Islamic Products
Islamic First Home Mortgage Guarantee Programme (FHMGP-i)
About FHMGP-i
-
Islamic First Home Mortgage Guarantee Programme (“FHMGP-i”) 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-i 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 the eligible first-time home buyers in the B40 and M40 income segment.
-
FHMGP provides participating FIs the avenue to enhance its capital management while effectively managing its portfolio and credit risk.
Key Product Features
| No. | Description | Eligibility Criteria / Key Features |
|---|---|---|
| 1. | Customer |
|
| 2. | Maximum Monthly Income | RM15,000 |
| 3. | Maximum Property Value | RM1 million |
| 4. | Maximum Financing Obligation To Income Ratio (FTI)
|
Based on the respective participating FI’s underwriting policy / standard DSR |
| 5. | Maximum Financing- to-value (“FTV”)
|
110% (additional 10% for the financing on MRTA/ MRTT / legal fees / valuation fees) Note: 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-i
To home buyers
- Increased financing options.
- Lower initial costs by reducing the need for a large down payment, making home ownership 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 Institution
- 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 financing by freeing up capital.
