Flexible home financing for those without fixed income


Owning a home is a dream come true for many.

However, it is not easy for those with no fixed income or low wages to secure a housing loan for themselves.

Other reasons why housing loans are rejected include failure to meet the stipulated criteria, incomplete documents and a bad credit history.

Understanding these issues, the government set up Syarikat Jaminan Kredit Perumahan Berhad (SJKP) in 2007 for homebuyers to guarantee the financing facilities provided by participating financial institutions.

The scheme aims to assist first-time homebuyers, especially those without a fixed income such as gig and freelance workers, independent business owners, small traders and entrepreneurs.

Home financing up to RM400,000

On October 29, 2021, the government announced an additional RM2 billion guarantee for SJKP in Budget 2022 for first-time homebuyers. 

Those who are eligible for this programme can obtain financing of up to RM400,000 from participating banks, including principal financing amount, Mortgage Reducing Term Takaful (MRTT)/ Mortgage Reducing Term Assurance (MRTA), Long Term House owner’s Takaful (LTHO), solicitor’s fee and valuation fee.

The main six participating banks involved are Agrobank, Bank Islam, Bank Muamalat, Bank Rakyat, Bank Simpanan Nasional and RHB Bank. Other participating financial institutions can be found here.

Aside from the high financing amount, applicants will find that the eligibility criteria is much more flexible. 

Here are the requirements for this scheme: 

  1. Malaysian citizens aged 18 years and above.
  2. Purchase of first new residential house or existing house (sub-sale) or auctioned house which are under low or medium or affordable category and to be owner occupied.
  3. The total repayment of all applicant’s loans does not exceed 65% of gross monthly income.
  4. Central Credit Reference Information System (CCRIS) record of arrears not more than two months within a period of 12 months.
  5. No other adverse credit records within the last 24 months. 

Regarding the interest rate, it is charged according to the base rate of the financing/loan by the financial institution.

It is also mandatory for applicants to have a deposit equivalent to three months monthly instalment that their chosen financial institution has set.

Overall, those with stagnant wages, without payslips, are self-employed and have no fixed income stand to benefit from SJKP.

Additionally, Malaysians working in the gig economy sector, small businesses, online businesses, e-hailing and more can now purchase their first home with a financing tenure for up to 35 years.

Interestingly enough, the scheme allows two-generation financing, whereby they can apply for an extension for the repayment period.

For more information about SJKP, visit their website here.

*Terms and conditions apply. 

This article originally appeared on Harian Metro, with rights to be republished on The Malaysian Reserve.