Some home buyers may not aware that they could possibly get some benefits when purchasing a house. The benefits come in the form of stamp duty and loan amount which could save a lot of money. Some home buyers could also “rent” a house and “buy” the house in the coming years. Let’s see what are the benefits a home buyer could get.
Full Stamp Duty Exemption Until 2025 for First Home Buyers
First Home Buyers are entitled to full stamp duty exemption when purchasing residential properties between 1 Jan 2021 to 31 Dec 2025. The stamp duties exempted are applied to memorandum of transfer (MOT) and loan agreements under approved Budget 2021.
| Purchase Price | MOT Stamp Duty | Loan Documentation Stamp Duty | Your Saving |
| RM 300,000 | RM 5,000 | RM 1,350 | RM 6,350 |
| RM 350,000 | RM 6,000 | RM 1,575 | RM 7,575 |
| RM 400,000 | RM 7,000 | RM 1,800 | RM 8,800 |
| RM 450,000 | RM 8,000 | RM 2,025 | RM 10,025 |
| RM 500,000 | RM 9,000 | RM 2,250 | RM 11,250 |
However, the above exemption only applies to properties priced up to RM500,000, including new projects and sub-sales.
Click here to calculate MOT and loan documentation fees for any amount of purchase price.
Home Ownership Campaign (HOC) Malaysia 2020-2021
In fighting the economy recession during 2020-2021, government has extended HOC Campaign to 31 Dec 2021. All Malaysian home buyers are entitled to partial to the full stamp duty exemption for memorandum of transfer (MOT) and loan agreements when purchasing new launch residential properties.
Furthermore, developers are required to provide at least 10% discount to buyers.
Click here to see the HOC registered residential projects.
If you wish to know HOC properties in Johor Bahru, do not hesitate to contact me.
Rent-To-Own (RTO) Schemes from Developers
Many developers have introduced Rent-To-Own Schemes to all buyers across Malaysia. Buyers do not need to pay a down payment with an RTO based properties.
RTO scheme is essentially operating under a lease agreement. Buyers have an option to purchase the property under a specified price after a particular renting period. Such renting period normally is between 3-5 years.
In simple words, “buyers can try renting a property under a specified period before deciding to buy (or not to buy)”.
If you wish to know about RTO properties in Johor Bahru, do not hesitate to contact me.
1Malaysia People’s Housing Programme (PR1MA) rent-to-own (RTO) scheme
PR1MA rent-to-own (RTO) scheme for residential properties is scheduled to be launched in June 2021. Such scheme provides (M40) income group who to purchase PR1MA houses without securing a loan with the bank.
RTO is a form of rent-to-buy where a buyer has an option to purchase the house a specific future date after a renting (or leasing) the house for a specified period. Buyer needs to sign “lease to purchase” agreement with the developer.
First Home Buyers who do not have down payment may explore this PR1MA rent-to-own (RTO) scheme.
Click here to explore the PR1MA project.
*[Latest] reopening date for (PR1MA) rent-to-own (RTO) scheme is pending to be confirmed.
My First Home Scheme (Skim Rumah Pertamaku, SRP)
First Home Buyers who do not have money for paying down payment may consider SRP scheme. Under this scheme, buyers may secure 110% financing from participating financial institutions.
Click here to see participating banks.
