What Is HCGC And How To Apply

Before one applies for a housing loan, one of the compulsory documents needed is your income statement to prove that you are able to repay your loan and as a gauge as to how much the bank is able to offer you in a loan.

However, in a gig economy, many are not working full-time jobs with a variable income due to the flexibility offered. They may find it challenging to obtain housing loan facilities to finance their homes.

Understanding this issue, the government has a Housing Credit Guarantee Scheme (HCGC) to guarantee the financial facilities that will be provided by financial institutions or banks involved in this scheme.

HCGC was incorporated in December 2007 under the Ministry of Finance. During the Budget 2022 announcement, the government allocated a total of RM2 billion for HCGC and this scheme will be expanded to freelancers and gig workers. As of now, the scheme is only open to those with irregular income such as small business owners, farmers and taxi drivers.

If it sounds like you, here are the steps to apply for HCGC to make your home ownership dream come true.

  1. After identifying the house you wish to purchase, prepare the relevant documents such as a Sales and Purchase Agreement (SPA) draft or booking payment receipt.
  2. You will need to get an income confirmation letter from an authorised individual (Category A government officer, chairman of the Village Development and Security Committee (JKKK), penghulu, or selected representative).
  3. If you are applying together with your spouse, get two letters if both of you have separate incomes.
  4. Make sure to provide complete supporting documents for sources of income such as savings account statement, business license, Fishermen’s Registration Card or land title (for agricultural activities), or other supporting documents for sale and purchase activities.
  5. Bring all required documents and apply for a housing loan at any nearest bank branch participating in this scheme.

Not sure if you are qualify for HCGC? Here are the criteria you need to fulfill before submit your application:

  • A Malaysian citizen aged 18 years and above
  • Joint loans are allowed
  • Minimum average gross income of RM1,000 per month
  • Non-fixed income earners such as small business owners, farmers, taxi drivers, fishermen, and others with fixed income (subject to the first RM700 million only)
  • Purchase of a new or under construction or existing residential home or auction property
  • First-time purchase of low to medium or affordable cost housing, as well as plan to live in
  • The applicant must be a resident within 20km of the bank branch where the application is made
  • CCRIS records arrears of less than two months for the last 12 months
  • The monthly repayment of all loans is less than 65% of gross income
  • There are no other negative banking or police records for the last 24 months


[Image source: Photo by Andrea Piacquadio]

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