SPA, Stamp Duty, And Legal Fees For Malaysian Property

Yep, there are additional costs when it comes to buying a property, not just the downpayment! You'd also need to pay for the legal fees for the Sale and Purchase Agreement (SPA) and loan agreement; the real estate agent’s commission; the stamp duty fees.
Sale and Purchase Agreement fees 2020

Wanting to buy your first property is always an exciting, and slightly nerve-racking, experience! Here are some reasons why:

  • You’ve done your research to find the perfect area surrounded by plenty of amenities (and the neighbours aren’t weird in any way).
  • You’ve prepared a solid budget that maps out your repayments, savings, and miscellaneous expenses.
  • You’ve also selected the right bank that will provide you with a 90% margin of finance with an attractive interest rate.

“Now, what could possibly go wrong,” you think. Well, A LOT, as it seems!

Before you can even take the last step to seal that sweet deal, you discover some additional ‘hidden fees’ you overlooked. Yep, apart from the property's downpayment, there’s also the following:

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Suddenly, that carefully planned budget of yours is in chaos as you realise that you don’t have enough money to purchase your dream home after all. Boooo!

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How Am I Supposed To Know What The Rates Are?

Well, if you wanna make sure the scenario above doesn’t apply to you, you’d better check out the following list of rates we’ve compiled for your reference.

They’ll show you what to expect when it comes to the additional payments you need to make. Hopefully, you won’t be caught off-guard and have to scramble to raise enough funds on time. You’re welcome!

Infographic on the sale and purchase agreement, stamp duty and legal fees for purchasing a property in Malaysia 2020

If the list above doesn’t scare you off, then good for you, you’re ready for what is probably the biggest financial step you’ll ever make!

 

But Wait, Did You Know That There's A Stamp Duty Exemption For First-Time Homebuyers?

During the tabling of Malaysia's Budget 2019, it was announced that first-time homebuyers would be able to enjoy a stamp duty exemption on the first RM300,000 of the property price on the instrument of transfer and the loan agreement, executed between 1 January 2019 and 31 December 2020. 

That's a maximum of RM6,500 in savings! The calculation as follows:

  • RM5,000 exemption on the instrument of transfer [(1% x First RM100,000) + (2% x Final RM200,000) = (RM1,000 + RM4,000)]
  • RM1,500 exemption on the loan agreement (0.5% x RM300,000)

So that's a full exemption on stamp duties for properties priced RM300,000 and below! As for properties priced between RM300,001 and RM500,000, you'd be able to enjoy the stamp duty exemption on the first RM300,000 as well!

What Is Stamp Duty, And Its Exemptions In Malaysia?

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What Is Stamp Duty, And Its Exemptions In Malaysia?

You can also make use of the PropertyGuru Loan Pre-Approval solution to determine whether you’ll be successfully approved for the amount you want or not.

Psst, it's free of charge, plus you’ll also be automatically matched with homes you desire and can afford on our website!

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