Budget 2027, tabled on Friday, 9 October 2026, keeps the full stamp duty exemption for first homes up to RM500,000 and adds partial relief up to RM750,000: the first RM500,000 is fully exempt and the remaining amount gets a 50% exemption. Both apply to SPAs executed from 1 January 2027 to 31 December 2030. The government also proposed up to RM20 billion in SJKP housing loan guarantees to help about 80,000 first-time buyers, especially the self-employed. No new Home Ownership Campaign (HOC) was announced.
What first-time home buyers got
What Budget 2027 announced for home buyers
Prime Minister and Finance Minister Anwar Ibrahim tabled Budget 2027 in the Dewan Rakyat on 9 October 2026. These are the housing measures confirmed by multiple news reports on the day:
| Measure | What was announced | Who it helps |
|---|---|---|
| Stamp duty, first homes up to RM500,000 | Full exemption on the instrument of transfer and the loan agreement | First-time buyers (most B40 and M40 purchases) |
| Stamp duty, first homes up to RM750,000 | Full exemption on the first RM500,000, plus 50% exemption on the remaining amount | First-time buyers in the RM500k–RM750k band (new) |
| Qualifying period | SPAs executed from 1 January 2027 to 31 December 2030 | Buyers planning over the next four years |
| SJKP housing loan guarantees | Up to RM20 billion, expected to help about 80,000 first-time buyers | Self-employed and people without fixed incomes |
| Abandoned housing projects | Full stamp duty exemption for rescue contractors/developers and original purchasers, 1 Jan 2027 to 31 Dec 2030 | Buyers stuck in abandoned projects |
| Affordable housing | Nearly RM1 billion for Rumah Mesra Rakyat and Program Residensi Rakyat; Bandar MADANI Bukit Jalil phase 1 registration opens 12 October | B40 and lower-M40 households |
| Home Ownership Campaign (HOC) | Not announced | — |
A worked example: RM750,000 first home
Using the standard stamp duty scale for the transfer instrument (1% on the first RM100,000, 2% up to RM500,000, 3% above that), a RM750,000 home would normally attract about RM16,500 in transfer duty. Under the proposal, the first RM500,000 portion (RM9,000) is fully exempt and the remaining RM7,500 is halved, so you would pay roughly RM3,750, a saving of about RM12,750 on the transfer alone.
💡 DMS illustration, not an official calculation. How the 50% relief applies to the loan agreement, and the exact eligibility rules, will be set out in the Finance Bill and official guidelines. Always confirm your figures with your lawyer.
The first-home stamp duty exemption, explained
Right now, eligible first-time buyers of a home priced up to RM500,000 do not pay stamp duty on the transfer document (the memorandum of transfer) or on the loan agreement. Budget 2027 proposes keeping this full exemption for SPAs executed from 1 January 2027 to 31 December 2030. Here is what it is worth on a RM500,000 home with 90% financing, using Juwai IQI’s worked example:
| Item (RM500,000 home, 90% loan) | Stamp duty normally payable |
|---|---|
| Transfer instrument (MOT) | RM9,000 |
| Loan agreement | RM2,250 |
| Total saved by an eligible first-time buyer | RM11,250 |
That is real money at the start of a purchase, when cash is tightest. According to NAPIC 2025 data cited by Juwai IQI, about 77.2% of residential transactions fall at RM500,000 or below, so this one measure touches most Malaysian home buyers.
For the full checklist of who qualifies and the other upfront costs, see our First Home Buyer Malaysia guide (or the Bahasa Malaysia version).
SPA date vs booking date: the detail that catches buyers
Eligibility is tied to the date your Sale and Purchase Agreement (SPA) is executed, not the date you paid the booking fee. With new launches, there can be weeks or months between booking and SPA signing.
💡 My practical view: if you book a unit late in a year when an exemption is due to end, check with your lawyer and the developer when the SPA will actually be signed. The booking receipt alone does not lock in the benefit.
What developers asked for, and what they got
Before the Budget, the Real Estate and Housing Developers’ Association (Rehda) submitted its wishlist. The housing points that mattered most to buyers:
- Stamp duty relief for RM500,000 to RM1 million homes, with a tiered mechanism for 2027 purchases.
- A special Home Ownership Campaign (HOC) aimed at unsold completed homes. In Rehda’s own survey, 59% of 181 developers reported unsold stock as of 30 June.
- Wider access to the Housing Credit Guarantee Scheme (SJKP) for young buyers, the self-employed and people with non-traditional income.
- Stepped-up financing that allows lower repayments in the early years.
What happened on Budget day: the government adopted a partial version of the first request (tiered relief up to RM750,000, not RM1 million) and expanded SJKP guarantees for people with irregular income, but no new HOC was announced. Rehda welcomed the measures and says it will keep pushing for eligibility up to RM1 million and an HOC revival for unsold completed homes.
What to do now that Budget 2027 is out
My practical view as an agent, depending on your budget:
- First home up to RM500,000: nothing changes for the worse. The full exemption continues, so choose the right home and get your loan in order. Try our property loan calculator or read the DSR guide.
- First home between RM500,000 and RM750,000: this is the group that gains most. The new partial relief is proposed for SPAs executed from 1 January 2027, so the SPA signing date matters. Talk to your lawyer and the developer about timing before you sign.
- Self-employed or irregular income: watch for the SJKP guarantee details. It could make loan approval easier for people banks usually find hard to assess.
- Above RM750,000: no new stamp duty relief was announced, so negotiate on rebates and packages instead. See our guide to negotiating in today’s market.
Remember that Budget measures are proposals until they are passed in the Finance Bill and the official guidelines are published. I will keep this article updated as details come out.
Frequently asked questions
Will the first-home stamp duty exemption continue after Budget 2027?
Does stamp duty exemption depend on the booking date or the SPA date?
What is the Home Ownership Campaign (HOC), and is it coming back?
Not sure how Budget 2027 affects your purchase?
WhatsApp DMS Team. We will check your eligibility, estimate your upfront costs and shortlist homes that fit, free of charge.
About the author: Jason Chan (DMS Jason Chan)
Jason is a registered real estate negotiator (REN 78007) and founder of DMS Team, a property consultancy registered under EUM Realty Sdn Bhd [E(1)1708] with consultants across Kuala Lumpur and Johor Bahru. He researches and reviews every market analysis published on dms-team.com.
This article is general information as at 9 October 2026, written from an agent’s practical perspective. It is not financial, tax or legal advice. Eligibility and Budget measures should be confirmed with your lawyer, bank and official government announcements.
Sources: Malay Mail: Budget 2027 stamp duty exemption; The Star: Budget 2027 stamp duty exemptions; EdgeProp: Budget 2027 housing measures; Malay Mail: Rehda reaction; iMoney: Budget 2027 pre-budget preview; Juwai IQI: Budget 2027 stamp duty exemption for first home buyers; Malay Mail: Rehda Budget 2027 wishlist; The Star: M40 and B40 welfare a key focus for Budget 2027.
Last updated 9 October 2026 · DMS Jason Chan, REN 78007