Stamp Duty Waiver For First-Time House Buyer
We’re about to welcome 2023 in less than one-month time. And 2023 is going to be an exciting year for property market because some expert said the property market is crushing next year and some said it won’t.
Regardless which, we want you to prepare for the stamp duty information for the year of 2023. Just in case, if you need to grab that dream property that you’ve been saving for years. ??
” THE BEST TIME TO BUY A HOME IS ALWAYS FIVE YEARS AGO”
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HOW TO CALCULATE STAMP DUTY?
Here is the stamp duty scale.
2023 STAMP DUTY SCALE
Stamp duty Fee 1% : For First RM100,000
Stamp duty Fee 2% : RM100,001 To RM500,000
Stamp duty Fee 3% : RM500,001 and RM1,000,000
Stamp duty Fee 4% : >RM1,000,000
We will show how simple the calculation for easy understanding.
For example, if you’re buying a house amounting RM300,000.The total stamp duty is :-
Stamp duty Fee 1% : For First RM100,000 = RM1000.00
Stamp duty Fee 2% : RM100,001 To RM300,000 = RM4,000.00
Total stamp duty must pay is RM5,000.00
So, this is the total stamp duty, then you can add legal fees, disbursement fees, valuation fees and other fees to estimate how much the cost of buying the house.
Good news for First-Time House Buyer! Woohoo!
With the generosity of Malaysian Government and to increase the purchasing house for first-time house buyer, the government had implemented a stamp duty exemption started 2021 until 31st December 2025.
Criteria For First-Time House Buyer Stamp Duty Waiver:
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Must be first-time house buyer. Never buy a house before and never inherited any property.
- The Property Price must be less than RM500,000, if purchased between 1st January 2021 to 31st December 2025.
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Stamp duty exemption is capped at RM500,000 on the property market value and loan amount.
Is house below RM300,000 doesn’t need to pay Stamp Duty?
Now, we’re going to give you a second example.
Let’s said, using the same example, based on RM300,000 purchase price.
Stamp duty Fee 1% : For First RM100,000 = RM1000.00
Stamp duty Fee 2% : RM100,001 To RM300,000 = RM4,000.00
Total stamp duty must pay is RM5,000.00
Due to, for first-time house buyer there is an exemption of Stamp Duty for property less than RM500,000, therefore you’re not required to pay anything.
How about for Purchase Price Above RM300,000?
Okay for the third example, if the Purchase Price is RM400,000.00.
The Actual Calculation of Stamp Duty is (before first-time house buyer stamp duty exemption): –
Stamp duty Fee 1%: For First RM100,000 = RM1000
Stamp duty Fee 2%: RM100,001 To RM500,000 = RM6000
Total stamp duty must pay is RM7,000.00
And because of the first-time house buyer stamp duty exemption, you can apply for the stamp duty exemption.
More Good News!
Stamp Duty Exemption For Loan Agreement Stamp Duty!!
Yes, not only the exemption applies to Property transfer stamp duty but also to Loan Agreement Stamp Duty. Is that good or what!! ?
How To Calculate Loan Agreement Stamp Duty?
It’s quite simple to calculate Loan Agreement Stamp Duty. There are no scale fees, it’s a flat rate of 0.50% from the Total Loan Amount.
For Example,
If the loan amount is RM500,000.
The Loan Agreement Stamp Duty will be RM500,000 x 0.50% = RM2500.00
And if you’re first-time house buyer, this RM1500 will be exempted. Meaning, you’ll pay ZERO!! ?
Another Example,
How about if the loan amount is RM400,000?
The Loan Agreement Stamp Duty will be RM400,000 x 0.50% = RM2000.00
And again, if you’re first-time house buyer, you can apply for the stamp duty exemption.
“IF YOU CAN’T STOP THINKING ABOUT IT… BUY IT.”
Do You Realise How Much Saving You Get??
Let’s do a calculation based on RM500,000 Purchase Price and Loan Amount RM450,000 (margin of finance 90%) to see how much First-time House Buyer can save $$ on their Stamp Duty.
For Property Price of RM500,000
The Actual Calculation of Stamp Duty is (before first-time house buyer stamp duty exemption):-
Stamp duty Fee 1%: For First RM100,000 = RM1000
Stamp duty Fee 2%: RM100,001 To RM500,000 = RM8000
Total stamp duty must pay is RM9,000.00
After first-time house buyer stamp duty exemption: RM9000-RM9000= RM0.00 (Stamp Duty to pay)
Saving Amount: RM9000.00
For Loan Amount : RM450,000
The Actual Calculation of Stamp Duty is (before first-time house buyer stamp duty exemption) :-
RM450,000 x 0.50% = RM2250.00.
After the stamp duty exemption.
Saving Amount: RM2250.00
