First Home Stamp Duty After Budget 2027: Buyer Guide

The short answer: The proposed first home stamp duty change would keep a full exemption up to RM500,000 and give 50% exemption on the portion above RM500,000 for homes up to RM750,000. With 90% financing, the example at RM600,000 falls from RM14,700 today to RM1,725 under the proposal. A home at RM800,000 receives no proposed exemption, so the shown duty remains RM21,600.

The biggest saving is at the RM750,000 cut-off

The useful comparison is not simply “cheaper home means lower duty”. The exemption changes sharply at the price boundaries. A first home at RM450,000 already receives full relief today, while a first home at RM600,000 has a much lower proposed bill than today. At RM750,000, the proposal still reduces the bill, but crossing above that limit removes the proposed exemption altogether.

The examples below use the stated assumptions: you are a Malaysian citizen buying a first residential property, the financing is 90%, and the loan agreement exemption follows the same price split on a pro-rata basis. KiraSmart applies that loan agreement assumption until the exemption order explains how the treatment works.

The RM750,000 example is the highest price in the proposed partial-exemption band and has the largest shown saving: RM15,563. The RM800,000 example is only a price step above that band, but its proposed saving is RM0 because homes above RM750,000 get no exemption.

How the proposed partial exemption works

For a qualifying home up to RM500,000, the proposal gives a full exemption. For a qualifying home above RM500,000 and up to RM750,000, the first RM500,000 is fully exempt, while 50% of the rest is exempt.

That split applies to both parts of the stamp duty shown in the examples: the transfer instrument, commonly called the memorandum of transfer or MOT, and the loan agreement. The loan treatment is an assumption for this guide, with the same price split applied pro rata.

At RM600,000, the gross MOT stamp duty under the proposal is RM12,000. The stated MOT exemption is RM10,500, leaving RM1,500. The loan is RM540,000, and its gross loan agreement stamp duty at 0.5% is RM2,700. The stated loan agreement exemption is RM2,475. Together, the remaining duties produce the shown total of RM1,725.

At RM700,000, the proposal shows RM15,000 gross MOT duty and RM12,000 MOT exemption, leaving RM3,000. The loan agreement duty is RM3,150, with RM2,700 exempt. The total is RM3,450.

At RM750,000, gross MOT duty is RM16,500 and the MOT exemption is RM12,750, leaving RM3,750. The loan agreement duty is RM3,375 and the stated exemption is RM2,813. The displayed total is RM4,313.

What the current and proposed rules cover

Today, Malaysian citizens buying their first residential property priced up to RM500,000 pay no stamp duty on the transfer or the loan agreement. The current rule applies where the sale and purchase agreement is signed up to 31 December 2027. Above RM500,000, there is no current exemption.

Budget 2027 proposes a different price range for agreements signed from 1 January 2027 to 31 December 2030:

• Homes up to RM500,000: full exemption.
• Homes above RM500,000 and up to RM750,000: full exemption on the first RM500,000, plus 50% exemption on the rest.
• Homes above RM750,000: no exemption.

The proposal is not yet law. It becomes law only when the Finance Bill 2027 is passed, and the exemption order will set the details. That matters if you are deciding whether to sign an agreement around the start of the proposed period: the date range in the proposal does not by itself replace the legislative process.

The examples use the proposed price split for both the transfer and loan agreement. The exemption order will determine the final treatment of the loan agreement.

Why the loan agreement changes the total

A buyer can focus on MOT duty and overlook the separate loan agreement duty. The loan agreement is stamped at 0.5% of the loan, so a 90% financing choice affects this part of the bill.

For the RM450,000 example, the loan is RM405,000. The stated loan agreement stamp duty is RM2,025, and the proposed exemption is also RM2,025. The gross MOT duty is RM8,000, with RM8,000 exempt. The total stamp duty is therefore RM0 under the proposal.

For RM600,000, the loan is RM540,000 and the loan agreement duty is RM2,700. For RM700,000, the loan is RM630,000 and the loan agreement duty is RM3,150. For RM750,000, the loan is RM675,000 and the loan agreement duty is RM3,375.

The RM800,000 example shows the other side of the boundary. Its loan is RM720,000, producing loan agreement duty of RM3,600. Its MOT duty is RM18,000, and the total shown is RM21,600 because no proposed exemption applies above RM750,000.

Check the price basis before signing

Transfer stamp duty is tiered rather than charged at one rate on every ringgit. The rates are 1% from RM0 to RM100,000, 2% from RM100,000 to RM500,000, 3% from RM500,000 to RM1,000,000, and 4% above RM1,000,000. The examples use these tiers for the gross MOT figures.

Before you sign, place the property price beside the proposed limit rather than looking only at the monthly loan payment. A price at RM750,000 remains inside the proposed partial-exemption range; a price at RM800,000 does not. Ask the conveyancing solicitor to show the transfer duty, loan agreement duty, each exemption amount, and the remaining total separately.

If your agreement is near the proposed date window, ask which treatment is being applied and ask for the transfer and loan agreement calculations in writing. The price split matters separately from the financing amount, so check both figures against the draft sale and purchase agreement and loan documents.

The stamp duty figures do not cover every purchase cost. Use a separate property legal-fee and valuation estimate for the other transaction costs, and keep the stamp duty lines distinct so a lower duty estimate is not mistaken for a lower overall cash requirement.

Make the signing decision with the final documents

Use the exact property price and financing amount in the calculator, then ask for a written breakdown based on the sale and purchase agreement date. The breakdown can identify the transfer duty, loan agreement duty, each exemption amount, and the remaining total.

Compare the price with the exemption boundary before negotiating the final figure. The table shows why a home at RM750,000 and one at RM800,000 can produce very different stamp duty outcomes even when the prices appear close.

These are educational estimates based on the stated assumptions, not personal advice. Keep the stamp duty estimate separate from legal fees, valuation costs and other purchase expenses when reviewing the cash needed.

Sources

• Ministry of Finance, Budget 2027 tax measures