Buying with no deposit — legal ways & risks
Quick answer: Banks usually finance 90%, so a 10% deposit is needed. Legal ways to cut or avoid it: SJKP (government guarantee, up to 110% margin), LPPSA for civil servants, EPF Akaun Sejahtera withdrawals, Perumahan Kasih Johor's RM5,000 first-home grant, and developer rebates. Avoid 'cashback' schemes that inflate the SPA price — they're risky and can amount to fraud.
Key facts
| Usual margin | 90% (10% deposit) |
|---|---|
| SJKP | Up to 110% margin |
| EPF | Akaun Sejahtera |
| Perumahan Kasih Johor | RM5,000 + RM2,000 |
5 legal ways
| Way | For whom | Key point |
|---|---|---|
| SJKP | Self-employed, gig workers, irregular income, first-home buyers | Government guarantee; up to 110% margin at participating banks |
| LPPSA | Civil servants | Limits by grade and eligibility; low profit rate |
| EPF Akaun Sejahtera | EPF members | Can cover the deposit + 10% of the price |
| Perumahan Kasih Johor | Johor voters buying a first home | RM5,000 purchase + RM2,000 move-in |
| Developer rebates / promotions | New-launch buyers | Banks finance on the net price after rebates |
Risks of 100%+ financing
- A higher instalment and a tighter DSR.
- If prices fall, the loan can exceed the home's value.
- No cushion if you need to sell early.
Avoid "cashback": schemes that inflate the SPA price so the loan is bigger and the buyer gets cash are risky — you carry more debt, and giving false information to a bank is an offence.
Don't forget costs beyond the deposit: legal fees, valuation and stamp duty (if not exempt). See real buying costs.
Frequently asked questions
Can I buy a house with no deposit in Malaysia?
In some cases — for example SJKP with up to 110% margin, LPPSA for civil servants, or by using EPF Akaun Sejahtera and state aid to cover the deposit.
What is SJKP's 110% financing?
SJKP guarantees banks so they can finance up to 110% — including some costs — for first-home buyers who struggle to get a normal loan, especially the self-employed.
Are house cashback schemes legal?
Schemes that inflate the SPA price to get a bigger loan are risky and can involve giving false information to a bank. Avoid them.
How much cash do I need even without a deposit?
You still need legal fees, valuation, utility deposits and moving costs — set aside at least 2–3% of the price if stamp duty is exempt.