Budget 2027 sets aside up to RM20 billion in housing loan guarantees through Syarikat Jaminan Kredit Perumahan (SJKP), aimed at about 80,000 first-time buyers, with self-employed people who have no fixed monthly income named as the main target. The guarantee does not give anyone free money. It lets a participating bank approve a borrower it would normally reject for lack of payslips, because SJKP covers the bank if the loan goes bad. Under the terms SJKP publishes today, the standard scheme finances up to RM500,000 and the MADANI variant finances up to 120% of a home priced up to RM300,000.
The allocation appears in paragraph 55 of the Finance Ministry’s Budget 2027 speech, tabled on 9 October 2026. This guide explains how the two SJKP routes work, which checks banks still apply, and how a self-employed buyer can use the scheme for a new launch.
What Budget 2027 announced for buyers without a fixed income
The Budget 2027 speech groups the SJKP guarantee with several other housing items under one heading on housing for the rakyat. The figures relevant to first-time buyers are:
- SJKP guarantees of up to RM20 billion, intended to help around 80,000 first-time buyers, particularly the self-employed without a fixed income.
- A first-home stamp duty exemption that stays at 100% for homes up to RM500,000 and gives partial relief up to RM750,000, for agreements signed from 2027 to 2030. Our Budget 2027 stamp duty breakdown works through the numbers at each price point.
- Close to RM1 billion for Rumah Mesra Rakyat and Program Residensi Rakyat, with four new projects in Kulai, Nilai, Paya Rumput and Lembah Pertang.
Dividing the headline figures gives an average of about RM250,000 of guaranteed financing per targeted buyer. That average sits well inside SJKP’s own limits, which suggests the allocation is sized for homes in the RM200,000 to RM400,000 range rather than city-centre condominiums.
The two SJKP routes compared
SJKP runs its Housing Credit Guarantee Scheme (HCGS) in two main forms. Participating banks market them under their own product names, but the underlying limits come from SJKP.
| Feature | Standard HCGS | HCGS MADANI |
|---|---|---|
| Maximum financing | RM500,000, including the loan, mortgage insurance or takaful, legal fees and valuation fees | RM360,000 |
| Home price covered | Up to RM500,000 (as listed by participating banks) | Up to RM300,000 (as listed by participating banks) |
| What the financing can include | Purchase price plus insurance or takaful, legal fees and valuation fees | Up to 100% of the price plus up to 20% more for insurance or takaful, legal fees, valuation fees, renovation and home furnishing |
| Guarantee coverage | More than 100% of the financing amount | Up to 120% of the purchase price |
| Tenure | Up to 35 years, two-generation loans allowed | Up to 35 years, two-generation loans allowed |
| Guarantee fee | 0.25% a year up to RM300,000 and 0.5% a year on the portion above, paid by the bank | Not published separately |
| Interest or profit rate | Set by each bank | Set by each bank |
SJKP’s scheme page also lists an older variant capped at RM400,000 of financing, which covers 100% of the loan and requires a deposit equal to three months of instalments. Ask the bank which variant your application falls under before you sign anything.
The practical difference between the two main routes is the upfront cash. On a RM300,000 home under HCGS MADANI, financing of up to RM360,000 can absorb the purchase price and most of the transaction costs. Under the standard scheme, the financing covers the price and fees but not renovation or furnishing.
Who qualifies: the checks banks still apply
The guarantee removes the payslip barrier. It does not remove credit underwriting. SJKP lists these conditions on its eligibility page:
- Malaysian citizens aged 18 and above. Joint applications are allowed, including a husband with irregular income and a wife on a fixed salary.
- First home, owner-occupied. It covers new, under-construction, completed, sub-sale and auctioned residential property. Shophouses, self-build houses on your own land and refinancing are excluded.
- Total loan repayments within 65% of gross monthly income. All existing loans count, including car loans and personal financing.
- CCRIS arrears of no more than two months within the last 12 months.
- No other adverse credit records within the last 24 months.
Participating banks add their own conditions. One major Islamic bank lists a maximum monthly income of RM11,000 per applicant for both of its SJKP products, and the Finance Ministry’s public information on the scheme gives the same ceiling. Banks also set their own profit rates, so the cost of the same guaranteed loan can differ between lenders.
The 65% repayment ceiling is where most self-employed applicants should start their own maths. As an illustration, at an assumed rate of 4.5% over 35 years, the monthly instalment and the minimum gross income needed with no other debts work out as follows:
| Financing amount | Monthly instalment (4.5%, 35 years) | Minimum gross monthly income at 65% |
|---|---|---|
| RM300,000 | About RM1,420 | About RM2,180 |
| RM360,000 | About RM1,700 | About RM2,620 |
| RM500,000 | About RM2,370 | About RM3,640 |
These figures are worked examples, not bank quotes. A car loan of RM800 a month would raise the income needed for a RM300,000 loan to roughly RM3,420. Our article on Malaysia’s home loan approval rate covers the other reasons applications fail.
Documents a self-employed applicant should prepare
Because the scheme is designed for people without payslips, the paperwork focuses on proof that income is real and recurring. SJKP and participating banks ask for some combination of the following:
- A booking form, deposit receipt or sale and purchase agreement for the property
- The latest six months of bank or deposit account statements
- The latest income tax return (Form B with payment receipt) or an EPF statement, where available
- Six months of payment vouchers, receipts or platform statements for gig workers
- A business registration, business licence, fisherman’s registration card or taxi permit, where applicable
- A declaration confirming self-employment or income, endorsed by a village development committee (JKKK), a penghulu or ketua kampung, a Category A government officer or a bank branch manager
- A copy of the identity card for each applicant
The six-month bank statement carries the most weight. Income that passes through a personal account consistently is far easier to accept than cash that never touches a bank.
What the guarantee does not change
An SJKP guarantee protects the lender, not the borrower. Three points are easy to miss:
- You repay the full loan. The guarantee is not a subsidy and does not reduce the instalment.
- Interest rates still move. Banks price these loans off their base rate, which follows the overnight policy rate. Our note on Bank Negara’s OPR decision explains the current setting.
- A 35-year commitment with little or no down payment has no buffer. If your income dips for a few months, the instalment does not.
SJKP also places no resale restrictions of its own on a home bought under the scheme, although the bank’s loan terms still apply. That differs from many state affordable housing schemes, which impose moratorium periods.
The RM20 billion figure is a budget allocation, not a list of approved loans. How quickly banks process applications under the new allocation will only become clear in 2027. The September roundup of KPKT housing measures separates which measures were already running from those that were still proposals.
How SJKP fits a new launch purchase
SJKP covers homes under construction, so it can fund a new launch as well as a sub-sale unit. The order of steps matters more than usual for a self-employed buyer:
- Check eligibility before booking. Ask two or three participating banks whether they will process your file under SJKP, and get an indicative loan amount.
- Match the price to the scheme. HCGS MADANI only fits homes up to about RM300,000, and the standard scheme up to RM500,000. A RM520,000 unit falls outside both.
- Keep the SPA timeline in view. Developers usually expect a loan offer within a few weeks of booking. A slower guarantee approval should be raised before you pay the booking fee.
- Stack the stamp duty relief. A first home at or below RM500,000 also qualifies for the full first-home stamp duty exemption. See our guide to stamp duty and legal fees in Malaysia for the remaining costs.
Within the scheme’s price limits, the realistic options are mostly outside the Klang Valley core. Areas such as Ipoh, Bukit Mertajam, Kuantan and parts of Johor Bahru have new projects in that range. Our step-by-step guide on how to buy a new launch property in Malaysia covers the booking-to-keys process, and the comparison of new launch versus sub-sale helps when the scheme could fund either. Government servants should compare the separate LPPSA financing route, which has a much higher ceiling.
Frequently asked questions
Can I get a home loan in Malaysia if I am self-employed with no payslip?
Yes. The SJKP Housing Credit Guarantee Scheme is built for non-fixed income earners, including business owners, gig workers and freelancers. Banks accept bank statements, tax returns, business registration and an endorsed income declaration in place of payslips, and SJKP guarantees the loan to the bank.
How much can I borrow under the SJKP scheme?
The standard scheme finances up to RM500,000, including insurance or takaful, legal fees and valuation fees. The HCGS MADANI variant finances up to RM360,000, which covers up to 100% of a home priced up to RM300,000 plus up to 20% more for fees, renovation and furnishing.
What did Budget 2027 change for SJKP?
Budget 2027 allocates up to RM20 billion in SJKP housing financing guarantees, with a target of around 80,000 first-time buyers, mainly self-employed people without a fixed income. The speech did not announce changes to SJKP’s financing limits or eligibility rules.
Can I use SJKP to buy an under-construction new launch?
Yes. SJKP covers new homes that are under construction or completed, as well as sub-sale and auctioned homes. The home must be your first residential property and owner-occupied, and the price must fall within the scheme’s financing limits.
What is the debt service ratio limit for SJKP?
SJKP requires total loan repayments, including the new home loan, to stay within 65% of gross monthly income. A RM300,000 loan at an assumed 4.5% over 35 years costs about RM1,420 a month, which needs a gross income of about RM2,180 if you have no other debts.
Is there an income limit for the SJKP home loan?
SJKP’s own eligibility page does not state an income ceiling, but participating banks apply one. At least one major bank and the Finance Ministry’s public information on the scheme list a maximum monthly income of RM11,000 per applicant, so confirm the current limit with your bank.