How much down payment do I need for a house in Malaysia?

Most banks finance up to 90% of the property value for your first two homes, so you typically need a 10% down payment plus the stamp duty and legal fees on top.

Is stamp duty really waived for first-home buyers?

Yes — for eligible Malaysian citizens buying their first home, properties priced at RM500,000 or below receive full stamp duty exemption on both the transfer (MOT) and the loan agreement, worth about RM11,250 on a RM500,000 home. Budget 2026 extended it to 31 December 2027. Above RM500,000 there is no relief: the 75% remission that once applied to the RM500,001–RM1,000,000 band lapsed at the end of 2023.

Does this include MRTA or fire insurance?

MRTA is included if you enter a premium — you can pay it upfront or finance it into the loan. Home and fire insurance are quoted separately by your insurer and are not included, so budget for those on top.

Malaysia housing loan calculator

Monthly repayment plus stamp duty, legal fees, and upfront cash.

Estimate the monthly repayment on a Malaysian home loan and, just as importantly, the cash you need upfront — down payment, stamp duty on the Memorandum of Transfer (MOT), stamp duty on the loan agreement, legal fees, valuation, and MRTA. The calculator uses the 2026 ad-valorem stamp duty tiers and the standard legal-fee scale, and lets you model a developer rebate and absorbed fees.

How the housing loan calculator works

You enter the margin of finance — the share of the price the bank lends, quoted as 90% or 80% the way banks and buyers talk about it. The loan amount follows from that, and the down payment is whatever is left. Dropping the margin from 90% to 80% shrinks the loan, the loan agreement stamp duty and the monthly instalment, and raises the cash you need on completion day.

The monthly installment is then computed with the standard amortization formula using that loan amount, the annual interest rate, and the tenure in months.

MOT stamp duty is charged on the property price in tiers: 1% on the first RM100,000, 2% from RM100,001–500,000, 3% from RM500,001–1,000,000, and 4% above RM1,000,000.

Loan agreement stamp duty is a flat 0.5% of the loan amount. Legal fees follow the Solicitors' Remuneration Order scale and are charged on both the Sale & Purchase Agreement and the loan agreement.

Malaysian citizens buying their first home at RM500,000 or below qualify for full stamp duty exemption on both the MOT and the loan agreement. Budget 2026 extended this to 31 December 2027. Permanent residents pay the normal tiers but do not qualify for the exemption, and from 1 January 2026 non-citizens and foreign companies pay a flat 8% on the transfer instead of the tiers.

On a new launch the developer often absorbs the legal fees and some or all of the MOT stamp duty, and quotes a rebate off the price. The MOT contribution is entered as the share the developer covers, because it is frequently partial rather than a clean waiver — a developer meeting half of a non-citizen's 8% duty leaves an effective 4%. Set those, and the net cash required falls accordingly; with a large enough rebate it reaches zero, which is what a "zero down payment" package really means. The rebate offsets your cash only: the bank still finances against the full price, and duty and legal fees are still assessed on it.

An MRTA or MLTA premium can be paid upfront or rolled into the loan. Financing it raises the amount borrowed and therefore the monthly instalment. Any extra monthly payment goes straight to principal, which is why even a small amount shortens a 35-year loan by years.

Monthly installment formula

M = P · r · (1 + r)^n / ((1 + r)^n − 1)

P = loan amount, r = monthly interest rate (annual rate ÷ 12 ÷ 100), n = number of months (years × 12).

MOT stamp duty tiers (2026)

Property price band	Rate
First RM100,000	1%
RM100,001 – RM500,000	2%
RM500,001 – RM1,000,000	3%
Above RM1,000,000	4%

Loan agreement stamp duty is a separate flat 0.5% of the loan amount. Non-citizens and foreign companies pay a flat 8% on the transfer instead of these tiers.

Worked examples

RM500,000 home, 10% down, 35 years at 4%

Loan amount: RM450,000
Down payment: RM50,000
Interest rate: 4% p.a.

Result: ≈ RM1,993/month, with roughly RM76,000 needed upfront (down payment + stamp duty + legal fees + valuation + disbursements) for a Malaysian citizen who is not a first-home buyer.

Frequently asked questions

How much down payment do I need for a house in Malaysia?: Most banks finance up to 90% of the property value for your first two homes, so you typically need a 10% down payment plus the stamp duty and legal fees on top.
Is stamp duty really waived for first-home buyers?: Yes — for eligible Malaysian citizens buying their first home, properties priced at RM500,000 or below receive full stamp duty exemption on both the transfer (MOT) and the loan agreement, worth about RM11,250 on a RM500,000 home. Budget 2026 extended it to 31 December 2027. Above RM500,000 there is no relief: the 75% remission that once applied to the RM500,001–RM1,000,000 band lapsed at the end of 2023.
Does this include MRTA or fire insurance?: MRTA is included if you enter a premium — you can pay it upfront or finance it into the loan. Home and fire insurance are quoted separately by your insurer and are not included, so budget for those on top.