Conventional Products

First Home Mortgage Guarantee Programme (FHMGP)

First Home Mortgage Guarantee Programme (FHMGP)


  • First Home Mortgage Guarantee Programme (“FHMGP”) is undertaken by Cagamas SRP Berhad (“Cagamas SRP”), a sister company of Cagamas Berhad and is wholly owned by Cagamas Holdings Berhad.

  • The objective of the FHMGP is to enable eligible first-time home buyers to obtain full home financing from financial institutions (“FIs”), making it easier for them to purchase their first home sooner.

  • FHMGP provides mortgage guarantee to participating FIs, allowing them to offer home financing up to 110% for eligible first-time home buyers in the B40 and M40 income segments.

  • FHMGP provides participating FIs with the avenue to enhance its capital management while effectively managing its portfolio and credit risk.

  • FHMGP is available for both conventional and Islamic home financing products.

Key Product Features

No. Description Eligibility Criteria / Key Features
1. Borrower
  • Malaysian citizen
  • First-time home buyer
  • Single/joint applicants
  • Salaried worker/self-employed (including gig worker)
2. Maximum Monthly Income RM15,000
3. Maximum Property Value RM1 million
4. Maximum Debt Service Coverage Ratio (“DSCR”) Based on the respective participating FI’s underwriting policy / standard DSR
5. Maximum Loan-to- value (“LTV”) 110% (additional 10% for the financing on MRTA/ MRTT / legal fees / valuation fees)

Loans with LTV >100% to 110% is only applicable for applicants with maximum gross monthly income of RM5,000 and buying a property ≤RM300,000
6. Maximum Financing Tenure 35 years or up to age 70, whichever is shorter
7. Guarantee Protection Up to 20% on a first loss basis (from LTV > 90% - 110%)


Benefits of FHMGP

To home buyers

  • Increased financing options.
  • Lower initial costs by reducing the need for a large down payment, making homeownership more accessible to more Malaysians.
  • Designed to support eligible buyers secure financing for their first home purchase sooner. 
  • Promotes home ownership among lower and middle-income groups (B40 and M40), supporting broader financial inclusion.

To Financial Institutions

  • Transfers credit risk.
  • Capital relief is based on BNM Risk Weighted Capital Adequacy Framework.
  • Facilitates the management of portfolio concentration risk.
  • Improves the Capital Adequacy Ratio.
  • Maintains asset expansion and facilitates the growth of additional loans by freeing up capital.

Business Enquiry

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