Budget 2026: The Housing Measures, Verified

Budget 2026 was tabled in the Dewan Rakyat on Friday, 10 October 2025. Many summaries circulate on social media, and some mix old measures, proposals and schemes that have already ended. This article lists only the housing measures we verified ourselves from the official Budget 2026 speech text (including Annexes I and II) and the official statements that followed, with the amount and source for each.

General information only, not legal, financial or tax advice. Eligibility for each scheme is decided by the implementing agency. Checked on 24 September 2026.

Budget 2026 housing measuresverified from the official Budget 2026 speech text

1. 1First-home stamp duty100% up to RM500,000; SPA up to 31 December 2027
2. 2SJKP financingUp to RM20 billion for 80 thousand first-time buyers
3. 3LPPSAEligibility limit up to RM1 million; start date not yet announced
4. 4People's housingPRR, RMR, Residensi MADANI and PR1MA; RM672 million
5. 5Rent-to-ownPolicy encouragement to financial institutions, not a funded scheme
6. 6Other tax measures8% non-citizen stamp duty, building conversions, CCTV

Summary: Budget 2026 housing measures

1. First-home stamp-duty exemption to 2027

What was announced. Paragraph 217 of the speech: a full stamp-duty exemption on the instrument of transfer and the loan agreement for first homes priced up to RM500,000, extended by two years to 31 December 2027. Annex II says it applies to SPAs executed from 1 January 2026 to 31 December 2027 (previously to 31 December 2025).

Legal status. The measure is in force through P.U.(A) 448/2025 (transfer) and P.U.(A) 449/2025 (loan agreement), as summarised in Malaysian Bar Circular No. 128/2026.

Main conditions:

• An individual Malaysian citizen.
• One residential unit only, valued at no more than RM500,000.
• SPA signed from 1 January 2021 to 31 December 2027.
• Never owned a residential property, including one obtained by inheritance or gift, whether alone or jointly.

How to apply. LHDN has issued statutory declaration templates for applying for this exemption. Your lawyer handles it when the documents are stamped. The Malaysian Bar notes one open issue: LHDN’s template excludes SOHO, SOFO, SOVO and serviced apartments, although the Finance Act 2025 defines “residential property” to include serviced apartments and SOHO used solely as a dwelling. If you are buying one of these, ask your lawyer.

Hypothetical example: stamp duty saved on a RM400,000 home

Example: how much is saved (hypothetical)

A RM400,000 home with a 90% loan (RM360,000).

Transfer duty without the exemption: RM100,000 × 1% = RM1,000, plus RM300,000 × 2% = RM6,000, total RM7,000. Loan agreement duty: RM360,000 × 0.5% = RM1,800.

Total duty exempted for an eligible first-time buyer: RM8,800. This is an estimate only.

Full details and common mistakes are in our guide First-Home Incentives: What to Check.

2. SJKP guarantees of up to RM20 billion

What SJKP is. Syarikat Jaminan Kredit Perumahan Berhad (SJKP) guarantees home loans for first-time buyers who find it hard to get an ordinary loan, for example because they have no regular payslip. With an SJKP guarantee, banks are more willing to approve the loan.

What was announced. Paragraph 216 of the speech: 80 thousand more first-time buyers are offered SJKP guarantees, raised to up to RM20 billion from RM10 billion, to help more gig workers and self-employed people. The initiative was formally launched at the Budget 2026 Initiatives Launch (speech dated 15 April 2026), which also mentioned guarantees of up to 120% and wider ownership options through a Rent-to-Own Scheme (RTO).

The two SJKP schemes (according to SJKP’s website):

Basic eligibility (both schemes): a citizen aged 18 or above; a first home purchase; total repayments on all loans no more than 65% of gross monthly income; no CCRIS arrears above 2 months in the last 12 months; no other negative credit record in the last 24 months. Applicants with fixed or non-fixed income are accepted.

How to apply. Apply for a home loan directly at a financial institution taking part in SJKP, with documents such as the SPA or offer letter, a copy of your identity card, income or EPF statements, and for the self-employed, a self-employment declaration or an income statement certified (for example by a JKKK, a Penghulu or a bank branch manager).

Hypothetical example: a gig worker buying a RM300,000 home with SJKP MADANI

Example: a gig worker buying a RM300,000 home with SJKP MADANI (hypothetical)

The SJKP MADANI guarantee can cover up to 100% of the house price (RM300,000) and up to a further 20% (RM60,000) for MRTA/MRTT, legal fees, valuation fees, renovation and furniture, a total of RM360,000, equal to the scheme's financing limit. The bank still assesses what you can afford: total repayments on all loans must stay within 65% of gross income. Estimate only; approval is up to the bank.

For government contract staff

Paragraph 237 of the speech: for contract staff who struggle to get a first home loan, SJKP will guarantee loans of up to 120% with a total value of RM1 billion, and BSN provides RM500 million to finance first home loans for contract civil servants, including KEMAS Tabika and Taska teachers.

3. Measures for civil servants and LPPSA

LPPSA (Lembaga Pembiayaan Perumahan Sektor Awam, the Public Sector Home Financing Board) provides home financing to civil servants. Paragraph 237 of the speech announced:

• Maximum LPPSA financing eligibility raised to up to RM1 million, in line with salary adjustments and higher market prices.
• Second financing made easier without first settling the first financing, subject to the remaining eligibility limit; the official start date has not been announced (checked 29 September 2026); check LPPSA’s official website.
• The LPPSA Young Housing Financing Scheme extended to 31 December 2026, expected to benefit up to 48 thousand young civil servants under 30.
• Almost RM2.2 billion to build, maintain and repair government quarters.

Paragraph 214 also mentions Kota MADANI Presint 19, Putrajaya, providing 10 thousand homes with 80% set aside for civil servants.

Details of LPPSA’s new rates and eligibility table are in our guides LPPSA Financing Limit 2026 and how to apply for LPPSA for a developer home.

4. People’s housing: PRR, RMR, Residensi MADANI and PR1MA

Paragraph 216 and Annex I of the speech list a People’s Housing Construction allocation of RM672 million:

Rumah Mesra Rakyat is run by Syarikat Perumahan Negara Berhad (SPNB). According to SPNB, the programme is for households earning under RM5,000 who have no home or live in a dilapidated one but own land on which to build their own home.

PR1MA. According to PR1MA’s website, you are eligible if you are a Malaysian citizen, single or married, aged 21 or above, with individual or household (husband and wife) gross income of RM2,500 to RM15,000 a month, and the PR1MA home is your first or second home. The process: register an account, receive launch notices, apply, ballot, choose a unit, apply for financing, sign the SPA and receive the keys.

The speech also allocates RM500 million to repair or rebuild more than 3,300 dilapidated homes including 380 fishermen’s homes, and RM143 million to maintain low- and medium-cost strata housing including replacing old lifts.

What about “Rumah Mampu Milik”?

We found no specific allocation labelled “Rumah Mampu Milik” (affordable homes) in the Budget 2026 speech text. The affordable housing programmes it names are those listed above.

5. Rent-to-own and build-then-sell

Paragraph 219: in line with the Thirteenth Malaysia Plan (RMK13), the Government encourages financial institutions to support rent-to-own and build-then-sell schemes. This is policy encouragement, not a scheme with its own allocation and conditions in the speech. Annex I also mentions a Step Up Financing Scheme, a Government guarantee for young people buying a first home with lower repayments for the first 5 years. Detailed conditions are not given in the speech; check with your bank before relying on it.

Build-then-sell means homes are finished before they are sold, so buyers see the real home before buying.

6. Other tax measures that touch housing

• Stamp duty for non-citizens: the flat stamp-duty rate on instruments transferring residential property by non-citizen individuals (except permanent residents) and foreign companies rose from 4% to 8%, for instruments executed from 1 January 2026 (Annex II). The speech says the aim is to curb house-price increases.
• Converting commercial buildings to homes: a special tax deduction of 10% of qualifying spending on renovating and converting commercial buildings into residences, capped at RM10 million (paragraph 220).
• CCTV for household use: the existing relief of up to RM2,500 (environmental sustainability) was widened to include CCTV and food waste grinders, for years of assessment 2026 and 2027 (Annex II).

Tax relief on first-home loan interest is not a Budget 2026 measure; it was announced earlier and still runs for SPAs from 2025 to 2027. See our first-home incentives guide.

From speech to benefit: how budget measures take effect

Not everything announced in the speech takes effect on the same day. The usual path:

1. Budget speech Proposals announced (10 October 2025).
2. Law or order Tax measures passed through a finance act or gazetted orders.
3. Agency launch Agencies such as SJKP or LPPSA set conditions and dates.
4. You apply Through a bank, a lawyer, LPPSA or the agency portal.
5. Approval Decided by the agency or bank under the conditions.

Examples from 2026: the stamp-duty exemption took effect through P.U.(A) 448/2025 and 449/2025; the SJKP guarantee was launched at an event whose speech is dated 15 April 2026; LPPSA second financing was announced with no official start date as at 29 September 2026. JPPH’s media release of 10 September 2026 also cites the larger SJKP guarantee and the stamp-duty extension as measures supporting market demand.

Common mistakes

• Treating every figure in the speech as money for individuals. RM20 billion is the ceiling on total SJKP guarantees, not a grant to buyers.
• Assuming the new financing limit applies to everyone. The LPPSA limit of up to RM1 million is still subject to each applicant’s eligibility.
• Signing an SPA before checking the stamp-duty exemption conditions, for example if you once inherited a share of a house.
• Relying on social-media summaries. Check the official text at belanjawan.mof.gov.my and the agencies’ websites.

Checklist for buyers

• Are you a first-time buyer as defined in the stamp-duty orders?
• Is the home price within the RM500,000 limit for the stamp-duty exemption?
• Will the SPA be signed before 31 December 2027?
• If your income is not fixed, does your chosen bank take part in SJKP?
• If you are a civil servant, have you checked your current LPPSA eligibility?
• Have you worked out the full cost of buying? See the full cost of buying a new home.

Next step

Check your financing eligibility with our eligibility calculator (estimate only), and read the first-home financing guide. If you would like to buy a RumahHQ Development Sdn Bhd home when a project launches, register your interest. It is free and non-binding.

Register Interest