Housing Credit Guarantee Scheme (SJKP) Malaysia: 2026 Guide

Housing Credit Guarantee Scheme (SJKP) Malaysia: What It Is & How It Helps Home Buyers in 2026

For many Malaysians, particularly those without a fixed monthly salary, the dream of owning a home often hits a wall during the loan application process. Traditional banks typically require standard documentation—such as three months of payslips and EPF statements—to assess creditworthiness. This leaves a significant portion of the workforce, including gig economy workers, freelancers, and small business owners, underserved.

To address this gap, the government established Syarikat Jaminan Kredit Perumahan Berhad (SJKP). With the tabling of Malaysia Budget 2026, the government has significantly expanded this initiative to ensure housing accessibility for the rakyat.

This article provides a comprehensive breakdown of SJKP Malaysia explained for 2026, detailing eligibility criteria, application processes, and how the scheme affects home loan approvals.

What Is the Housing Credit Guarantee Scheme (SJKP)?

The Housing Credit Guarantee Scheme Malaysia (or Skim Jaminan Kredit Perumahan) is a government initiative established to assist individuals with irregular or non-fixed incomes in securing housing financing from financial institutions.

It is not a direct loan provider. Instead, SJKP acts as a guarantor for eligible borrowers. If a borrower defaults, SJKP guarantees the payment to the bank. This reduces the risk for financial institutions, encouraging them to approve loans for applicants who might otherwise be rejected due to a lack of formal income documentation.

The Evolution of SJKP in Budget 2026

Under the Malaysia Budget 2026, the government has reinforced its commitment to affordable homeownership. Key updates include:

• Increased Allocation: The government has doubled the guarantee capacity, increasing the ceiling by RM10 billion to a total of RM20 billion.
• Target Reach: This expansion aims to assist approximately 80,000 to 100,000 potential buyers, specifically targeting the B40 and M40 groups.
• Contract Staff Support: The scheme now explicitly extends protection to contract civil servants, including teachers from Tabika and Taska KEMAS, ensuring they can access financing despite their employment status.

Who Is Eligible for SJKP in 2026?

Understanding SJKP eligibility 2026 is crucial for potential applicants. The scheme is designed to be inclusive but maintains specific criteria to ensure it aids those who truly need it.

General Eligibility Criteria

• Citizenship: Applicants must be Malaysian citizens aged 18 years and above.
• Home Ownership Status: The scheme is strictly for the purchase of a first residential home. It must be for own occupation, not for investment or rental purposes.
• Income Status: The scheme targets individuals with non-fixed income (e.g., gig workers, fishermen, small traders, taxi drivers). However, fixed-income earners are also eligible under certain conditions.
• Income Threshold: The average gross monthly income of the applicant must be at least RM1,000. The maximum monthly income for the main applicant must not exceed RM11,000.
• Credit History: Applicants must not have any record of bankruptcy. CCRIS records must show arrears of less than two months over the last 12 months.

Joint Applications and Two-Generation Financing

To boost affordability, joint loan applications are allowed. Spouses can apply together, even if one partner has a fixed income. Furthermore, two-generation financing is permitted, allowing parents and children to share the repayment burden, which can help extend the loan tenure up to 35 years or until the applicant reaches 65 years of age.

How SJKP Works: Financing and Guarantees

The core function of the SJKP is to bridge the gap between the borrower's capability to pay and the bank's risk appetite. Here is how the mechanics of the scheme work in practice.

1. Guarantee Coverage: Up to 120%

One of the most significant benefits of SJKP is the extent of the financing guarantee. The government provides a guarantee of up to 120% of the house price.

• Principal Amount: Covers 100% of the property purchase price.
• Ancillary Costs: The additional 20% margin is designed to cover related acquisition costs, including:
  • Mortgage Reducing Term Assurance (MRTA) or Takaful (MRTT).
  • Legal fees and valuation fees.
  • Renovation and furniture costs (specifically under the SJKP MADANI variant). This feature effectively allows for a zero-deposit entry into homeownership, removing the barrier of saving for a hefty down payment.

2. Financing Limit and Tenure

• Maximum Financing: The scheme generally covers properties valued up to RM500,000.
• Loan Tenure: Up to 35 years or until the borrower is 65 years old.
• Debt Service Ratio (DSR): The total monthly repayment of all loans (including the new housing loan) must not exceed 65% of the applicant's gross monthly income.

3. Step-Up Financing Mechanism

To further ease the burden on first-time buyers, Budget 2026 highlights a Step-Up Financing mechanism. This structure allows for lower monthly installments during the first five years of the loan tenure. The payments gradually increase as the borrower’s career progresses and income potentially rises, improving cash flow for young buyers in the early years of homeownership.

Step-by-Step Guide: How to Apply for SJKP

Unlike applying for a government grant, you do not apply to SJKP directly. The application is processed through participating financial institutions (banks).

Step 1: Prepare Necessary Documents

Since applicants often lack standard payslips, alternative proof of income is required.

• Identification: Photocopy of NRIC.
• Income Proof: Latest 6 months' bank statements or deposit account statements.
• Business Documents: Business license, Fisherman’s Registration Card, Taxi Permit, or other relevant documents proving self-employment.
• Income Confirmation: If bank statements are insufficient, an income confirmation letter is required. This can be verified by a Category A Government Officer, JKKK Chairman, Penghulu, or a Bank Branch Manager.
• Tax Documents: Latest income tax return (Form B/BE) or EPF statement (if available).
• Property Documents: Draft Sale and Purchase Agreement (SPA) and booking receipt.

Step 2: Visit a Participating Bank

Applicants must submit their documents to any participating financial institution. Major banks involved in the scheme include:

• Maybank
• BSN (Bank Simpanan Nasional)
• Bank Islam
• RHB Bank
• AmBank
• Alliance Bank
• Agro Bank
• Bank Muamalat
• Hong Leong Bank

Step 3: Bank Evaluation and SJKP Submission

The bank evaluates the applicant's creditworthiness (CCRIS/CTOS) and ability to repay based on the submitted documents. If the applicant meets the bank's internal criteria but lacks standard income proof, the bank submits the application to SJKP for the guarantee cover.

Step 4: Approval and Offer Letter

Once SJKP approves the guarantee, the bank issues a Letter of Offer to the borrower. The financing rate (interest rate) is determined by the bank, usually based on the Standardised Base Rate (SBR) plus a spread.

How SJKP Affects Home Loan Approval

For gig workers and self-employed individuals, how SJKP affects home loan approval is the most critical aspect of the scheme.

1. Mitigates Risk for Banks: Banks are generally risk-averse. Without a fixed salary, a borrower is seen as high-risk. SJKP removes this barrier by guaranteeing the loan. If the borrower defaults, the government (through SJKP) steps in to cover the loss. This makes banks significantly more willing to lend to non-standard income profiles.
2. Reduces Upfront Cash Requirements: By covering up to 120% of the value, borrowers do not need to produce a 10% down payment. For a RM300,000 home, this saves the buyer RM30,000 upfront, drastically improving their approval chances by removing the "insufficient capital" rejection reason.
3. Does Not Replace Credit Discipline: It is vital to note that SJKP is a guarantor, not a charity. Banks still conduct CCRIS checks. If an applicant has high existing debt (DSR > 65%) or active arrears (more than 2 months), the loan will likely be rejected regardless of the SJKP guarantee.

SJKP vs. SJKP MADANI: Understanding the Difference

Recent updates have introduced a sub-category known as SJKP MADANI. While both operate under the same umbrella, there are nuances in their coverage limits:

Note: Some sources indicate the general SJKP can also reach 120% depending on the specific bank package and latest Budget 2026 adjustments.

Benefits and Limitations of SJKP

Benefits

• Accessibility: Opens the property market to gig workers, fishermen, and freelancers who are usually rejected by banks.
• Zero Deposit: The 120% guarantee allows for full financing plus costs, removing the need for a 10% down payment.
• Wide Property Choice: Applicable to new launches, subsale properties, and even auctioned homes.
• Interest Relief: Budget 2026 offers tax relief on housing loan interest: up to RM7,000 for homes priced up to RM500,000.

Limitations

• Interest Rates: The interest rate is determined by the financial institution, not SJKP. Borrowers are subject to market rates (e.g., SBR + Spread), which can fluctuate.
• Cap on Value: Strictly for homes valued at RM500,000 or below. This limits options in high-cost areas like Kuala Lumpur or Penang Island.
• First Home Only: Existing homeowners cannot use this scheme to buy investment properties.
• No Refinancing: The scheme is for purchase only; it cannot be used to refinance existing debts or properties.

Conclusion

The Housing Credit Guarantee Scheme (SJKP) remains a vital pillar of Malaysia's housing strategy in 2026. By increasing the guarantee ceiling to RM20 billion and introducing step-up financing, the government is actively dismantling the financial barriers faced by the gig economy workforce. For first-time buyers without a payslip, SJKP is not just a policy—it is a tangible pathway to homeownership. However, prospective buyers must maintain good credit discipline and ensure their debt obligations remain within manageable limits to secure approval.