First-Home Incentives

If you are buying your first home, the government currently offers several incentives: a full stamp-duty exemption on the transfer and the loan agreement, income tax relief on your housing loan interest, and guarantee schemes that help people with irregular income get financing. This page explains each one, who counts as a first-time buyer, and how much you could save.

On this page

1. The stamp-duty exemption right now
2. Incentives at a glance
3. How we design for it
4. Stamp-duty exemption in detail
5. Who counts as a first-time buyer
6. Worked example: how much the exemption saves
7. How the stamp-duty exemption is applied
8. Tax relief on housing loan interest
9. Other help for first-time buyers
10. Common mistakes
11. Checklist for first-time buyers
12. Frequently asked questions

The stamp-duty exemption right now

The exemption depends on the date your sale and purchase agreement (SPA) is signed. Always check the current terms with the official source, or with your lawyer, before you rely on them.

Incentives at a glance

How we design for it

Where land cost allows, we plan our first projects so that homes can fall within the price bands the incentives cover. Prices are announced only at launch.

Stamp-duty exemption in detail

What stamp duty is

Stamp duty is a tax on legal documents under the Stamp Act 1949. When you buy a home, two documents are usually charged: the instrument of transfer (often called the MOT, memorandum of transfer), which moves the title into your name, and the loan agreement with your bank.

Duty on the transfer is charged in tiers on the price or market value, whichever is higher. Duty on a loan agreement is 0.5% of the loan amount.

The orders behind the exemption

Details: the exemption orders and their amendments, and LHDN's statutory declaration

The transfer exemption is the Stamp Duty (Exemption) Order 2021 [P.U.(A) 53/2021], amended by P.U.(A) 448/2025. The loan-agreement exemption is the Stamp Duty (Exemption) (No. 2) Order 2021 [P.U.(A) 54/2021], amended by P.U.(A) 449/2025. The amendments extended the SPA window to 31 December 2027, as proposed in Budget 2026.

LHDN has issued statutory declaration templates that you sign to apply for each exemption. The declaration confirms the price, that you have never owned a residential property, and the SPA details.

SOHO and serviced apartments: check first

The Malaysian Bar noted in April 2026 that the Finance Act 2025 defines "residential property" to include a serviced apartment or SOHO used solely as a dwelling, while LHDN's declaration templates exclude SOHO, SOFO, SOVO and serviced apartments. If you are buying one of these, ask your lawyer how the exemption will be handled.

Who counts as a first-time buyer

• You are an individual (not a company) and a Malaysian citizen.
• You have never owned any residential property, including one you received as an inheritance or a gift, whether alone or jointly.
• The exemption is for one unit only, and you have not had this exemption approved before.
• For the loan agreement, you are named in the SPA and the lender is one of the institutions the order lists.

Cases in full: a first purchase, an inheritance, a joint purchase and a home above the limit (hypothetical)

Examples: does the buyer qualify? (hypothetical cases)

Case	Outcome under the order
Aina, 28, has never owned a home. She buys a terrace house valued at RM420,000.	Likely eligible for both exemptions, if the SPA is signed by 31 December 2027.
Faizal's name is on the title of his late father's house, shared with his siblings.	Not a first-time buyer: a residential property obtained by inheritance, held jointly, counts.
A couple buy together. Neither has owned a home.	Each must meet the conditions. Ask your lawyer to confirm how a joint purchase is declared.
Rahim buys a home valued at RM520,000.	Not eligible: the value is above RM500,000, so no part of the duty is exempt under this order.

Worked example: how much the exemption saves

The value used for transfer duty is the price or the market value, whichever is higher. Your lawyer confirms the final figure when the documents are stamped.

How the stamp-duty exemption is applied

1. 1Check you qualify Never owned a home, citizen, value up to RM500,000.
2. 2Sign the SPA The SPA date must be no later than 31 December 2027.
3. 3Sign the declaration Your lawyer prepares LHDN's statutory declaration; you swear it before a commissioner for oaths.
4. 4Lawyer applies The documents are submitted to LHDN for stamping with the exemption.
5. 5Stamped The transfer and loan agreement are stamped with no duty to pay.

Tax relief on housing loan interest

Under Budget 2025, a first-time buyer can claim income tax relief on the interest paid on a housing loan for a first residential home. The relief is up to RM7,000 a year for a home priced up to RM500,000, and up to RM5,000 a year for a home above RM500,000 up to RM750,000.

The SPA must be signed from 1 January 2025 to 31 December 2027. The relief is for three consecutive years of assessment, starting from the first year you pay interest. The home must not earn income (for example, not be rented out). Joint owners share the relief in proportion to the interest each pays.

Other help for first-time buyers

• SJKP guarantees: if your income is irregular (contract, gig or self-employed), SJKP's guarantee lets a participating bank finance up to RM500,000 (Skim SJKP) or up to RM360,000 with up to 100% of the price (Skim SJKP MADANI). Details, limits and documents are on our bank loan page.
• LPPSA: if you are a civil servant, LPPSA financing is usually the main route. See our LPPSA page for current limits and how to apply.

Bank loans and SJKP · LPPSA financing

Common mistakes

• Assuming a name on an inherited family home does not count. It does, even as a joint owner.
• Signing the SPA after the window closes. The exemption follows the SPA date, not the date you get the keys.
• Forgetting the market value test: transfer duty is based on the price or market value, whichever is higher.
• Mixing up the two limits: the stamp-duty exemption stops at RM500,000; the interest tax relief goes up to RM750,000 with a lower cap.
• Believing an old incentive still applies. Orders end and are replaced; check the current order.

Checklist for first-time buyers

• Confirm you have never owned a residential property, alone or jointly, including by inheritance or gift
• Note the home's price band: up to RM500,000, or up to RM750,000
• Plan to sign the SPA by 31 December 2027
• Tell your lawyer you are claiming the first-home exemption; bring your MyKad
• Keep your bank's yearly interest statement for the tax relief claim
• If your income is irregular, ask a participating bank about SJKP
• Check your eligibility with our calculator before launch