Frequently Asked Questions

SRP is a home ownership initiative that was first announced in the 2011 Budget by the Government of Malaysia to assist first time house buyers to purchase their first home. The scheme allows first time house buyers to obtain up to 110% financing from the participating banks, enabling home ownership without having the need to pay a down payment.

Cagamas, through its subsidiary Cagamas SRP Berhad (“CSRP”) will guarantee the banks on a ‘first-loss’ basis for financing above the 90% level.

No, the applicants are liable to the bank for the full financing amount (up to 110%). The guarantee only indemnifies the bank for any loss incurred as a result of financing above the 90% level.

Application can be made at any branch of the participating banks.

No, the normal interest/profit rates of the respective banks shall apply and applicants do not have to pay for the CSRP’s guarantee.

This Scheme is open to all Malaysian citizens with gross monthly household income of not more than RM10,000. The applicants’ age limit is subject to the financing tenure.

Yes, the Scheme is applicable for employees in the public and private sectors, including self-employed individuals.

Yes, both are eligible to apply for financing as joint applicants under the Scheme.

Yes, both are eligible to apply for financing as joint applicants under the Scheme.

Yes. Individual/joint applicants with gross monthly household income not exceeding RM5,000 for individual/joint application for the purchase of property priced up to RM300,000 are eligible to obtain 110% financing under this Scheme.

You may apply for 100% financing through individual/joint applications. The individual/joint applicant gross monthly household income must not exceed RM10,000. Assuming both applicants have zero financing obligations at the point of application, financing tenure is 35 years and meet all credit requirements of the bank, the monthly instalment of the financing for the purchase of property priced at RM400,000 should not exceed 60% of the combined monthly net household income of the applicants.

No, joint applicants must be family members, i.e. husband and wife or siblings only, and they must all meet the criteria set.

The objective of the initiative is to assist households to own a first residential property. As such, a person that has inherited a house is deemed to own a residential property and therefore, will not fall under this category. Prospective applicants may be required to sign a self-declaration form stating that they have not inherited or owned a residential property prior to the application.

The joint applicants could be the spouse, parents, children or siblings (living together in the new house), provided that the person meets the other criteria.

There is no maximum number of joint applicant(s), but the joint applicant(s) must be immediate family members and meet all SRP Eligibility Criteria e.g. first time home buyer, monthly gross income not more than RM10,000 and etc

Yes, provided that the Government staff is not eligible for staff housing loan from Lembaga Pembiayaan Perumahan Sektor Awam (“LPPSA”) and subject to fulfilment of the banks’ underwriting standard. 

Yes, the Scheme covers both completed properties and those under development. The guarantee is effective upon full disbursement of the financing.

Valuation of the property is subject to the participating bank’s underwriting policy. Generally, banks will finance based on purchase price or valuation (open market value) from their panel valuer whichever is lower.

No, the Scheme does not cover refinancing of an existing financing.

The type of residential properties and locations are subject to participating banks’ underwriting policies.

No, the Scheme does not cover for home construction under own land.

It must be a residential property for own occupation (either under construction or a completed unit) from the primary and secondary market.

No, the property must be for own occupation purposes.

Yes. The property must be for residential purposes and the title to the property must not be Native Area Land, Native Customary Land, or Interior Area Land in Sarawak.

The maximum financing tenure is 35 years, subject to applicant’s age not exceeding 70 years at the end of financing tenure and to underwriting policies of the participating banks.

For properties under construction, the financing tenure commence from the date the financing amount has been fully disbursed.

Yes, the participating banks will continue processing and approving the financing based on the Scheme’s qualifying criteria and the respective bank’s underwriting and credit standards which should comply with all guidelines issued by Bank Negara Malaysia relating to financing from time to time.

Legal fees may be a part of the financing depending on respective participating bank’s discretion.

Yes, the Scheme covers both conventional and Islamic financing.

The applicant(s) will have to purchase fire insurance/takaful. However, MRTA/MRTT requirements will depend on the requirements of the participating banks.

Depending on respective participating bank’s discretion.

The financial education module is only mandatory for first-time house buyers of property priced up to RM300,000 and with monthly gross household income of not more than RM5,000.

The moratorium period of 5 years is only applicable for first-time house buyers of property priced up to RM300,000 and with monthly gross household income of not more than RM5,000.

No additional agreement is required to be signed by the applicant, unless required by the respective participating banks.