Earlier exemption versus the 2027 proposal
The Ministry of Finance’s Budget 2027 Tax Measures, Appendix 16, specifies Malaysian citizens buying a first residential home. It records the existing full exemption up to RM500,000 for qualifying SPAs through 31 December 2027, then proposes a 2027–2030 window and partial relief above RM500,000 up to RM750,000. The appendix is a proposal, not the final exemption order.
Both the speech and Appendix 16 name loan agreements and instruments of transfer, but neither explains how relief is calculated when the loan amount differs from the home price. The table below therefore calculates transfer duty only. HASiL’s housing-loan-interest income-tax relief is a separate measure; do not count it as a stamp-duty exemption.
References: Budget 2027 Tax Measures, Appendix 16 / Budget 2027 speech, paragraph 56 / HASiL income-tax relief page
Illustrative transfer duty from RM500k to RM750k
These are conditional illustrations for a qualifying Malaysian first-home buyer if the proposal is implemented as stated. They assume the chargeable transfer value equals the purchase price, no other relief applies and the ordinary citizen transfer bands remain 1% on the first RM100,000, 2% on the next RM400,000 and 3% from RM500,001 to RM1 million. Actual duty can be assessed on the higher of consideration or market value.
Method: normal transfer duty is calculated progressively. Proposed transfer duty is zero through RM500,000, then 50% of the ordinary 3% duty on the amount above RM500,000. Saving is normal duty minus the illustrative proposed duty. No loan-agreement duty, legal fee, disbursement or other purchase cost is included.
| Home price | Normal transfer duty | Illustrative duty after proposal |
|---|---|---|
| RM500,000 | RM9,000 | RM0; potential transfer saving RM9,000 |
| RM550,000 | RM10,500 | RM750; potential transfer saving RM9,750 |
| RM600,000 | RM12,000 | RM1,500; potential transfer saving RM10,500 |
| RM650,000 | RM13,500 | RM2,250; potential transfer saving RM11,250 |
| RM700,000 | RM15,000 | RM3,000; potential transfer saving RM12,000 |
| RM750,000 | RM16,500 | RM3,750; potential transfer saving RM12,750 |
Example: RM600,000 transfer duty is RM1,000 on the first RM100,000 + RM8,000 on the next RM400,000 + RM3,000 on the last RM100,000 = RM12,000 normally. Half of the RM3,000 final-band duty remains payable under the stated proposal: RM1,500. This is illustrative, not an entitlement decision.
References: Ministry of Finance published transfer-duty rate bands / Budget 2027 speech
Loan-agreement duty needs a separate calculation
Ordinary secured-loan stamp duty is generally RM5 for each RM1,000 or part thereof of the chargeable loan amount, often described as 0.5%. A home price is not the loan amount: a RM600,000 home with a 90% loan has a RM540,000 loan before any financed costs. Budget 2027 proposes relief on loan agreements, but neither the speech nor Appendix 16 defines how the RM500,000 threshold and partial balance work on this different base.
For a home at or below RM500,000, the speech proposes full relief on the eligible loan agreement as well as transfer. Above that price, do not add a precise loan-duty saving to the table until the final order or written legal calculation resolves the apportionment. A calculator that presents one exact combined saving now would hide that uncertainty.
References: HASiL published loan-duty rate reference / Budget 2027 Tax Measures, Appendix 16
Four details to confirm with your lawyer
Your buyer status
Ask the conveyancing lawyer to check the final first-home definition, citizenship and ownership declarations.
The SPA execution date
The speech refers to SPAs executed from 1 January 2027 through 31 December 2030; a booking receipt is not the SPA.
Chargeable value and instruments
Confirm price, valuation basis, MOT or transfer document, loan agreement and whether any other relief changes the result.
The final legal text
The Budget statement is a proposal. Check the gazetted exemption order, forms and any caps or exclusions before treating the illustration as cash saved.
