What Fees Do You Pay When Buying a House in Malaysia?

📌 Quick Answer: As of 14 July 2026, buying a house in Malaysia involves five main upfront costs beyond the purchase price: a booking fee (absorbed into the downpayment), a 10% downpayment, legal fees on the Sale and Purchase Agreement, stamp duty on the property transfer and loan agreement, and a property valuation fee. According to LHDN, first-time buyers on properties up to RM500,000 are currently fully exempt from stamp duty on both documents. None of these fees can be funded from your home loan. 

The property price is what buyers focus on. The fees are what catch them off guard. 

According to PropertyGuru Malaysia’s H1 2026 Consumer Sentiment Study, about 65% of Malaysians intending to buy a property have budgets below RM500,000. Within that budget, the transaction fees need to fit alongside the downpayment. Many buyers discover this only after they have identified a property they want and have started the process, which is too late to adjust the plan. 

Here is what every fee is, when it is paid, and what it is calculated on. 

Booking Fee 

When you decide on a property and commit to buying it, most developers and some sellers require a booking fee upfront. For many first- or second-home purchases, buyers typically budget for a 10% down payment, depending on loan eligibility, property valuation and the bank’s approved financing margin. 

For sub-sale transactions, buyers may be asked to pay an earnest deposit or booking fee before signing the SPA. For new launches by licensed developers, buyers should be cautious about any payment requested before the prescribed SPA is signed and should confirm the proper process with their own lawyer. 

For sub-sale transactions, buyers may be required to pay an earnest deposit or booking fee before signing the SPA. For new launches by licensed developers, buyers should exercise caution when asked to make any payment before the prescribed SPA is signed and verify the proper process with their own lawyer. 

Downpayment 

The standard downpayment for a first or second residential property in Malaysia is 10% of the purchase price. The bank finances the remaining 90%, subject to loan eligibility and property valuation. 

For third and subsequent properties, Bank Negara Malaysia requires a minimum downpayment of 30%. 

The downpayment must come from your own cash savings or from an EPF Akaun Sejahtera withdrawal if you meet KWSP’s eligibility conditions. It cannot come from the home loan itself. 

Legal Fees on the Sale and Purchase Agreement 

You appoint a lawyer to prepare and handle the Sale and Purchase Agreement. Legal fees are charged according to the Solicitors Remuneration Order, which sets a tiered scale based on the purchase price. The higher the purchase price, the higher the legal fee, though the rate decreases at higher price tiers. 

For new launches from developers, the developer typically appoints the law firm handling the SPA. For sub-sale properties, you appoint your own lawyer and the seller appoints theirs. In both cases, you pay your side of the legal costs. 

Stamp Duty on the Transfer Instrument 

The Memorandum of Transfer (MOT) is the legal document that transfers ownership of the property into your name. It attracts stamp duty calculated on the purchase price. 

According to LHDN, first-time buyers purchasing a residential property priced up to RM500,000 are fully exempt from stamp duty on the transfer instrument under current regulations. This exemption has been extended to 31 December 2027. Verify the current status and conditions at hasil.gov.my before proceeding, as exemption terms can change. 

For properties above RM500,000, or for buyers who are not first-timers, stamp duty applies at tiered rates. Check the current rate schedule at hasil.gov.my. 

Stamp Duty on the Loan Agreement 

The loan agreement between you and your bank is also a stampable document. Stamp duty is calculated on the loan amount. 

According to LHDN, first-time buyers on properties up to RM500,000 are also fully exempt from stamp duty on the loan agreement under the same current exemption. For properties above the threshold or for non-first-time buyers, stamp duty on the loan agreement depends on the loan amount. 

Together, the transfer and loan agreement stamp duty exemptions represent a meaningful saving for buyers in the sub-RM500,000 segment. 

Property Valuation Fee 

Before approving your loan, the bank commissions an independent valuation of the property. This confirms the property’s market value supports the loan amount being requested. You pay this fee upfront, before loan approval. 

The valuation fee is calculated according to the scale fee set by the Board of Valuers, Appraisers, Estate Agents and Property Managers Malaysia, based on the property value. For most residential properties in the sub-RM600,000 range, this is typically a few hundred ringgit. Some developers absorb the valuation cost for new launches. For sub-sale purchases, the buyer pays this directly. 

Fees You Cannot Pay from Your Loan 

Your home loan pays for the property. Every fee listed above must be funded from your own cash resources. Legal fees, stamp duty, and the valuation fee are all out-of-pocket expenses that come before your loan is disbursed. 

This is the gap that consistently surprises buyers who plan their finances around the property price and the downpayment alone. On a RM450,000 property, the total transaction costs beyond the 10% downpayment can range from approximately RM5,000 to over RM12,000 depending on legal fees, whether any fee absorptions apply, and the specific transaction structure. 

For buyers in the sub-RM500,000 market, the stamp duty exemption removes a significant portion of this cost. For buyers above that threshold, it is an additional amount that needs to be in the cash plan before the process begins. 

Ongoing Costs After Purchase 

Transaction fees are one-time costs. Ongoing costs begin after you move in. 

For stratified properties, condominiums, apartments, serviced apartments, monthly maintenance fees and sinking fund contributions apply on top of the loan repayment. Property assessment tax is charged annually. Building insurance and utility connection fees apply at handover. 

Ownership is a sustained financial commitment, not a one-time transaction. The full monthly cost, loan repayment plus all property-related expenses, is the figure that needs to fit comfortably within the household’s capacity over the full loan tenure. 

The Bottom Line 

Buying a house in Malaysia involves five main upfront fees beyond the purchase price itself. According to LHDN, first-time buyers purchasing up to RM500,000 are currently exempt from stamp duty on both the transfer instrument and loan agreement, a meaningful saving for the majority of Malaysian buyers whose intended budgets sit below that threshold. Plan for all fees from cash in hand, not from the loan, and verify the current stamp duty exemption status at hasil.gov.my before committing to a purchase. 

Quick Recap 

Upfront costs when buying a house in Malaysia include a booking fee (absorbed into downpayment), 10% downpayment (30% for third property per BNM), SPA legal fees on purchase price, stamp duty on the transfer instrument and loan agreement (currently exempt for first-time buyers on properties up to RM500,000 per LHDN) and a property valuation fee. None of these can be funded from the home loan. Ongoing ownership costs including maintenance fees and assessment tax are separate. Verify current stamp duty exemption conditions at hasil.gov.my.