You earn a steady salary. You can handle the monthly loan payments. But one wall stands in your way: the down payment.<\/p>\n\n\n\n
For most first homes, the bank asks you to pay 10% of the price in cash, upfront. On a RM400,000 house, that is RM40,000<\/strong>. Add legal fees and other costs, and you may need RM50,000 or more before you even hold the keys.<\/p>\n\n\n\n Saving that much cash, while you pay rent and face rising prices, can feel impossible. This is the number one reason many Malaysians who can afford a home still cannot buy one.<\/p>\n\n\n\n Here is the good news. There is now a government-backed way to buy your first home with almost zero cash upfront<\/strong>. It is called the First Home Mortgage Guarantee Programme, or First Home MGP for short. This guide explains how it works, in plain language.<\/p>\n\n\n\n This topic comes with a few big words. Here is what they mean, in simple terms. Keep this handy as you read.<\/p>\n\n\n\n Here is the most important thing to understand. First Home MGP is a guarantee, not a loan.<\/strong><\/p>\n\n\n\n Cagamas does not give you the money. Your bank<\/strong> still gives you the home loan, just like normal. What Cagamas does is act as your guarantor<\/strong>.<\/p>\n\n\n\n Remember the word guide: a guarantor promises the bank that if you cannot pay, they will help cover part of the loss. So Cagamas stands behind you.<\/p>\n\n\n\n Why does this matter? Because when a bank sees less risk, it is willing to lend you the full price<\/strong> of the house, without asking for a big down payment first. The guarantee is what unlocks the door.<\/p>\n\n\n\n And the best part: Cagamas does not charge you any fee<\/strong> for this guarantee. It costs you nothing to be covered.<\/p>\n\n\n\n One honest point to know This is where zero down payment becomes real. Under First Home MGP, the bank can lend you up to 110%<\/strong> of your home’s price. Here is how that splits.<\/p>\n\n\n\n You can borrow the full purchase price<\/strong> of the property. That already removes the 10% down payment wall.<\/p>\n\n\n\n If your home costs below RM500,000<\/strong>, you can borrow an extra 10% on top. This extra amount covers your Financing Entry Costs<\/strong>, or FEC. These are the fees you must pay to complete a purchase, such as:<\/p>\n\n\n\n You can move into your new home with almost no cash upfront<\/strong>. The house is financed, and your entry costs are financed too.<\/p>\n\n\n\n For homes priced RM500,000 up to RM1 million<\/strong>, the bank can still lend you 100% of the price. You would then cover your own entry costs. Either way, the big down payment barrier is gone.<\/p>\n\n\n\n First Home MGP is built for everyday Malaysians. Here is who qualifies.<\/p>\n\n\n\n Before you shop, it helps to know your rough loan size. This free calculator gives you an estimate based on your income.<\/p>\n\n\n\n
\n\n\n\nTL;DR<\/h2>\n\n\n\n
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\n\n\n\nA Comprehensive Guide On Buying Your First Home with Zero Deposit<\/h2>
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What Is the First Home MGP?<\/h2>\n\n\n\n
<\/strong><\/em>Even though Cagamas backs the loan, you are still fully responsible<\/strong> for paying back the whole amount. The guarantee protects the bank, not your monthly duty. So borrow only what you can comfortably repay.<\/p><\/blockquote><\/figure>\n\n\n\nThe “110% Financing” Magic<\/h2>\n\n\n\n
100% for the house<\/h3>\n\n\n\n
An extra 10% for your costs<\/h3>\n\n\n\n
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The result<\/h3>\n\n\n\n
Are You Eligible? The Simple Checklist<\/h2>\n\n\n\n
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Good to know: each bank can set its own income rules under the scheme. Some may use a lower limit, for example RM5,000 for a single applicant or RM10,000 for a joint application. Always confirm the exact limit with the bank you choos<\/em><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n See how much you might borrow<\/h3>\n\n\n\n