Independent buyer guide. Written by DMS Jason Chan (REN 78007). Tax rules, exemptions and bank policies change. Figures here are indicative; confirm them with your banker and solicitor before you commit.
Quick answer: To buy your first home in Malaysia, start with your loan eligibility, not the showroom. Banks look at your debt service ratio (DSR): your total monthly commitments, including the new loan, should stay below roughly 60% to 70% of net income. A first residential property priced at RM500,000 or below is exempt from stamp duty on the transfer and the loan agreement, for sale and purchase agreements signed from 1 January 2026 to 31 December 2027. After that it is six steps: check DSR, shortlist, view, book, apply for the loan, sign.
Your debt service ratio is the share of your income that goes to monthly debt. Add up your car loan, personal loans, PTPTN and credit card commitments, then add the instalment for the home you want. Banks approve most comfortably when that total stays below roughly 60% to 70% of net income.
As a guide from our own worked example: a RM298,000 home on a 90% loan over 35 years comes to about RM1,400 a month, which fits a single income of roughly RM4,500 to RM5,000 with few other commitments. Your own figure depends on the rate and your commitments.
Use the DMS loan eligibility calculator · How to pass your home loan
Stamp duty on the transfer of ownership (the Memorandum of Transfer) is normally charged in tiers, and the loan agreement carries a further 0.5% of the loan amount.
| Portion of property price | Transfer stamp duty rate |
|---|---|
| First RM100,000 | 1% |
| RM100,001 to RM500,000 | 2% |
| RM500,001 to RM1,000,000 | 3% |
| Above RM1,000,000 | 4% |
For Malaysian citizens buying a first residential property at RM500,000 or below, both duties are fully exempt for agreements signed from 1 January 2026 to 31 December 2027. On a RM500,000 home that is RM9,000 of transfer duty plus about RM2,250 of loan duty.
Watch the cut-off: the exemption depends on the property price. A first home at RM510,000 does not get a partial waiver.
MOT and stamp duty explained · Government first-home schemes
Freehold vs leasehold and title types · New launch vs subsale · Commercial vs residential title
Keep your credit record clean for 6 to 12 months before you apply, and apply to more than one bank so you can compare the margin and rate.
Want to know what you can borrow before you view anything? Send your gross monthly income and existing commitments. I will estimate your eligibility and tell you which price range is realistic. No charge.
These start below the exemption threshold. Prices are SPA prices and change with availability.
It depends on the price and your other commitments. Banks generally want your total monthly commitments, including the new instalment, below roughly 60% to 70% of net income. As one example, a RM298,000 home on a 90% loan over 35 years is about RM1,400 a month.
Malaysian citizens buying a first residential property priced at RM500,000 or below are fully exempt from stamp duty on the transfer and the loan agreement, for sale and purchase agreements signed from 1 January 2026 to 31 December 2027.
The downpayment is the part of the price your loan does not cover. With a 90% loan it is 10% of the price. Some developer packages reduce the cash you pay upfront; ask what the current package covers.
Salary slips and bank statements for the last 3 to 6 months, your EPF statement, the latest EA form or tax filing and a copy of your IC. Self-employed buyers also need business registration and 6 months of business bank statements.
A new launch spreads payments over construction and often comes with a developer package, but you wait for completion. A subsale home is ready now but usually needs more cash upfront. The right choice depends on your savings and when you need to move in.
Independent buyer guide by DMS Jason Chan, REN 78007, EUM Realty Sdn Bhd [E(1)1708]. Figures are indicative and subject to bank approval, developer terms and the sale and purchase agreement. Tax exemptions and schemes change; confirm what is active before you book. Nothing on this page is financial, tax or legal advice.