Government Assistance to Afford a Home

A list of government benefits in Malaysia to help make buying a house more affordable

By Property Hunter


Last updated July 2021

Buying a house is tough for the majority of Malaysians. High upfront payments, as well as a lifetime mortgage loan commitment, make it understandable to use any help we can get to lower the cost of owning a house.

Here are 7 Entry Costs of Buying a Home.

In addition to the many goodies and freebies, and promotional packages offered by real estate developers, the government has offered some incentives to help the rakyat, particularly the low-income group and first-time homebuyers. Without further ado, let's check them out.

You can now download the Tax Guide: Buy, Rent & Sell ebook.

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Buyers can enjoy stamp duty and other fees exemption under the Home Ownership Campaign (HOC), which has been extended until December 2021.

Read More About HOC

1. My First Home Scheme (Skim Rumah Pertamaku)

My First Home Scheme is a home ownership initiative that was first announced in the 2011 Budget by the Malaysian government to assist first-time home buyers. This scheme allows first-time home buyers to acquire up to 110% financing from the participating banks, without the need to pay a down payment (0%). It only applies to residential property for own occupation either under construction or a completed unit.

Criteria of eligible applicants are:

  • Must be a Malaysian citizen
  • Must be a first-time home buyer
  • Open to salaried worker or self-employed individuals
  • Allows single or joint applicants

Gross Monthly Household Income:

  • Up to RM 5,000 - for single or joint applicant(s)
  • Exceed RM 5,000 and not more than RM 10,000 - for joint applicants (subject to maximum gross monthly household income of RM 5,000 per applicant)
  • No record of impaired financing for the past 12 months (eg: failure to repay loans)

Criteria of eligible properties are:

  • Residential properties either new or sub-sale in Malaysia
  • Mortgage value not more than RM 500,000
  • Properties must be owner-occupied

Financing requirements:

  • Financing period must not exceed 35 years, subject to applicant’s age not exceeding 70 years at the end of financing period
  • Amortizing facility only (no redrawable features)
  • Installments payable via monthly salary deduction or standing instruction 
  • Fire insurance /takaful is compulsory 
  • Moratorium period of 5 years

2. Stamp Duty Exemption

Malaysian first-time home buyers now get to enjoy a stamp duty exemption for their memorandum of transfer (MOT) and loan agreement for their first property pricing not more than RM 500,000. This will take place from January 2021 until 31 December 2025.

Requirements: 

  • Property type: Residential property
  • Effective date: On or after 1 January 2021 but not later than 31 December 2025
  • The individual has never owned any residential property including the ones which have been inherited or given as a gift, either individually or jointly. 
  • Residential property meaning: a house, a condominium unit, an apartment or a flat.
  • Individual meaning: Malaysian citizen or a co-purchaser of a residential property who is a Malaysian citizen.

3. Home Ownership Campaign (HOC) 2020-2021

The HOC is a government initiative designed to support home buyers searching for homes to purchase. Meanwhile, it also encouraged the sales of unsold properties in the housing market. The Home Ownership Campaign objective is to encourage the purchase of certain properties with the support of key financial incentives. 

Those incentives are as below:

  • Full stamp duty exemption on memorandum of transfer (MOT) and Sales and Purchase Agreements (SPA) for properties that are priced until RM 1 million.
  • Partial stamp duty exemption on MOT and SPA for properties that are priced from RM 1 million until RM 2.5 million. 
  • 0.5% stamp duty charged on loan agreement is fully exempted.
  • 10% house discount, except those subject to government price controls (including Sabah).
  • Sales and Purchase Agreement (SPA) must be stamped between 1 June 2020 and 31 December 2021.

Criteria of eligible properties are:

  • Open to all Malaysian citizens, with no limit of the number of purchases.
  • Only for residential properties in the primary market (homes that have been launched or completed) - not applicable to the secondary market. 
  • The property priced at RM 300,001 to RM 2.5 million (before 10% house discount).
  • The properties must be registered with key real estate associations such as:

Sabah Housing and Real Estate Developers Association (SHAREDA)

Sarawak Housing and Real Estate Developer (SHEDA)

Real Estate and Housing Associations (REHDA)

Criteria of eligible applicants are:

  • Developer and purchaser must be Malaysian citizen


4. My Second Home Programme (MM2H) - Will be re-introduced

The Malaysia My Second Home Programme (MM2H) was promoted by Malaysian government to allow foreigners who fulfill certain criteria to stay in Malaysia for as long as possible on a multiple-entry social visit pass but was suspended in 2020 to allow the Ministry of Tourism, Arts and Culture (MOTAC) and related agencies to comprehensively review and re-evaluate the program. For more information, please visit the website: http://www.mm2h.gov.my/  

If you're buying a property for the first time ever, make sure you don't get blindsided and put money aside for those other expenses.

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