1. Down payment
10% of the total purchase price OR the difference between the loan amount and the purchase price.
2. Costs related to S&P Agreement (Legal Fees + Stamp Duty)
a. Legal Fees
| Price Range | Legal Fee |
|---|---|
| Up to RM 50,000 | 1.25 (subject to a minimum of RM500) |
| RM 500,001 – RM 7.5 million | 1.00 |
| Above RM7.5 million | Negotiable (not exceeding 1%) |
b. Stamp Duty
| Purchase price | Charge (%) |
|---|---|
| First RM 100,000 | 1.00 |
| RM101,000 – RM500,000 | 2.00 |
| RM500,001 – RM 1 juta | 3.00 |
| Above RM1 million | 4.00 |
Starting in 2024, first-time homebuyers purchasing properties worth up to RM500,000 will enjoy a full stamp duty exemption. For properties priced between RM500,000 and RM1 million, you’ll receive a 75% exemption. This policy is valid until 31 December 2025.
3. Costs related to Loan Agreement (Legal Fees + Stamp Duty)
a. Legal Fees
The legal fee percentage and structure for loan agreements are similar to the S&P legal fee structure (refer to Table 2a above). However, it will be based on the loan amount (unlike S&P which is based on the purchase price).
b. Stamp Duty
| Loan Amount | Charge |
|---|---|
| Any amount | 0.5% |
4. Valuation Fees (Where formal valuations are required)
| Value | Rate (%) |
|---|---|
| First RM100,000 | 0.250 |
| Next 1,900,000 | 0.200 |
| Next 5,000,000 | 0.167 |
| Next 8,000,000 | 0.125 |
| Next 35,000,000 | 0.100 |
5. Real Estate Agent’s Fee (Usually paid by the seller but may be charged to a buyer instead)
| Purchase price | Charge |
|---|---|
| Any amount | 3.000% |
*Note: Real estate agent fees vary from 2 - 3% regardless of price. Cost is beared by developers and sellers in most instances.
Are you ready?
There are people who make the mistake of underestimating the affordability of a property before they make a purchase. In most cases, it is the lack of knowledge regarding the hidden entry costs that causes complications.
If you are considering a property purchase, Loanstreet has a Home Loan Calculator that helps you to visualize not just the monthly installments, but also the Entry Costs involved before you purchase any property.
Once you have determined its affordability, remember to make use of our Home Loan Comparison tool to find the cheapest loans available for your needs!
*The above article is intended for informational purposes only. Loanstreet accepts no responsibility for loss that may arise from reliance on information contained in the articles.
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