What every first home buyer in Malaysia needs to know
2026 rules updated for the latest LHDN and Bank Negara policies.
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First-time buyer stamp duty exemption
Buyers purchasing their first home priced RM500,000 and below are exempt from MOT stamp duty. This exemption runs until December 2027. For the loan stamp duty (0.5%), you still pay but the bigger MOT portion is waived.
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How much can you borrow?
Malaysian banks typically approve home loans where your total debt repayments (DSR) don't exceed 70% of net income though most aim for under 60%. With a joint application, you combine both incomes which often unlocks significantly higher loan amounts.
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The real cost of buying beyond the price
On top of the property price: 10% down payment, stamp duty on loan agreement (0.5%), legal fees (roughly 1% for SPA + MOT), valuation fee (RM300 600), and MRTA insurance. Budget 13 15% of property price in upfront costs.
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My First Home Scheme (Skim Rumah Pertamaku)
For first-time buyers aged 18 40 with income below RM5,000/month. Allows 100% financing (zero down payment) on properties up to RM500,000. Participating banks include Maybank, CIMB, RHB, Public Bank, and others.
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Which area should a first buyer consider?
In Klang Valley, Shah Alam and Cyberjaya offer the best value-to-connectivity ratio for first buyers median PSF RM280 320 with good MRT/LRT access. In JB, Iskandar Puteri has strong upside due to RTS Link. Ipoh remains Malaysia's most affordable lifestyle city at RM228/sqft median.
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Once you buy you may want to rent it out
Many first-time buyers rent out their property to offset the mortgage. If you do, you'll need a proper tenancy agreement legally required to be stamped at LHDN. TanpaEjen generates one in 30 minutes for RM79, no lawyer needed.