SJKP guarantees over 100% home financing for first-time buyers


KUALA LUMPUR: Syarikat Jaminan Kredit Perumahan Bhd (SJKP) guarantees home loans covering more than 100 per cent of the house purchase price for qualified first-time buyers, giving banks greater confidence to approve applications that might otherwise be declined.

In a statement today, the company said that despite having stable incomes and good credit records, many workers still face difficulties in securing home loans because banks cannot verify their earnings through formal payslips.

"This has left communities such as ride-hailing drivers, online sellers, hawkers and small entrepreneurs struggling to own their first home.

"The maximum guaranteed financing coverage is up to RM500,000 and may cover more than 100 per cent of the house purchase price, including Mortgage Reducing Term Assurance (MRTA) or Mortgage Reducing Term Takaful (MRTT), fire insurance, as well as legal and valuation fees," it said.

SJKP said the entire process is handled through various participating banks.

In a landscape where the bottom 40 per cent (B40) and middle 40 per cent (M40) income groups increasingly rely on informal income sources, the scheme provides a vital lifeline to those who earn steadily but lack official proof of income.

While no payslip is required, borrowers can still demonstrate their repayment capacity through bank statements, tax filings, Employees Provident Fund (EPF) statements, or e-wallet transaction histories.

"The government has set a goal of increasing home ownership to 70 per cent by 2030, and initiatives like SJKP play a crucial role in achieving this target, particularly among underserved segments.

"Since the programme's inception, billions of ringgit have been allocated annually by the government to sustain this beneficial scheme. As housing demand rises and the gig economy becomes a permanent feature of Malaysia's workforce, SJKP's role continues to grow," it added. - Bernama

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