The cash you need on top of the price
Besides the down payment, a buyer pays legal fees for the sale and purchase agreement (SPA) and the loan, stamp duty on the transfer (MOT) and on the loan agreement, and the lawyer's disbursements. For a new launch, developer campaigns often cover some of these, most commonly the SPA and loan legal fees, so always ask for the current package before you compare projects.
Here is what a RM500,000 new launch with a 90% loan comes to, before any developer package or disbursements:
| Item | Malaysian buyer | First home (exemption) | Foreign buyer |
|---|---|---|---|
| Down payment (10%) | RM50,000 | RM50,000 | RM50,000 |
| SPA legal fee (developer-sale scale) | RM4,375 | RM4,375 | RM4,375 |
| Loan legal fees (incl. deed of assignment) | RM4,500 | RM4,500 | RM4,500 |
| Service tax on legal fees (8%) | RM710 | RM710 | RM710 |
| Stamp duty on the transfer (MOT) | RM9,000 | RM0 · exempt | RM40,000 · 8% flat |
| Stamp duty on the loan (0.5%) | RM2,250 | RM0 · exempt | RM2,250 |
| Estimated cash needed | RM70,835 | RM59,585 | RM101,835 |
If the developer's package covers the SPA and loan legal fees, the Malaysian buyer's figure drops to about RM61,250, and a first-time buyer's to the RM50,000 down payment. Banks set their own loan terms for foreign buyers; the table keeps the same 90% loan so the stamp duty difference is easy to see.
Work out your own numbers in the upfront cost calculator.
Stamp duty on the transfer (MOT)
Stamp duty on the memorandum of transfer is charged on the higher of the price or the market value, in bands, for Malaysian citizens and permanent residents:
| Portion of the price | Rate | Duty on that portion |
|---|---|---|
| First RM100,000 | 1% | RM1,000 |
| RM100,001 – RM500,000 | 2% | up to RM8,000 |
| RM500,001 – RM1,000,000 | 3% | up to RM15,000 |
| Above RM1,000,000 | 4% | 4% of the excess |
Worked examples (calculated from the scale): RM500,000 → RM9,000; RM800,000 → RM18,000; RM1,200,000 → RM32,000.
First-home exemption: today and the Budget 2027 proposal
The current exemption
A Malaysian citizen buying a first residential home worth up to RM500,000 pays no stamp duty on the transfer or on the loan agreement, for SPAs signed up to 31 December 2027. You must never have owned a residential property, alone or jointly, including by inheritance or gift; the exemption covers one unit only and is claimed with a statutory declaration. It is all-or-nothing: a home priced above RM500,000 gets no exemption under the current order.
What Budget 2027 proposes
Budget 2027, tabled on 9 October 2026, proposes a wider exemption for SPAs signed from 1 January 2027 to 31 December 2030: a full exemption for first homes up to RM500,000, and for homes up to RM750,000, a full exemption on the first RM500,000 and 50% on the balance. On a RM700,000 first home that would cut the transfer duty from RM15,000 to about RM3,000. This is a proposal until the exemption order is gazetted, and the detailed conditions are not yet published, so check the final rules before you sign.
Stamp duty on the loan agreement
The loan (financing) agreement is stamped at 0.5% of the loan amount: RM5 for every RM1,000 borrowed. A RM450,000 loan attracts RM2,250. Eligible first-time buyers under the exemption above pay nothing.
Legal fees under the Solicitors' Remuneration Order 2023
Conveyancing fees follow a scale set by the Solicitors' Remuneration Order 2023, in force since 15 July 2023. Buying from a developer under the Housing Development Act uses the reduced Table B, for both the SPA and the loan documents; sub-sale purchases use the full Table A.
| Price or loan amount | Developer purchase (Table B) | Sub-sale (Table A) |
|---|---|---|
| Up to RM50,000 | RM500 | RM500 (Table A minimum) |
| RM50,001 – RM250,000 | 75% of Table A (min RM500) | 1.25% (min RM500) |
| RM250,001 – RM500,000 | 70% of Table A | 1.25% |
| RM500,001 – RM1,000,000 | 65% of Table A | 1.25% on the first RM500k, 1% after |
| Above RM1,000,000 | 50% of Table A | 1.25% on the first RM500k, 1% after |
A deed of assignment or other subsidiary loan document adds 10% of the full Table A fee, between RM500 and RM2,000. Lawyers may discount Table A fees by up to 25%, but no discount is allowed on Table B. Service tax of 8% is added to legal fees, and disbursements (searches, registration, courier and so on) are charged at cost. If a purchase is aborted, the fee is capped at half the scale fee unless the work was substantially done.
Foreign buyers pay 8%
From 1 January 2026, transfers of residential property to foreign individuals who are not Malaysian permanent residents, and to foreign companies, are stamped at a flat 8%. Non-residential property stays at a flat 4%. Permanent residents pay the normal 1–4% scale. See our guide for foreign buyers.
Stamp duty self-assessment from 2027
LHDN is moving stamp duty to self-assessment in phases. Transfers of real property that do not need a JPPH valuation move to self-assessment on 1 January 2027: the buyer, through the lawyer, declares and pays the duty on LHDN's e-Duti Setem system. Your lawyer will handle the filing, but the responsibility for a correct declaration sits with the buyer.
Ways to bring the upfront cost down
- Developer packages. EXSIM campaigns often include free SPA and loan legal fees, and sometimes rebates or furnishing. Packages change monthly, so ask us for this month's.
- First-home exemption. If you qualify, the stamp duty on a home up to RM500,000 is waived (more under the Budget 2027 proposal from 2027).
- Green financing. RHB and EXSIM offer up to 110% financing on eligible green-certified EXSIM homes, covering the full price plus insurance and some entry costs.
- EPF. Savings in your EPF Akaun Fleksibel can be withdrawn in any amount from RM50 and used towards the down payment or fees.
Sources
- LHDN · Stamp duty guideline (30 Jun 2026)
- PwC Malaysian Tax Booklet · Stamp duty
- MOF · Budget 2027 tax measures
- Stamp Duty (Exemption) Order 2021, P.U.(A) 53/2021
- Malaysian Bar · SRO 2023 (Circular 185/2023)
- Malaysian Bar · SRO 2023 tables (Circular 258/2023)
- LHDN · Stamp duty self-assessment
- PwC · Service tax
- The Edge · EXSIM × RHB green financing
General information only, not legal, tax or financial advice. Rules and budget proposals change; confirm your own position with your lawyer, banker or tax adviser before you commit.