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Entry Costs of Buying a Property

BY Team Loanstreet

Updated 29 Apr 2022

When we talk about buying a property, the first cost that comes to mind is always the initial down payment. But is that all? Aside from the down payment, there are other entry costs such as legal fees, stamp duty, valuation fees and the real estate agent’s fee which are equally important, but usually overlooked.

What's covered in this article?

Here, we unveil to you the possible costs which you may incur when buying a property.

Try our Home Loan Calculator which is great for calculating your entry costs. Below we explain the different entry costs in more detail.

**Update 15/03/17: With the recent announcement of the fee structure revision in the Solicitors' Remuneration Order, there have been a few significant updates to the figures contained in this article.

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

Entry costs of buying a property

b. Stamp Duty

Entry costs of buying a property

The government is taking certain measures in order to further aid Malaysians with first home ownership. As such, the stamp duty exemption has been increased to 100%, limited to houses valued up to RM300,000.

Entry costs of buying a property

3. Costs related to Loan Agreement (Legal Fees + Stamp Duty)

a. Legal Fees

The legal fee percentage and structure for loan agreement is similar to the S&P legal fee structure (refer to table in 2a above). However, it will be based on the loan amount (unlike S&P that is based on the purchase price).

b. Stamp Duty

Entry costs of buying a property

4. Valuation Fees (Where formal valuations are required)

Entry costs of buying a property

5. Real Estate Agent’s Fee (Usually paid by the seller but may be charged to buyer instead)

Entry costs of buying a property

*Note: Real estate agent fees varies from 2 - 3% regardless of price. Cost is beared by developer and sellers in most instances.


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!

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About the Author

Team Loanstreet

Run by a professional human-sized team, get resourceful tips & guides from our very own library of financial articles that can help improve your financial lifestyle & make a well-informed money decision. We strive to provide you with the best service in helping you to get the most out of that DUIT!


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