Housing took a compact but meaningful share of the Budget 2027 speech, tabled on 9 October 2026. For first-time buyers, two announcements stand out: wider stamp duty relief and RM20 billion in housing financing guarantees. Together, they aim to lower the cost of getting started and to open the door for buyers who have long found it hard to qualify for a home loan.
Here is what the Budget proposes, who stands to gain the most, and what home seekers should keep in mind while the details are finalised.
What Budget 2027 Proposes for First-Time Buyers
The Government proposes a full stamp duty exemption on loan agreements and instruments of transfer for first homes priced up to RM500,000. For homes priced up to RM750,000, the first RM500,000 will be fully exempt, with a 50% exemption on the balance. Both apply to sale and purchase agreements (SPAs) executed from 1 January 2027 to 31 December 2030, according to the Budget 2027 Speech and the Budget 2027 Tax Measures. This is part of the SJKP Inclusive Home Financing limit, and buyers who already own a home are outside the proposed relief.
It helps to be clear on what is new. Relief for first homes up to RM500,000 already exists and currently covers SPAs executed up to 31 December 2027. Budget 2027 extends it to 2030 and adds the RM500,001 to RM750,000 tier. The exemption is for Malaysian citizens buying their first residential home.
A Worked Example: A RM700,000 First Home
Stamp duty on a property transfer is charged in tiers: 1% on the first RM100,000, 2% on the next RM400,000, 3% on the portion between RM500,001 and RM1 million, and 4% above that, based on the higher of the purchase price or market value. This scale was set out in a Ministry of Finance statement (in Bahasa Malaysia), and the Budget 2027 measures do not change it.
First RM100,000 (1%)
RM1,000
Fully exempt
Next RM400,000 (2%)
RM8,000
Fully exempt
Last RM200,000 (3%)
RM6,000
RM3,000 (50% exempt)
Total
RM15,000
RM3,000
On this illustration, a buyer of a RM700,000 first home would pay around RM3,000 in stamp duty on the transfer instead of RM15,000, a saving of RM12,000. Please treat it as indicative. It covers the instrument of transfer only, since the loan agreement is covered by the exemption separately, and the exact mechanics will be set out in the exemption order once it is gazetted.
Easier Access to Financing Through SJKP
The Budget also provides housing financing guarantees of up to RM20 billion through the Housing Credit Guarantee Scheme (SJKP), expected to help 80,000 first-time buyers, particularly the self-employed who have no fixed income.
According to the Budget Touchpoints, the guarantee is split into two RM10 billion pools:
- SJKP MADANI supports the purchase of affordable homes priced below RM300,000 by B40 and M40 buyers, including gig workers, freelancers, the self-employed, micro-entrepreneurs, those with irregular income, youth and public service contract staff. The guarantee is up to 120%, financing goes up to RM360,000 and the guarantee fee is 0.25%.
- Inclusive Home Financing covers broader first-home purchases beyond affordable homes. The guarantee is up to 110%, financing goes up to RM500,000, and the guarantee fee is 0.25% for financing up to RM300,000 and 0.50% above that.
Support goes beyond the two main pools. The Budget also provides RM5 billion in dedicated financing for Sabah and Sarawak, RM50 million for agricultural communities through Agrobank, RM100 million for gig workers under the BSN SJKP MADANI Gig Housing Financing Scheme, and a RM1 billion guarantee for Rent-to-Own financing. The last fits the direction of the 13th Malaysia Plan, which says the rent-to-own scheme will be expanded and existing affordable home financing schemes improved.
Who Benefits Most, and Who May Be Left Out
The two measures work together, but their reach differs by price band.
Up to RM300,000
Full exemption
SJKP MADANI: guarantee up to 120%, financing up to RM360,000
RM300,001 to RM500,000
Full exemption
Inclusive Home Financing: guarantee up to 110%, financing up to RM500,000
RM500,001 to RM750,000
Full on the first RM500,000, 50% on the balance
Inclusive Home Financing, with financing capped at RM500,000
Above RM750,000
None under these measures
Check scheme terms; financing is limited to RM500,000
Two groups deserve a closer look. Buyers of homes above RM750,000 do not receive first-home stamp duty relief under these measures, and non-citizens are outside the exemption.
Eligibility details also matter. Under the current exemption order, LHDN’s statutory declaration requires that the buyer owns no residential property when the SPA is signed, including property received through inheritance or gift, and it excludes SOHO, SOFO, SOVO and service apartments. Buyers should check whether the same conditions carry over to the new order.
What the Measures Do Not Resolve
Lower upfront costs and wider access to financing address one part of the picture. The other is the gap between what homes cost and what households earn. The 13th Malaysia Plan acknowledges this, naming the rising cost of living, sluggish wage growth and rising house prices among the challenges it has to address (see the 13MP Executive Summary and Pamphlet).
Budget 2027 does move on incomes. The minimum wage rises from RM1,700 to RM2,000 from June 2027, with MSMEs below RM50 million in annual sales exempted. Separately, the Budget introduces a RM2,500 starting wage for semi-skilled workers and graduates, although the Speech does not state when it takes effect. The individual tax relief threshold rises from RM9,000 to RM12,000. The Speech, meanwhile, does not announce a Home Ownership Campaign.
Whether these changes together make homes more attainable will depend on how quickly incomes and prices move, which will be worth watching through 2027.
Practical Takeaways for First-Time Buyers
- Check your eligibility early. The exemption is for Malaysian citizens buying a first residential home, so confirm how your purchase fits, including the property type.
- Know your timeline. The proposed relief covers SPAs executed from 1 January 2027 to 31 December 2030. For homes up to RM500,000, existing relief already covers SPAs executed up to 31 December 2027. The RM500,001 to RM750,000 tier starts on 1 January 2027.
- Match the scheme to your price band. SJKP MADANI is aimed at homes below RM300,000, while Inclusive Home Financing covers broader first-home purchases with financing up to RM500,000.
- Ask about guarantee-backed financing. If you are self-employed or have irregular income, ask your bank whether SJKP-backed financing is available for your purchase.
- Watch for the gazetted orders. The measures are described as proposals, so the final terms will follow once the exemption orders are published.
Budget 2027 will not settle every affordability question, but it lowers the cost of entry and widens the path to a first home. At PropertyGuru, we will keep following how these measures take shape. In the meantime, tools such as our Home Loan Eligibility Calculator can help you gauge what you may be able to borrow before you start house hunting.
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