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Buying Costs

How much should you prepare to purchase a property?

Agreed Purchase Price

  • Earnest deposit: 3% of purchase price
    - payable upon signing Agreement to Purchase / Letter of Offer

  • Dowpayment (balance): 7% of purchase price (to make up 10% total Downpayment)
    - payable upon signing Sale & Purchase Agreement (SPA)

  • Differential sum (if any): Purchase price minus deposits paid+loan amount
    - payable in order to redeem the property

For Sale & Purchase Agreement

  • Legal Fees (revised according to latest SRO 2023):
    - For the first RM500,000, the legal fees payable is 1.25%

    - For the next RM7,000,000 : 1%

    - For the next RM7,500,000 : Subject to negotiation on the excess but shall not exceed 1 % of such excess

  • Stamp Duty Fees for Instrument of Transfer (MOT):
    - For first RM100,000 : 1%

    - For RM100,001 - RM500,000 : 2%

    - For RM500,001 - RM1,000,000 : 3%

    - For RM1,000,001 & above : 4%

  • Stamping fees for SPA: Less than RM100 (approx.)

  • Disbursement fees: A few hundred ringgit

For Loan Agreement

  • Legal Fees for Loan Agreement 2021:
    - For the first RM500,000, the legal fees payable is 1.25%

    - For the next RM7,000,000 : 1%

    - For the next RM7,500,000 : Subject to negotiation on the excess but shall not exceed 1 % of such excess

  • Loan Agreement Stamp Duty: 0.5% of loan amount

  • Loan processing fees: RM50-1,000 (one-time fee imposed by the bank)

  • Disbursement fees: A few hundred ringgit

Others

  • Fee for transfer of ownership title: A few hundred ringgit

  • Govt tax on legal agreements: 6% of total lawyer fees

  • Valuation Report:

    ​- First RM100,000 : 0.25%

    - Next residue up to RM2mil : 0.20%

    - Next residue up to RM7mil : 0.167%

    - Next residue up to RM15mil : 0.125%

    - Next residue up to RM50mil : 0.10%

  • Mortgage Insurance (MRTA/MLTA): Optional for most banks, but good to have.

(Image source: EdgeProp.my)

What else do I need to pay for upon delivery of vacant possession?

Congratulations! Now that you've got the keys to your new property, you'll need to consider these costs too:

  • Monthly
    - Maintenance fees and sinking fund (if applicable)

    - TNB (electricity)

    - Syabas (water)

  • Every 6 months

    - Indah Water (sewerage)

    - DBKL Assessment (cukai pintu)

  • Annually
    - Quit Rent (cukai tanah, for landed properties)

    - Parcel Rent (cukai petak, for strata properties)

    - Fire Insurance

  • Others, if applicable
    - Renovation and furnishing costs

    - Home insurance (Houseowner policy, Householder policy, Landlord insurance, etc.)