MyDeposit vs HCGS: Two Ways the Government Helps With Your Down Payment

The two biggest government programmes that help Malaysians with a home purchase work in completely different ways. MyDeposit hands you cash of up to RM30,000 to cover the down payment; HCGS (the Housing Credit Guarantee Scheme, administered by SJKP) guarantees your home loan so that a bank will approve financing even without a formal payslip. Understanding which one applies to your situation, and whether you can use both, can save you years of saving.

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What each programme actually does

MyDeposit: a direct cash grant for the deposit

MyDeposit is a grant programme managed by the Ministry of Housing and Local Government (KPKT). The government deposits money directly into your conveyancing account to cover part of the 10% down payment on your first home. You do not repay it.

Key figures (as published by KPKT):

• Maximum aid: RM30,000, or 10% of the purchase price, whichever is lower.
• Property price range: RM80,000 to RM500,000.
• Applicant age: 21 years and above.
• Citizenship: Malaysian citizen only.
• Income ceiling: Gross household income below RM10,000 per month.
• Home status: Must be your first residential property; no existing property ownership in your household.
• Application: Via the KPKT e-home portal; application windows open periodically subject to annual allocation.

The grant goes toward the 10% down payment, reducing or eliminating the amount of cash you need to find upfront. If the bank later requires more than 10%, you are still responsible for the shortfall.

HCGS: a loan guarantee for buyers without a payslip

The Housing Credit Guarantee Scheme, administered by Syarikat Jaminan Kredit Perumahan Bhd (SJKP), is a Ministry of Finance agency. HCGS does not give you cash. Instead, SJKP acts as a guarantor to the bank, promising to cover losses if you default. This removes the bank’s biggest objection: irregular income.

Key figures (as published by SJKP):

• Financing cap: Up to RM500,000 (standard HCGS) or up to RM360,000 under the HCGS Madani variant.
• Tenure: Up to 35 years; two-generation financing is permitted.
• Guarantee fee: No fee charged to the borrower by SJKP.
• Applicant age: 18 years and above.
• Citizenship: Malaysian citizen.
• Income type: Designed for non-fixed income earners, self-employed workers, gig workers, farmers, and micro-entrepreneurs who cannot produce formal payslips.
• Property type: New launches, subsale, and auction properties are all eligible; low-cost and medium-cost houses included.
• How to apply: Through any participating bank or financial institution, not directly via SJKP.

HCGS does not reduce the down payment amount. You still need to come up with 10% yourself. What it does is make the other 90% financeable by the bank.

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Side-by-side comparison

Feature	MyDeposit	HCGS
What it provides	Cash grant for down payment	Loan guarantee for the bank
Solves	”I don’t have the 10%"	"The bank won’t approve me”
Maximum benefit	RM30,000 (or 10% of price)	Financing up to RM500,000
Repayment required	No	No (guarantee, not a loan)
Fee to borrower	None	None
Income requirement	Household income below RM10,000/month	Non-fixed income earners; gig or self-employed focus
Property price range	RM80,000 to RM500,000	Up to RM500,000 (Madani: RM360,000)
Minimum applicant age	21	18
Administering body	KPKT	SJKP (under Ministry of Finance)
Apply via	KPKT e-home portal	Participating banks
Application availability	Periodic windows; subject to budget allocation	Ongoing through participating banks

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Who benefits most from each

MyDeposit suits you if:

• You have stable employment with a payslip, so a bank will approve your loan without any guarantee.
• You simply lack enough savings for the 10% down payment.
• Your household income is below RM10,000 per month.
• You are buying a property priced between RM80,000 and RM500,000.

The grant plugs the cash gap between what you have saved and what the developer or seller requires on signing day.

HCGS suits you if:

• Your income is real but irregular: freelance projects, hawker stall, Grab driving, micro-business, agriculture.
• Banks have declined your loan because you cannot produce three months of payslips or a letter of employment.
• You already have the down payment funds, but you cannot get approved for the remaining financing.

HCGS changes the bank’s answer from “no” to “yes” by putting SJKP’s name behind the loan.

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Can you stack MyDeposit and HCGS together?

Yes, in principle, the two programmes address different problems and are not mutually exclusive. MyDeposit covers the down payment cash requirement, while HCGS covers the loan approval hurdle. A self-employed first-time buyer with insufficient savings could theoretically apply for both: use MyDeposit to get the cash for the 10% deposit, then use HCGS so that the bank approves the 90% loan.

However, confirm eligibility for each programme independently before assuming you qualify for both. KPKT and SJKP operate separately, and approval for one does not guarantee approval for the other. Your household income, credit record, and the property price must satisfy the conditions of each programme individually.

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Other things to consider

MyDeposit allocation runs out

MyDeposit is budget-funded and operates on application windows. If the allocation for a given year is exhausted, no further applications are accepted until the next window opens. Check the KPKT e-home portal for the current status before planning your purchase timeline around this grant.

HCGS does not reduce your total debt

Because HCGS is a guarantee rather than a subsidy, you are still borrowing the full loan amount. Your monthly repayments and total interest cost are unchanged compared to an unguaranteed loan at the same rate. HCGS removes the approval barrier; it does not make the purchase cheaper.

Your credit record still matters for HCGS

SJKP guarantees the loan to the bank, but the bank still does its own assessment. A poor CCRIS or CTOS record can still lead to rejection at the bank level. Before applying, check your CCRIS report via Bank Negara Malaysia and your CTOS score to identify any issues that need resolving first.

Other overlapping schemes exist

PR1MA, Rumah Selangorku, and i-Miliki are separate programmes with their own eligibility rules. Some target specific income groups; others apply only in certain states. If you are comparing all available options, see our guide on state housing schemes in Malaysia and our breakdown of i-Miliki vs MyHome.

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Key takeaways

• MyDeposit is cash in hand of up to RM30,000, applied toward the 10% deposit. You do not repay it.
• HCGS is a government guarantee that allows banks to approve home loans for buyers without payslips. It does not give you money.
• MyDeposit has a household income cap of below RM10,000 per month; HCGS targets non-fixed income earners but has no stated income ceiling for the guarantee itself.
• Both programmes cover properties up to RM500,000 and are restricted to first-time buyers.
• You can potentially use both in the same purchase, but eligibility must be met for each independently.
• MyDeposit applications are time-limited and subject to budget availability; HCGS is available on an ongoing basis through participating banks.
• Neither programme reduces the total amount you borrow or the monthly repayments you owe.

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Frequently asked questions

Is MyDeposit a loan or a grant? It is a grant. The money is paid directly into your conveyancing account and is not repayable. You do not owe KPKT anything after the property purchase is complete, provided you comply with the programme’s conditions (including the requirement that the property be owner-occupied for a minimum period).

Can a salaried employee apply for HCGS? HCGS was specifically designed for non-fixed income earners who struggle to get standard bank approval. Salaried employees with payslips generally qualify for conventional home loans without needing a guarantee. If you are salaried and your loan was declined, the issue is more likely your DSR (debt service ratio) or credit record than your income type.

What happens if I sell the MyDeposit property quickly? KPKT imposes conditions on owner-occupation. If you sell or transfer the property before completing the minimum holding period stipulated in your grant agreement, you may be required to refund the grant amount. Always read the terms before applying.

Does HCGS cover apartments and condominiums? Yes. HCGS covers all residential property types including low-cost flats, medium-cost apartments, condominiums, and landed houses, whether new launch, subsale, or auction, as long as the property is for owner-occupation and meets the financing cap.

How do I check if a bank participates in HCGS? Visit sjkp.com.my for the current list of participating financial institutions. Applications go directly to the bank branch, not to SJKP’s office. The bank submits the guarantee request to SJKP on your behalf during the loan processing stage.