Buying your first home is about to get cheaper for many Malaysians. Budget 2027 extends the first home stamp duty exemption until 2030 and adds partial relief for homes up to RM750,000. Here is what the change means, as of November 2026, and how to make sure you benefit.
What Is the First Home Stamp Duty Exemption?
Stamp duty is a tax charged on two key documents when you buy property: the instrument of transfer (the memorandum of transfer, or MOT) and the loan agreement. Together, they can add thousands of ringgit to the upfront cost of a home. The first home stamp duty exemption removes some or all of this charge for Malaysians buying their first home.
6 Essential Things Buyers Should Know
1. Full Exemption for Homes Up to RM500,000
Under Budget 2027, the first home stamp duty exemption gives first-time buyers full relief on both the transfer instrument and the loan agreement for homes priced up to RM500,000, theSun reported.
2. New Partial Relief Up to RM750,000
The bigger change is for homes between RM500,001 and RM750,000. Buyers get a full exemption on the first RM500,000 and a 50% exemption on the remaining amount. Homes above RM750,000 do not qualify.
3. It Covers SPAs Signed From 2027 to 2030
The new rule applies to sale and purchase agreements (SPAs) completed from 1 January 2027 to 31 December 2030. iMoney points out that the SPA date decides which rule applies, not the date you paid a booking fee or received a bank offer letter. SPAs signed before 2027 fall under the existing exemption, which only covers homes up to RM500,000.
4. How Much You Could Save
The savings grow with the price. Take a RM700,000 home. On the standard scale (1% on the first RM100,000, 2% on the next RM400,000 and 3% on the next RM500,000), stamp duty on the transfer is RM15,000. Under the new rule, the first RM500,000 is exempt and half of the duty on the remaining RM200,000 is waived, leaving about RM3,000. That is a saving of roughly RM12,000 on the transfer alone, before any relief on the loan agreement.
5. Who Counts as a First-Time Buyer
Under the current exemption order, the buyer must be a Malaysian citizen who has never owned residential property, whether alone, jointly, by inheritance or as a gift, according to iMoney. For joint purchases, only the first-time buyer’s share is exempt. Check the final terms once the new order is published.
6. It Is Not Automatic
Your lawyer usually claims the first home stamp duty exemption by submitting a statutory declaration to the Inland Revenue Board (LHDN) with the stamping application. Tell your lawyer early that you are a first-time buyer and keep the paperwork ready. Note that, as of early November 2026, the Budget 2027 exemption order had not yet been reported as gazetted.
Other Help for First-Time Buyers in Budget 2027
The budget also includes nearly RM1 billion for affordable housing programmes such as Rumah Mesra Rakyat and Program Residensi Rakyat. Syarikat Jaminan Kredit Perumahan (SJKP) will provide up to RM20 billion in housing financing guarantees, expected to help around 80,000 first-time buyers, particularly self-employed people without fixed incomes.
There is relief for buyers stuck in abandoned projects too. A full stamp duty exemption will apply to loan agreements and transfer instruments involving rescue contractors or developers and original buyers, from 2027 to 2030.
First Home Stamp Duty Exemption: Quick Checklist
- Confirm you have never owned residential property in Malaysia.
- Check the price against the RM500,000 and RM750,000 limits.
- Note your SPA date, as it decides which rule applies.
- Ask your lawyer to claim the exemption and confirm the latest gazetted terms.
- Budget for legal fees and other costs, which the exemption does not cover.
This guide is for general information only and is not financial or legal advice. Please consult your lawyer or banker before making a decision.
For more homebuying guides, browse our Property & Real Estate section. For official stamp duty guidance, visit the Inland Revenue Board of Malaysia (LHDN) official website.
