The 10% deposit is only the start. Here is every cost you need to budget before you sign — stamp duty, legal fees, valuation, disbursements and first-buyer exemptions explained.
This guide is for general information. Costs vary by property, loan margin and lawyer. Consult your solicitor or banker for a binding estimate before committing.
First-time buyers in Malaysia are often caught off guard by how much cash they actually need on completion day. The 10% booking deposit (earnest deposit + SPA deposit) is widely quoted — but it is only the first of several upfront payments. By the time the Sale and Purchase Agreement is signed and the loan is disbursed, you will also have paid:
Depending on the property price and whether you qualify for first-buyer exemptions, these extra items add 3–7% on top of the 10% deposit — making the real upfront requirement 13–17% of the property price.
| Cost item | Typical range | Paid to |
|---|---|---|
| 10% deposit (earnest + SPA balance) | 10% of purchase price | Seller (via solicitor's stakeholder account) |
| MOT stamp duty | 1–4% tiered on purchase price | LHDN (via solicitor) |
| Loan agreement stamp duty | 0.5% of loan amount | LHDN (via bank's solicitor) |
| SPA legal fees | 1.25% on first RM500k (reducing scale) | Your solicitor |
| Loan legal fees | 1% on first RM500k loan (reducing scale) | Bank's solicitor |
| Valuation fee | RM400 minimum; 0.25–0.5% of value | Registered valuer |
| Disbursements & searches | RM1,000 – RM3,000 | Various |
In a Malaysian sub-sale transaction, the deposit is typically paid in two stages:
Together these make up the 10% deposit. The remaining 90% is covered by your home loan, disbursed directly by the bank on completion.
For new developer launches the structure differs: a booking fee is paid, followed by SPA execution within 14 days of the SPA being ready. Developer payment schedules are governed by Housing Development (Control and Licensing) Act 1966 (Act 118), Schedule G (terraced/detached) or Schedule H (strata). Stage payments are released in proportion to construction progress.
MOT stamp duty (also called duti setem MOT) is levied on the instrument of transfer under the Stamp Act 1949 (Act 378). It is calculated on the higher of the purchase price or market value as determined by the stamping authority (LHDN). The tiered rates for Malaysian citizens and permanent residents are:
| Purchase price band | Rate | Cumulative stamp duty |
|---|---|---|
| First RM100,000 | 1% | RM1,000 |
| RM100,001 – RM500,000 | 2% | RM1,000 + RM8,000 = RM9,000 (at RM500k) |
| RM500,001 – RM1,000,000 | 3% | RM9,000 + up to RM15,000 (at RM1M) |
| Above RM1,000,000 | 4% | RM24,000 + 4% on excess |
Non-citizens and foreign companies pay a flat 8% on the full purchase price effective from 1 January 2026 (amended Stamp Act).
MOT stamp duty must be paid within 30 days of the instrument of transfer being executed. Under the Stamp Duty Self-Assessment System (SDSAS) introduced in 2026, your solicitor self-assesses and submits; LHDN may audit within 7 years.
Separately, your home loan agreement is stamped at a flat rate of 0.5% of the loan amount under the Stamp Act 1949. This is paid by the bank's solicitor and billed back to you.
| Loan amount (90% margin) | Stamp duty @ 0.5% |
|---|---|
| RM450,000 (on RM500k property) | RM2,250 |
| RM630,000 (on RM700k property) | RM3,150 |
| RM720,000 (on RM800k property) | RM3,600 |
| RM900,000 (on RM1M property) | RM4,500 |
The solicitor you appoint to act for you in the SPA transaction charges fees regulated by the Solicitors' Remuneration Order 2023 (SRO 2023) (which replaced SRO 2005). The scale for the SPA is:
| Purchase price band | Fee rate | Example fee (RM500k) |
|---|---|---|
| First RM500,000 | 1.25% (min RM500) | RM6,250 |
| RM500,001 – RM7,500,000 | 1.00% | — |
| Above RM7,500,000 | 0.50% | — |
All fees are subject to 8% Sales and Service Tax (SST). Solicitors may offer a discount of up to 25% on the regulated scale. Note: disbursements (search fees, registration fees) are charged separately — see below.
The bank's solicitor prepares and stamps the loan agreement (Letter of Offer, Deed of Assignment or Charge). Their fees are also regulated under SRO 2023 and charged to the borrower:
| Loan amount band | Fee rate | Example fee (RM450k loan) |
|---|---|---|
| First RM500,000 | 1.00% (min RM500) | RM4,500 |
| RM500,001 – RM7,500,000 | 0.80% | — |
Again, 8% SST applies and a 25% discount may be negotiated. Some banks absorb or subsidise loan legal fees as a promotional package — check your Letter of Offer carefully.
Before approving a home loan, your bank will require an independent property valuation by a registered valuer (under the Valuers, Appraisers and Estate Agents Act 1981 [Act 242], Seventh Schedule). Fees are tiered on the reported market value:
| Property value | Indicative fee | Notes |
|---|---|---|
| RM300,000 | RM750 – RM900 | Minimum RM400 applies |
| RM500,000 | RM1,000 – RM1,300 | + 8% SST |
| RM700,000 | RM1,300 – RM1,700 | + 8% SST |
| RM1,000,000 | RM1,800 – RM2,200 | + 8% SST |
Some banks panel-appoint the valuer on your behalf and add the fee to your loan disbursement. Others require you to arrange and pay upfront.
On top of legal fees, your solicitor will bill disbursements — out-of-pocket costs incurred on your behalf:
| Item | Indicative cost | Notes |
|---|---|---|
| Land Office search fees | RM50 – RM200 | Title search, land search |
| Bankruptcy & CTOS search | RM50 – RM150 | On vendor and purchaser |
| Stamp duty on SPA (RM10 fixed) | RM10 | Nominal |
| Land Office registration fees | RM200 – RM500 | For MOT and charge registration |
| Bank processing / admin fee | RM200 – RM500 | Bank-specific; sometimes waived |
| Agent commission | 2–3% of purchase price | Paid by seller in sub-sale; nil for buyer in most cases |
| Total disbursements (est.) | RM1,000 – RM3,000 | Excluding agent commission |
Agent commission in Malaysia is normally borne by the seller in a sub-sale transaction (regulated by BOVAEP at up to 3%). Buyers rarely pay agent commission directly, but confirm this before signing anything.
These are indicative planning figures. Your actual costs depend on your loan margin, solicitor, valuer and whether any promotional fee waivers apply.
| Cost item | RM500,000 property (90% loan) | RM700,000 property (90% loan) |
|---|---|---|
| 10% deposit | RM50,000 | RM70,000 |
| MOT stamp duty | RM9,000 | RM15,000 |
| Loan stamp duty (0.5% of loan) | RM2,250 | RM3,150 |
| SPA legal fees + 8% SST | RM6,750 | RM8,100 |
| Loan legal fees + 8% SST | RM4,860 | RM6,048 |
| Valuation fee + 8% SST | RM1,188 | RM1,620 |
| Disbursements (est.) | RM1,500 | RM1,800 |
| Total upfront cash | ~RM75,548 | ~RM105,718 |
| As % of purchase price | ~15.1% | ~15.1% |
Rule of thumb: budget 14–17% of the purchase price in total upfront cash for a sub-sale property purchase at 90% loan margin.
Under Budget 2026, the Malaysian government extended the following stamp duty exemptions for first-time Malaysian citizen homebuyers purchasing their first residential property:
| Exemption | Property price ceiling | Exemption amount |
|---|---|---|
| MOT stamp duty | Up to RM500,000 | 100% exemption |
| Loan agreement stamp duty | Loan for property up to RM500,000 | 100% exemption |
Exemptions are administered by LHDN. Your solicitor will apply for the exemption on your behalf when stamping the MOT and loan agreement documents. You must declare that you have not previously owned any residential property in Malaysia.
Additional programmes that can reduce upfront cash required include:
See our guide to first-time homebuyer schemes in Malaysia → and stamp duty exemptions for first homes →.
| Cost item | Non-first-buyer | First-time buyer (exemption) | Saving |
|---|---|---|---|
| 10% deposit | RM50,000 | RM50,000 | — |
| MOT stamp duty | RM9,000 | RM0 | RM9,000 |
| Loan stamp duty | RM2,250 | RM0 | RM2,250 |
| Legal fees & valuation | ~RM12,750 | ~RM12,750 | — |
| Disbursements | RM1,500 | RM1,500 | — |
| Total | ~RM75,500 | ~RM64,250 | RM11,250 |
The stamp duty exemption for a RM500,000 first home saves approximately RM11,250 in upfront costs.
Payments are not all due on the same day. Here is the typical cash-flow sequence for a sub-sale purchase:
For more on the full purchase process, see our guide on the Sale and Purchase Agreement in Malaysia → and Memorandum of Transfer (MOT) →.
Tell us what you need — we reply within the hour.