First Home Buyer Malaysia 2026: Incentives to Check

Buying a first home is the biggest financial decision most families make. The government helps with several incentives, but each has conditions, a price limit and an end date. An incentive you read about on social media may already have ended, or may not apply to you.

This article explains the first-home incentives in force in September 2026, how to check whether you qualify, and how much you could save, with worked examples.

General information only, not legal, financial or tax advice. Eligibility is decided by the relevant authority.

First-home incentives: which ones apply to you?Each incentive has its own test: previous ownership, the home's price and the SPA date.

• 100% stamp-duty exemptionTransfer and loan documents for a home up to RM500,000; SPA 1 January 2021 to 31 December 2027
• Tax relief on loan interestUp to RM7,000 a year (home up to RM500,000) or RM5,000 (up to RM750,000), three years of assessment; SPA 2025 to 2027
• Financing with SJKP backingFirst homes through participating banks, most helpful for irregular incomes

The incentives in force

Incentive 1: the stamp-duty exemption

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. Duty is charged in tiers on the price or market value, whichever is higher.
• The loan agreement with your bank. Duty is 0.5% of the loan amount.

The orders in force now

Two orders give this exemption:

1. Stamp Duty (Exemption) Order 2021 [P.U.(A) 53/2021], amended by P.U.(A) 448/2025, for the instrument of transfer.
2. Stamp Duty (Exemption) (No. 2) Order 2021 [P.U.(A) 54/2021], amended by P.U.(A) 449/2025, for the loan agreement.

The 2025 amendments extended the SPA window to 31 December 2027, as proposed in Budget 2026. The Malaysian Bar summarised both orders in its Circular No 128/2026 dated 16 April 2026.

Main conditions

• You are an individual who is a Malaysian citizen.
• The home is one residential unit only, valued at no more than RM500,000.
• The SPA is signed on or after 1 January 2021 but no later than 31 December 2027.
• You have never owned any residential property, including one obtained by inheritance or gift, held alone or jointly.
• For the loan agreement, the lender must be one of those listed, including licensed banks, licensed Islamic banks, development financial institutions, insurers, takaful operators, registered cooperatives and employers with a staff housing loan scheme.

One issue to check: SOHO and serviced apartments

The Malaysian Bar noted that the Finance Act 2025 defines “residential property” to include a serviced apartment or SOHO used solely as a dwelling. However, LHDN’s statutory declaration templates exclude SOHO, SOFO, SOVO and serviced apartments. If you are buying one of these, ask your lawyer before you sign the SPA.

Worked examples of the saving

Two worked examples: a RM450,000 home that qualifies, and a RM520,000 home that does not

Example A: home at RM450,000, loan of 90% (RM405,000)

Transfer duty: RM100,000 × 1% = RM1,000, plus RM350,000 × 2% = RM7,000, total RM8,000.

Loan agreement duty: RM405,000 × 0.5% = RM2,025.

Total duty without the exemption: RM10,025. An eligible first-time buyer pays RM0 on these two documents.

Example B: home at RM520,000, loan of 90% (RM468,000)

The value is above RM500,000, so this home does not qualify under these orders, even if the buyer has never owned a home.

Transfer duty: RM1,000 + RM8,000 + (RM20,000 × 3% = RM600) = RM9,600. Loan agreement duty: RM468,000 × 0.5% = RM2,340.

Total duty: RM11,940. A RM20,000 difference in price turns a saving into a cost.

The lesson: if you are close to the RM500,000 limit, compare the price together with the total stamp duty, not the price alone.

Incentive 2: tax relief on housing loan interest

Under Budget 2025, a first-time buyer can claim income tax relief on housing loan interest:

• Up to RM7,000 a year for a home priced up to RM500,000.
• 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 interest is paid.
• The home must not earn income, for example by being rented out.
• Joint owners share the relief in proportion to the interest each pays.

Note that for a home under construction, interest is paid on the amount the bank has released, so interest in the early years may be lower. Check LHDN’s guidance on how the first year is counted before filing.

Incentive 3: SJKP financing guarantees

Syarikat Jaminan Kredit Perumahan Berhad (SJKP), under the Ministry of Finance, guarantees first-home financing from participating banks. The guarantee helps most those whose income is irregular or hard to prove, such as gig workers, small traders and the self-employed.

You apply for SJKP through a participating bank, not directly to SJKP. See the Bank Loans page for the document list and participating banks.

What about civil servants?

If you are a civil servant, LPPSA housing financing is usually the main route. The stamp-duty exemption and tax relief above can still apply if you meet their conditions. See the LPPSA page.

Your lawyer and the statutory declaration

The stamp-duty exemption is not automatic. It is applied for when the documents are stamped, usually by the lawyer handling your transfer and loan agreement.

LHDN has issued statutory declaration templates for each exemption. In the declaration you confirm:

• the SPA and property details (title number, lot, mukim and state);
• that the purchase price is no more than RM500,000;
• that the property is not a SOHO, SOFO, SOVO or serviced apartment (as the template states);
• that you have never owned a residential property, including by inheritance or gift, and have not had this exemption approved before;
• that you understand that if the information is untrue, the exemption is withdrawn and duty and penalties may be charged.

The declaration is sworn before a Magistrate, a Sessions Court Judge or a Commissioner for Oaths. Because there are penalties for false information, answer honestly, especially about inherited homes.

Combining the incentives: a full example

Full hypothetical example: Aina, a RM420,000 home with a 90% loan, all incentives combined

Example: Aina, a first-time buyer, RM420,000 home with a 90% loan (RM378,000)

Transfer stamp duty exempted: RM100,000 × 1% = RM1,000, plus RM320,000 × 2% = RM6,400, total RM7,400.

Loan agreement stamp duty exempted: RM378,000 × 0.5% = RM1,890.

Cash not needed at purchase: RM9,290.

Interest tax relief: up to RM7,000 a year for three consecutive years of assessment, if the SPA is signed between 1 January 2025 and 31 December 2027. This reduces taxable income, not the tax itself.

All figures are hypothetical. The actual figures are confirmed by your lawyer and LHDN.

The RM9,290 you do not have to pay can go towards the 10% due on signing the SPA, legal fees, or a buffer for interest during construction.

Questions to ask your lawyer and bank

• Does this home count as “residential property” for the exemption, especially if it is a serviced apartment or SOHO?
• Could the market value be higher than the price, and would it exceed RM500,000?
• When must the statutory declaration be signed, and what documents are needed?
• Is my lender one of the institutions listed in the order?
• For a joint purchase, how does each buyer declare first-home status?

How to check whether you qualify, step by step

1. Check ownership Has your name ever been on any home's title, including an inherited one?
2. Check the price Is the home up to RM500,000, or up to RM750,000?
3. Check the date Can the SPA be signed before 31 December 2027?
4. Check financing LPPSA, a bank, or a bank with an SJKP guarantee?
5. Tell your lawyer The lawyer prepares the statutory declaration for the exemption.

Common mistakes

• Assuming an inherited home does not count. If your name was ever on the title as an owner, even jointly with siblings, you are not a first-time buyer under these orders.
• Relying on an old incentive. For example, under the 2022–2023 i-MILIKI initiative, homes above RM500,000 up to RM1,000,000 got a 75% exemption. That applied only to SPAs from 1 June 2022 to 31 December 2023 and no longer applies.
• Confusing the SPA date with the key date. The exemption follows the date the SPA is signed.
• Forgetting the market value test. Transfer duty is on the price or the market value, whichever is higher.
• Mixing up the limits. The stamp-duty exemption stops at RM500,000; the interest tax relief goes up to RM750,000 with a lower cap.

Checklist before you sign the SPA

• Copy of MyKad and proof you are a Malaysian citizen
• An honest answer: have you ever owned a residential property, including by inheritance or gift?
• The home's price and an idea of its market value
• The expected SPA date, before 31 December 2027
• A financing offer from LPPSA or a bank
• The name of the lawyer handling the exemption declaration
• Yearly loan interest records for your tax claim later

Next steps

Check how much you may borrow with the eligibility calculator and our guide to checking eligibility before buying a first home, then read First-Home Incentives for the latest summary. If you are interested in a RumahHQ project, register interest free and without obligation, and ask for help checking your eligibility.