boongiap.com.my
Malaysia’s Budget 2026 is a game‑changer for first‑time homebuyers: full stamp duty exemption on MOT (Memorandum of Transfer) and loan agreement for properties up to RM500,000 has been extended for another two years until 31 December 2027. This dramatically reduces entry cost for eligible buyers and strengthens demand in the mass‑market and affordable segments nationwide.
What exactly is the new incentive?
Budget 2026 extends the full stamp duty exemption on:
- The instrument of transfer (MOT); and
- The loan agreement,
for first‑time homebuyers purchasing residential properties priced up to RM500,000, until 31 December 2027. In simple terms, if you qualify and your first home price is RM500,000 or below, you pay RM0 stamp duty on both MOT and the housing loan agreement during this period.
Previously, the exemption was introduced as a time‑limited measure; Budget 2026 now confirms a further two‑year extension to support homeownership and ease cost of living pressures. This applies to projects by developers and sub‑sale (secondary market) transactions, subject to detailed conditions in the official guidelines.
Normal stamp duty vs first‑time buyer benefit
Without any exemption, a Malaysian buying a RM500,000 home would pay MOT stamp duty using the tiered scale (1%, 2%, 3%) plus 0.5% stamp duty on the loan amount. With the first‑time home buyer exemption, both these duties are fully waived for eligible purchases up to RM500,000.
At a glance
This can translate into savings of tens of thousands of ringgit, which can instead be used for renovation, furnishing or emergency savings after you get the keys.
Who qualifies as a first‑time home buyer?
Detailed conditions will follow from LHDN and related agencies, but based on existing practice and guidance:
- The buyer must be a Malaysian citizen who has never owned a residential property in Malaysia before (name not on any previous title or strata title).
- The property must be residential (e.g. apartment, condominium, serviced residence approved as residential, or landed house) and priced at RM500,000 or below.
- The Sale & Purchase Agreement (SPA) / transfer instrument must fall within the approved dates and meet the cut‑off of 31 December 2027.
Where there are joint purchasers, all co‑buyers generally must be first‑time residential property owners to enjoy full exemption, otherwise only partial or no exemption may apply, depending on how the final rules are drafted. Because definitions and proof requirements can be technical, buyers should have their lawyer confirm eligibility before relying on the exemption to plan cash flow.
Impact on different buyer profiles
For younger buyers, the extended exemption makes it more realistic to purchase a starter home in the RM400,000–RM500,000 bracket without being overwhelmed by upfront taxes. For couples upgrading from renting, the saved stamp duty can cover a good portion of renovation (kitchen cabinets, wardrobes, lights, fans) and basic furnishing.
For the wider market, this policy supports demand in the mass residential segment and encourages developers to price or package units to fit within the RM500,000 threshold to capture first‑time buyer demand. Banks and mortgage advisors are also likely to use this exemption in their campaigns, offering packages targeted specifically at first‑time buyers.
Key reminders before you buy
- Check your ownership history carefully – if your name has appeared on a title before, you may not qualify as first‑time buyer.
- Ensure the property type and price meet the RM500,000 cap and residential classification to avoid losing the exemption at stamping stage.
- Ask your solicitor to confirm eligibility in writing and compute the “with vs without exemption” cost so you know your real savings.
- Aim to have the SPA / MOT executed well before 31 December 2027 to avoid last‑minute issues if any deadlines or rules change.
This framework applies across Malaysia and is relevant whether you are looking at apartments in KL, landed homes in Klang Valley, or affordable housing schemes in other states.