Malaysia’s First-Home Stamp Duty Exemption: What It Covers and How Much It Saves
Last reviewed
Buying your first home in Malaysia? One of the simplest wins is the first-home stamp duty exemption — it can save you around RM11,250 in upfront tax on a RM500,000 home. Budget 2026 extended it to 31 December 2027. Two things are worth getting right, though: it now covers homes up to RM500,000 (the old 75% deal for pricier homes has ended, despite what many articles still say), and it cuts your upfront cost — not your monthly repayment, which is still down to your DSR.
It's one of several first-home schemes — see the full overview →
What's exempted
When you buy a home you normally pay stamp duty twice — and a first home gets both waived 100%:
- The transfer (MOT) — stamp duty on the Memorandum of Transfer that puts the property in your name.
- The loan agreement — stamp duty on your housing-loan documents.
It applies to sale-and-purchase agreements signed between 1 January 2026 and 31 December 2027 (under Budget 2026 / the Finance Act 2025).
Only up to RM500,000 now (the part most articles get wrong)
The current exemption is full (100%) for homes priced up to RM500,000, and nothing above that. You may still see articles quoting a 75% exemption for the RM500,001–RM1,000,000 band — that was part of the i-Miliki campaign, which ended on 31 December 2023 and was not renewed. Don't budget around it. If your home is above RM500,000, plan to pay the normal stamp duty on the portion as usual.
How much you actually save
Stamp duty on a transfer is tiered (1% on the first RM100,000, 2% up to RM500,000, then 3% higher up), and the loan agreement is a flat 0.5% of the loan. So for a RM500,000 first home with a 90% loan:
| Transfer (MOT): 1% on first RM100k + 2% on next RM400k | RM9,000 |
| Loan agreement: 0.5% of a RM450,000 loan (90%) | RM2,250 |
| Total stamp duty waived | ≈ RM11,250 |
That's about RM11,250 you don't have to find in cash on top of your deposit. Your exact figure depends on your price and loan amount.
Who qualifies, and how to claim
- Malaysian citizen buying their first home — you must never have owned a residential property before (including one inherited, gifted, or held jointly).
- A residential property priced up to RM500,000.
- SPA signed on or before 31 December 2027.
- There's no income limit for this exemption — it's about being a first-time buyer, not your salary.
You don't apply separately. Your conveyancing lawyer claims it through LHDN e-stamping when your documents are stamped, and you sign a statutory declaration confirming you're a first-time buyer — just make sure your lawyer knows you're claiming it.
It cuts upfront cost — not your monthly repayment
This is the part to be clear-eyed about. Waiving stamp duty saves you cash at the start — it makes the entry cheaper. But it doesn't change your loan amount or your monthly instalment, so it doesn't make the bank any more likely to approve you. That still comes down to your DSR (Debt Service Ratio) — your monthly commitments against your income. The exemption helps you afford to get in; your DSR decides whether you can afford to stay in. See how to lower your DSR → (And don't confuse this with the old Home Ownership Campaign, or HOC — that has ended.)
FAQ
Is there still a stamp duty exemption for first-time buyers in 2026?
Yes. Under Budget 2026, the first-home stamp duty exemption was extended to 31 December 2027. It applies to sale-and-purchase agreements signed between 1 January 2026 and 31 December 2027, and waives 100% of the stamp duty on both the transfer (MOT) and the loan agreement for eligible first homes priced up to RM500,000.
Is there still a 75% exemption for homes up to RM1 million?
No — and this is where a lot of older articles are out of date. The partial (75%) exemption for the RM500,001–RM1,000,000 band was part of the i-Miliki campaign, which ended on 31 December 2023 and was not renewed. The current exemption is full (100%) up to RM500,000 only; above RM500,000 there is no exemption. Always confirm the latest position with your conveyancing lawyer.
How much does it actually save me?
On a RM500,000 first home with a 90% loan, the standard stamp duty would be about RM9,000 on the transfer (MOT) plus RM2,250 on the loan agreement — roughly RM11,250 in total, which the exemption waives. The exact saving depends on your price and loan amount, but it is real, upfront cash you keep.
Do I need to apply for the exemption?
No separate application to LHDN is needed. Your conveyancing lawyer handles it through LHDN e-stamping when your documents are stamped, and you sign a statutory declaration confirming you are a first-time buyer. Make sure your lawyer knows you are claiming it.
Does the stamp duty exemption help me get approved for the loan?
No. It cuts your upfront cost — it does not change your loan amount or your monthly repayment, so it does not improve your loan eligibility. The bank still decides based on your DSR (Debt Service Ratio). The exemption helps you afford the entry costs; your DSR decides whether you can afford the home.
A note on accuracy
This is general educational information, not legal or financial advice. The first-home stamp duty exemption is provided under Budget 2026 / the Finance Act 2025; rates, the price ceiling and the qualifying period can change, and the fine print is administered by LHDN — figures here are current as of June 2026, so confirm the exact current terms with your conveyancing lawyer or LHDN (hasil.gov.my) before you rely on them. The standard stamp-duty figures are used to illustrate the saving; your actual amounts depend on your price and loan.
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