a Penghulu, or elected representatives
All documentation must be independently verifiable.
Applicants must also meet SJKP's credit conditions: total monthly loan repayments cannot exceed 65% of gross monthly income, CCRIS records should not show arrears of more than 2 months within any 12-month period, and there must be no adverse credit records within the last 24 months.
Fees and charges
| Fee | Amount |
|---|---|
| Processing fee | Waived (subject to change) |
| Early settlement fee | Not applicable — no lock-in period |
| Late payment fee | 1% p.a. on the outstanding amount in arrears |
| Withdrawal fee | Not applicable (term loan) |
| Redemption letter fee | RM50 per request |
| Letter for EPF withdrawal fee | RM20 per request |
All fees are subject to prevailing government taxes where applicable. For the full and current schedule, visit HLB's Fees and Charges — Retail Loans page.
It is worth noting that late payment charges can escalate. If repayments default for 31 days on at least 3 occasions within 12 months, HLB may impose an additional 1.5% p.a. above the prescribed rate. If the account remains overdue beyond 100 days, a further 1.00% p.a. may be added. Borrowers facing repayment difficulties should contact HLB's Consumer Collection Centre early. Free credit counselling is also available through AKPK at akpk.org.my.
How to apply
Applications are submitted at any HLB branch, there is no need to visit SJKP's office. HLB will assess the application against its own credit criteria and, if satisfactory, submit it to SJKP for guarantee approval before issuing the Letter of Offer.
Monthly repayments can be made via standing instruction from a HLB or HLISB account, HLB Connect Online or the mobile app, IBG transfer, ATM transfer, Cash or Cheque Deposit Machine, or over the counter at any branch.
Frequently Asked Questions
What is SJKP and what does it do?
SJKP (Syarikat Jaminan Kredit Perumahan Berhad) is a government-owned company under the Ministry of Finance. It acts as a guarantor on housing loans for eligible Malaysians, covering more than 100% of the financing amount — including associated costs like MRTA/MRTT, legal fees, and valuation fees. This guarantee is what allows HLB to lend to applicants who do not have formal payslips or fixed income documentation.
Can I apply without a payslip?
Yes. Non-fixed income earners can submit bank statements, a business licence, a fisherman's registration card, or a confirmation letter from an authorised body such as a JKKK chairman, Penghulu, or Category A government servant. All income documentation must be independently verifiable.
Can I combine this loan with an HLB Mortgage Overdraft?
No. Government-initiated schemes under SJKP are only available as term loan facilities. The Mortgage Overdraft cannot be combined with this product.
Is there a penalty for paying off the loan early?
No. The HLB Housing Guarantee Scheme has no lock-in period, so there is no early redemption or settlement fee.
Can MRTA or MRTT be included in the loan amount?
Yes. MRTA or MRTT premiums can be financed into the loan. The total financing — including the property purchase price, MRTA/MRTT, LTHO, solicitor's fees, and valuation fees — must remain within the RM500,000 scheme ceiling.
Does the interest rate change?
Yes. This is a variable rate product tied to the SBR, which moves in line with BNM's OPR decisions. Monthly instalments will adjust whenever the SBR changes. If a standing instruction is used, the repayment amount should be updated accordingly after each rate change.
What happens if I miss a payment?
A late payment charge of 1% p.a. applies on the outstanding instalment in arrears. Persistent defaults can trigger escalating charges — up to an additional 1.5% p.a. above the prescribed rate after three defaults within 12 months, and a further 1.00% p.a. beyond 100 days of arrears. Contact HLB's Consumer Collection Centre at 03-7959 1888 as early as possible if repayment becomes a problem.
