What a purchase costs beyond the price
The down payment is the number buyers plan for. The duties and fees around it are the ones that catch people short at signing.
Stamp duty on the transfer
This is charged on the purchase price in marginal bands: 1% on the first RM100,000, 2% from RM100,001 to RM500,000, 3% from RM500,001 to RM1,000,000, and 4% above RM1,000,000.
Marginal means each rate applies only to the slice of the price inside its band. On a RM600,000 purchase the duty is RM12,000, not 3% of the whole price.
Stamp duty on the loan
The loan agreement is stamped separately at 0.5% of the loan amount. On a RM540,000 loan that is RM2,700, and it is due at the same time as the rest.
Legal fees
Conveyancing fees follow a published scale that steps down as the price rises, starting around 1.25% on the first slice. There are two sets in a financed purchase: one for the sale and purchase agreement, one for the loan documentation.
Disbursements sit on top: land search, title registration, stamping and the lawyer's out of pocket costs. These are small individually and add up to a four-figure sum.
Where developers absorb some of it
New launches frequently carry a package where the developer covers the legal fees on the sale and purchase agreement, and sometimes the transfer duty. What is covered varies by project and by phase, and it is worth getting the specific list in writing rather than assuming the standard one applies.
A worked example
| Item | On a RM600,000 purchase at 90% financing |
|---|---|
| Down payment | RM60,000 |
| Stamp duty on transfer | RM12,000 |
| Stamp duty on loan agreement | RM2,700 |
| Legal fees and disbursements | Roughly RM10,000 to RM14,000 for both agreements |
| Valuation and processing | Varies by bank |
Frequently asked
How much is stamp duty on a RM600,000 property in Malaysia?
RM12,000 on the transfer: 1% of the first RM100,000, 2% of the next RM400,000, and 3% of the last RM100,000. A 90% loan adds RM2,700 of duty on the loan agreement.
Are legal fees negotiable?
Conveyancing fees follow a published scale, so the room is limited. Developers often absorb the fees on the sale and purchase agreement for a new launch, which is where the real saving comes from.
Do first-time buyers pay stamp duty?
Exemptions for first-time buyers are announced in the national budget and the qualifying price ceiling changes from year to year. Check the current position before budgeting.
When do I need the cash?
At signing and shortly after. Duties and legal fees are not financed by the home loan, so they have to be available in cash alongside the down payment.
