This comes in the wake of the 2025 budget allocation of RM12.8 billion for the scheme, which guarantees loans of up to RM500,000 for first-time buyers.

In a statement, HBA said the allocation will support those without stable incomes, such as gig economy workers, in buying houses costing less than RM300,000.

“The gig economy has been a lifesaver to many of the rakyat who lost their jobs and resorted to becoming ride-hailing drivers, food-delivery riders and other forms of freelance work,” it said, adding that these employees deserve access to financing for asset purchases, including property.

HBA expressed concern over the existing RM10 billion guarantee, approved in Budget 2024, which applies to houses priced at about RM500,000, exceeding the association’s defined affordability threshold of RM150,000 to RM300,000.

“We hope that this time, the housing credit guarantee scheme will only be extended to first-time house buyers and only for affordable properties priced below RM300,000.

“The scheme should also be made available when purchasing secondary properties – existing completed properties – and not just developments from property developers,” it said.

The Real Estate and Housing Developers’ Association (Rehda) also welcomed the budget’s continued allocation of RM10 billion for 20,000 rakyat through the SJKP, which will benefit potential homebuyers without monthly income statements.

“These efforts speak volumes of the government’s intention to ensure homeownership for all rakyat, and to financially assist youths who are just starting their career to purchase homes,” Rehda president Ho Hon Sang said.

Ho also highlighted the step-up financing scheme – an initiative that Rehda has long advocated for – which provides lower initial repayment rates to help first-time homebuyers.

“We call upon financial institutions to also take heed of this move and introduce their own step-up financing schemes, thus allowing more Malaysians access to this innovative programme,” he added in a statement.