Nearly 90% Of SJKP Housing Loans Went To Malaysians Aged 40 & Below. Here’s Why

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Nearly 90% of all housing loans approved under the government's Housing Credit Guarantee Scheme (SJKP) have gone to Malaysians aged 40 and below since it was first introduced in 2008

Deputy Housing and Local Government Minister Datuk Aiman Athirah Sabu told the Dewan Rakyat today, 13 October, that of the 90,779 approved borrowers, more than 80,000 were young Malaysians aged under 40, making up 89.56% of all approvals.

By age group, she said there were over 15,000 borrowers aged 18 to 25, more than 31,000 aged 26 to 30, 22,356 aged 31 to 35, and 12,799 aged 36 to 40.

"Since its launch in 2008, SJKP has approved financing for 90,779 borrowers, totalling RM21.5 billion. Of these, nearly 90% are young Malaysians aged 40 and below," she said in response to Shah Alam member of parliament (MP) Azli Yusof, who asked about initiatives to help gig economy workers and self-employed individuals buy homes.

She added that under Belanjawan 2026, the government has allocated an additional RM20 billion for SJKP — on top of a previous RM20 billion injection — to help more first-time homebuyers who don't have fixed monthly incomes.

"This also includes an additional RM1 billion in guarantees for contract-based civil servants, which is certainly good news," the New Straits Times quoted her as saying.

So, why are young Malaysians the biggest beneficiaries of this government-backed housing loan scheme?

While Aiman Athirah didn't explicitly explain why younger Malaysians dominate the approvals, several factors paint a clear reason: the scheme is designed for first-time homebuyers, and statistically, most first-time buyers are under 40.

It also caters to those without a fixed income — a group that's largely made up of gig workers, freelancers, and small business owners, many of whom are under 40. Traditional banks tend to view these borrowers as "high risk" due to inconsistent earnings, and that's where SJKP steps in to guarantee their loans and make home ownership possible.

At the same time, the scheme aligns with the government's broader focus on youth and housing affordability.

Over the years, especially under the current administration, billions have been channelled into SJKP to make it easier for young people to own homes earlier in life.

The property price limits — up to RM500,000 for standard SJKP and RM300,000 under SJKP Madani — also keep the scheme centred on entry-level homes, which are typically the kind most younger buyers go for.

Here's a quick breakdown of how SJKP works

Applications aren't made directly to SJKP, but through participating banks, which handle the loan process.

Eligibility:

• Must be a Malaysian citizen aged 18 or older
• Buying your first residential property
• Gross monthly income of up to RM11,000
• Open to fixed-income and non-fixed-income earners (like gig workers or self-employed individuals)
• Can apply individually or jointly with immediate family members (spouse, parents, children, or siblings)

Property requirements:

• Must be a residential property (new, under construction, sub-sale, or auctioned)
• Must be owner-occupied
• Property value up to RM500,000 under SJKP, or RM300,000 under SJKP Madani
• Offers up to 110%–120% financing, which can cover legal fees, MRTA, and even renovation costs

Financial requirements:

• Debt Service Ratio (DSR) capped at 65% of gross monthly income
• Clean credit history — no major arrears or negative credit record in the past two years