Earn Your First Home? How To Obtain It With Small Wages?

Most young people aspire to own their first home at a young age. They are worried about the low average monthly salary. Some are working but do not have a pay slip. It makes them feel the need to save for an extended period to own a house.

However, nothing is impossible. Here, we will explain the ways and steps you need to take to own your first home.

What is Housing Credit Guarantee Scheme (SJKP)

The Housing Credit Guarantee Scheme (SJKP) is specifically for those with a minimum gross average income of RM1000 per month without a pay slip, private sector employees, and individuals who do not have a permanent job. This initiative created by the Ministry of Finance indirectly gives hope to low-income groups, especially B40 and M40. Breadwinners and individuals with no fixed monthly income, such as farmers, fishermen, and small businesses, will finally obtain financial loans to acquire their first homes.

Picture: SJKP

Summary of this scheme for first home

This scheme is a 100% guarantee of housing financing loans that can reach up to RM400,000. It includes the principal financing amount, Mortgage Reducing Term Assurance (MRTA)/Mortgage Reducing Term Takaful (MRTT), Long Term House Owner’s Takaful (LTHO), solicitor’s fee, and valuation fee. In addition, the interest rate is also subject to the financial institution involved and a payment deposit for three months of monthly payments is mandatory. The term set for a loan is for 35 years or until the end of the financing period, whichever is earlier. Two-generation loans are also allowed.

Picture: Google

Eligibility

1) Malaysians aged 18 and above (joint financing allowed).

2) First home purchase. It doesn’t matter if it’s in a new housing or an existing house (a house sold by the original owner), or an auction house.

3) The applicant’s loan payment amount does not exceed 65% of the monthly gross income.

4) There is no record of CCRIS arrears exceeding two months in the most recent 12 months.

5) You have no other negative credit record in 24 months.

Application process

Potential borrowers identify the properties they want. After that, they will prepare the necessary documents and send them to the relevant Financial Institution.

The bank will evaluate and review the application sent by the borrower. After that, the bank will send the application to SJKP for the guarantee of financing.

If the application sent by the applicant meets the criteria set by SJKP, SJKP will review and provide a funding guarantee.

The financial institutions will provide an offer letter to the customer after the customer’s application successfully obtains a financing guarantee from SJKP.

The applicant received an offer letter from the Financial Institution and successfully purchased their first dream home with financing issued by the Financial Institution involved.

Required Documents for first home

1) Sale and purchase agreement/booking sheet/house advance payment receipt

2) Latest six months’ bank account statement or EPF statement (if available)

3) Employment confirmation letter

4) Copy of the applicant’s Identity Card

5) Employer confirmation letter (if any)

6) Business license, Fisherman registration card, or taxi permit (Any applicable)

7) Self-employment declaration license or income statement certified by JKKK or civil servant category A, Penghulu/Ketua Village or Bank Manager nearby branch

Sources: SJKP

Adib Mohd

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