Understanding the Housing Credit Guarantee Scheme (SJKP) in Malaysia
For many Malaysians, especially those with irregular incomes, securing a home loan can be a daunting task. This challenge is even more pronounced for individuals who do not have a fixed income, such as gig workers, small traders, fishermen, and farmers. However, there is a government initiative designed to help these individuals achieve their dream of homeownership. This initiative is known as the Housing Credit Guarantee Scheme (SJKP).
What is SJKP?
The SJKP is a government program aimed at assisting non-fixed-income earners in obtaining housing loans. By acting as a guarantor, the scheme provides assurance to financial institutions, making it easier for individuals to secure financing through conventional channels.
One of the key features of the SJKP is that it guarantees 100% of the loan or more, which significantly reduces the risk for lenders. This makes it possible for people with unstable incomes to access housing finance.
Key Features of the SJKP
- Financing Limit: Up to RM500,000, which includes the principal amount, mortgage insurance, lawyer’s fee, and valuation fee.
- Financing Tenure: A maximum of 35 years, with the option for two-generation financing. This means that parents or children can also qualify under the same loan.
- Interest Rate: Determined by the financial institution based on current market rates.
Who Can Qualify?
The SJKP is open to Malaysian citizens aged 18 and above. For two-generation financing, children must also be 18 years old or older to qualify. Applicants must be non-fixed-income earners and must be purchasing their first home. The property must be newly completed, under construction, subsale, or auctioned.
Additionally, the monthly repayment for the loan should not exceed 65% of the applicant’s income. They must also maintain a good credit record, and the main applicant’s monthly income must not exceed RM11,000.
Required Documents
Before applying for the SJKP, applicants need to prepare the following documents:
- Sale and purchase (S&P) agreement and booking sheet
- Down-payment receipt
- Latest bank or deposit account statement (for six months)
- Latest income tax return or EPF statement (if applicable)
- Employment confirmation letter (if relevant)
- NRIC copy
- Business licence, fisherman’s registration card, taxi permit, or other relevant documents
- Declaration of self-employment
The declaration of self-employment must include the applicant’s name, IC number, source of income, average monthly income, business address, and years of business.
Financial Institutions Involved
Several financial institutions in Malaysia participate in the SJKP. These include:
- Maybank (conventional and Islamic)
- Hong Leong (conventional and Islamic)
- Alliance (conventional and Islamic)
- MBSB Bank
- Bank Islam
- Agro Bank
- Affin Bank
- Ambank Islamic
- Bank Muamalat
- BSN
How to Apply
To apply for the SJKP, follow these steps:
- Identify the property you wish to purchase. Ensure that it meets the eligibility criteria outlined above.
- Prepare the sale and purchase (S&P) agreement and down-payment receipt.
- Include all the required documents with your application to the chosen financial institution.
- Submit a valid declaration of self-employment containing the necessary details.
- The financial institution will evaluate your application based on the criteria set by the SJKP.
- If your application is satisfactory, it will be submitted to SJKP for further review.
- Upon approval, the financial institution will issue a letter offer for the loan with an SJKP guarantee.
This initiative is a significant step towards making homeownership accessible for all Malaysians, regardless of their income stability. It empowers individuals to take control of their financial future and build a better life for themselves and their families.
