Benefits for Malaysian Home Buyers


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 PriceMOT Stamp DutyLoan Documentation Stamp DutyYour Saving
RM 300,000RM 5,000RM 1,350RM 6,350
RM 350,000RM 6,000RM 1,575RM 7,575
RM 400,000RM 7,000RM 1,800RM 8,800
RM 450,000RM 8,000RM 2,025RM 10,025
RM 500,000RM 9,000RM 2,250RM 11,250
Table 1 Examples for stamp duty exemption for memorandum of transfer (MOT) and loan agreements (loan 90% of the purchase price)

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.

  • For residential houses priced between RM300,000 to RM1 million, full stamp duty exemption for memorandum of transfer (MOT) and loan agreements
  • For residential houses priced more than RM1 million until RM 2.5 million, stamp duty exemption for memorandum of transfer (MOT) only applies for first RM 1 million. Full stamp duty exemption applies to loan agreement up to RM 2.25 million.

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.

First Home Buyers need to qualify for several criteria:

  1. Maximum gross monthly
  2. For joint family applicants, the maximum income is capped at RM10,000.
  3. For individual applicants, the maximum income is capped at RM5,000.
  4. Applicants must have a clean record showing no impaired financing over the past 12 months.
  5. Only applies to residential properties of up to RM500,000 in both new projects and sub-sales houses.
  6. Applicants whose monthly gross household income less than RM5,001 and purchase a house priced up to RM300,000 must attend financial education courses provided by AKPK.

Click here to see participating banks.