First-time home buyer in Malaysia (2026–2027): Budget 2027, schemes and real prices
What Budget 2027 changes for first-time buyers, which first home schemes are still open, and what a first home really costs.
The short answer
As a first-time home buyer in Malaysia, the biggest help is paying no stamp duty on a home up to RM500,000. Budget 2027 proposes to stretch that to RM750,000 from 1 January 2027. Loan guarantees, EPF savings and affordable-housing schemes cover the rest.
First home buyers at a glance (checked 14 October 2026)
- ✓ Up to RM500,000: no stamp duty on the transfer and the loan, for SPAs signed by 31 December 2027
- ✓ Budget 2027 proposal: partial exemption up to RM750,000, for SPAs from 1 January 2027 to 31 December 2030
- ✓ Subsale cover for the new rules is not yet confirmed; the current RM500,000 exemption does cover subsales
- ✓ 69% of recorded home sales went for RM500,000 or less, and 85% for RM750,000 or less
What's new in Budget 2027 for first-time buyers
Budget 2027 was tabled on 9 October 2026. Two measures matter to a first-time buyer:
- Stamp duty relief up to RM750,000 on the transfer (MOT) and the loan agreement, for SPAs signed from 1 January 2027 to 31 December 2030.
- RM20 billion more for SJKP, the government loan guarantee scheme, aimed at about 80,000 first-time buyers, especially the self-employed (Bernama, 9 October 2026).
| Now (in force) | Budget 2027 proposal | |
|---|---|---|
| Up to RM500,000 | No stamp duty | No stamp duty |
| RM500,001 to RM750,000 | Full duty | First RM500,000 free, half duty on the rest |
| Subsale homes | Covered | Not yet confirmed |
Sources: The Star, 9 October 2026; current orders P.U.(A) 448 and 449/2025 via EdgeProp. Checked 14 October 2026.
Does it cover subsale homes?
Not confirmed yet. The House Buyers Association asked the government on 9 October 2026 to make sure subsale buyers get the same relief as buyers of new homes. As of 14 October 2026 we found no official answer.
What this means for you:
- Up to RM500,000: the current exemption covers you to 31 December 2027, new or subsale. No need to wait.
- RM500,001 to RM750,000, from a developer: signing on or after 1 January 2027 could save you RM9,000 to RM12,750 in transfer stamp duty (see the example below).
- RM500,001 to RM750,000, subsale: don't count on the saving until this is answered. Ask your lawyer, and see our subsale guide for the rest of the process.
The proposal becomes law only once the exemption order is gazetted.
First home schemes you can still use in 2026
| Scheme | What it gives you | Who it's for |
|---|---|---|
| Stamp duty exemption | No MOT or loan stamp duty | First homes up to RM500,000 |
| Tax relief on loan interest | Up to RM7,000 a year for 3 years | First homes up to RM750,000 |
| SJKP | Loan guarantee, above 100% | Mainly buyers without payslips |
| LPPSA | Up to 100%, now up to RM1 million | Civil servants |
| EPF Akaun Sejahtera | Use savings for the purchase or loan | EPF members under 55 |
| PR1MA | Homes for middle-income households | Household income RM2,500 to RM15,000 |
| Residensi Wilayah | Homes up to RM300,000 | First-time buyers tied to KL, Putrajaya, Labuan |
| State schemes | Price-controlled homes | Residents meeting each state's rules |
Stamp duty exemption. Your lawyer claims it at stamping, usually with a statutory declaration that this is your first home. On a RM500,000 home with a 90% loan it saves about RM11,250. Rates are in stamp duty and MOT in Malaysia.
Tax relief on housing loan interest. From Budget 2025, for SPAs signed in 2025 to 2027: up to RM7,000 a year for homes up to RM500,000, or RM5,000 up to RM750,000, for three years. Confirm the conditions with LHDN.
SJKP (Skim Jaminan Kredit Perumahan). The government guarantees your loan, so a bank will lend when you cannot show payslips: gig workers, small traders, the self-employed. Apply through a participating bank such as Maybank, RHB, Bank Islam or BSN. New, subsale and auction homes qualify.
SJKP and SJKP MADANI in detail
| SJKP | SJKP MADANI | |
|---|---|---|
| Financing limit | Up to RM500,000 | Up to RM360,000 |
| What it can cover | Loan, MRTA/MRTT, insurance, legal and valuation fees | Up to 100% of the price, plus up to 20% for insurance, fees, renovation and furniture |
| Who | Malaysian citizens aged 18 and above, buying a first home to live in. Salaried buyers are limited to low-cost, medium-cost or affordable homes | |
| Credit | All loan repayments no more than 65% of gross income; no CCRIS arrears over 2 months in the last 12 months | |
From sjkp.com.my, checked 14 October 2026. Banks set their own income and age limits on top.
LPPSA (civil servants). Up to 100% financing, with the maximum raised to RM1 million from 4 October 2026 (EdgeProp, 2 October 2026). What you get depends on your salary.
EPF. Since May 2024, housing withdrawals come from Akaun Sejahtera (the old Account 2). You can use it towards the purchase, or to reduce or settle your housing loan. Check the current rules and your balance in the KWSP i-Akaun app.
PR1MA. For citizens aged 21 and above with household income of RM2,500 to RM15,000 a month, buying a first or second home to live in; new launches are balloted. Its next large project, Bandar MADANI Bukit Jalil, opened first-phase registration on 12 October 2026.
Residensi Wilayah and state schemes. Residensi Wilayah (formerly RUMAWIP) sells homes up to RM300,000 in the Federal Territories, with a 10-year resale moratorium. Most states run their own: Rumah Selangorku homes are priced from RM114,750 to RM250,000 (LPHS). Rules differ by state, so check with your state housing board. A private condo merely named "Residensi" is not scheme housing.
Schemes you may read about that are closed or unclear
- Youth Housing Scheme (BSN): time-limited; StarProperty reported it ran until 31 December 2020.
- i-Miliki / HOPE, MyHome, MyDeposit: earlier campaigns and subsidies, not open in 2026 as far as we could find.
- Skim Rumah Pertamaku (SRP): Cagamas 100% financing. We could not confirm it still takes applications; ask your bank.
What a first home really costs
We looked at every residential subsale recorded by JPPH from July 2025 to June 2026: 34,615 sales. Here is how much of each market sits under each threshold.
| State | Sales | Median price | ≤ RM300k | ≤ RM500k | ≤ RM750k |
|---|---|---|---|---|---|
| Malaysia | 34,615 | RM392,000 | 32% | 69% | 85% |
| Selangor | 7,406 | RM498,000 | 18% | 53% | 75% |
| Johor | 4,976 | RM480,000 | 21% | 58% | 84% |
| Kuala Lumpur | 3,364 | RM780,000 | 13% | 32% | 49% |
| Perak | 3,291 | RM300,000 | 51% | 89% | 97% |
| Penang | 2,911 | RM360,000 | 37% | 72% | 85% |
| Kedah | 2,254 | RM300,000 | 55% | 91% | 98% |
| Negeri Sembilan | 1,981 | RM310,000 | 49% | 82% | 95% |
| Pahang | 1,677 | RM300,000 | 53% | 90% | 98% |
Residential subsales recorded July 2025 to June 2026, excluding shops, offices, factories, industrial units, retail and SOHO. Medians, not averages.
What the numbers say:
- The current RM500,000 limit covers most of Malaysia, but only about half of Selangor and a third of Kuala Lumpur.
- The proposed RM750,000 band adds about 15% of the market nationally, and more in Selangor (22%) and Johor (26%). That is where Budget 2027 helps most, if subsales qualify.
- In Kuala Lumpur, half of all homes sold above RM750,000.
What a first home costs by type: Klang Valley, Johor, Penang
| Median price | Klang Valley | Johor | Penang |
|---|---|---|---|
| Flat | RM210,000 | RM190,000 | RM300,000 |
| Single-storey terrace | RM437,000 | RM420,000 | RM380,000 |
| Condominium or apartment | RM450,000 | RM400,000 | RM486,000 |
| Serviced apartment | RM680,000 | RM495,000 | RM510,000 |
| Double-storey terrace | RM700,000 | RM600,000 | RM580,000 |
Recorded subsales July 2025 to June 2026. Klang Valley = Selangor and Kuala Lumpur. Penang serviced apartments rest on only 35 sales. A state median is a starting point; compare against your own area.
Records lag a few months. For a specific home, compare the asking price with recorded sales of the same type nearby, as shown in how to check market value.
Free transaction search
See what first homes near you sold for
Check recorded subsale prices by area, property type and size, so you know what your budget buys before you view anything.
How much cash you need: a worked example
A RM400,000 first home, close to the national median, with a 90% loan (RM360,000), bought by a Malaysian citizen:
| Cost | First-time buyer | Not eligible |
|---|---|---|
| Down payment (10%) | RM40,000 | RM40,000 |
| MOT stamp duty | Waived | RM7,000 |
| Loan agreement stamp duty (0.5%) | Waived | RM1,800 |
| SPA legal fees | RM5,000 | RM5,000 |
| Loan legal fees | RM4,500 | RM4,500 |
| Cash needed | About RM49,500 | About RM58,300 |
Add disbursements for searches, registration and stamping, which vary by firm. Legal fees follow the Solicitors' Remuneration Order 2023. The full breakdown, including ongoing costs, is in the real cost of buying a house.
Above RM500,000, Budget 2027 changes the sum. On a RM650,000 first home, transfer stamp duty is normally RM13,500. Under the proposal, with an SPA signed in 2027, it would be RM2,250: nothing on the first RM500,000, and half of the RM4,500 due on the rest. How the loan agreement duty is split will be set out in the gazetted order.
These are estimates. Confirm the figures with your bank and lawyer before you sign.
Who counts as a first-time buyer
For the stamp duty exemption, you must be a Malaysian citizen who has never owned a residential property, alone or jointly. That includes property you inherited or received as a gift.
Points that catch people out:
- Joint purchases: every named buyer must be a first-timer. If your spouse already owns a home, buying together can cost you the exemption.
- Market value counts: the limit is checked against the home's market value, not only the price. A home valued above RM500,000 may not qualify.
- Serviced apartments and SOHOs: the Stamp Act now counts them as residential, but LHDN's declaration form has reportedly asked buyers to confirm the home is not one, a conflict the Malaysian Bar raised in April 2026. If you are buying one, ask your lawyer first.
General information only, not legal, financial or tax advice. Schemes change with every Budget, and the Budget 2027 measures are proposals until gazetted. Scheme details checked 14 October 2026; prices from JPPH subsale records, July 2025 to June 2026. Confirm your eligibility with your bank, lawyer, LHDN or the scheme operator before you sign.
Common questions
What help is there for first-time home buyers in Malaysia in 2026?
No stamp duty on the transfer (MOT) or loan agreement for a first home up to RM500,000, for SPAs signed by 31 December 2027. Add SJKP loan guarantees, LPPSA financing for civil servants, EPF Akaun Sejahtera withdrawals, tax relief on loan interest, and affordable homes through PR1MA, Residensi Wilayah and state schemes. Check each scheme's official site before you apply.
What does Budget 2027 give first-time home buyers?
Budget 2027, tabled on 9 October 2026, proposes no stamp duty on first homes up to RM500,000 and, up to RM750,000, no duty on the first RM500,000 and half on the rest, for SPAs signed from 1 January 2027 to 31 December 2030. It also adds RM20 billion to the SJKP loan guarantee fund. The stamp duty change is a proposal until it is gazetted.
Does the Budget 2027 stamp duty exemption cover subsale homes?
Not yet confirmed. The National House Buyers Association asked the government on 9 October 2026 to confirm it, and as of 14 October 2026 we found no official answer. The current exemption for homes up to RM500,000, which runs to 31 December 2027, already covers subsales. Ask your lawyer which rules apply on your SPA date.
Should I wait until 2027 to sign my SPA?
Not for a home up to RM500,000: the current exemption covers you until 31 December 2027. Between RM500,001 and RM750,000, signing on or after 1 January 2027 could save RM9,000 to RM12,750 in transfer stamp duty once the new rules are gazetted. For a subsale in that band, wait until subsale cover is confirmed.
Who counts as a first-time home buyer in Malaysia?
For the stamp duty exemption, a Malaysian citizen who has never owned a residential property, alone or jointly, including one inherited or received as a gift. In a joint purchase, every buyer must qualify. Other schemes set their own tests.
Can I buy my first house with no down payment in Malaysia?
Sometimes. SJKP can guarantee financing above 100% for first-time buyers, mainly those without payslips, and LPPSA lends civil servants up to 100%. Most buyers still need a 10% down payment plus legal fees.
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