Stamp duty waiver and higher DSR for first-time buyers in 2026
First-time buyers will pay no stamp duty on homes priced up to RM500,000 from next year under Budget 2026, saving up to RM12,500 on a RM500,000 purchase.
Source: Yahoo · July 23, 2026 at 7:47 AM · AI-assisted report
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KUALA LUMPUR, 23 JULY 2026 —
First-time buyers will pay no stamp duty on homes priced up to RM500,000 from next year under Budget 2026, saving up to RM12,500 on a RM500,000 purchase.
Market Impact
Bank Negara Malaysia has also encouraged banks to raise the maximum debt-service ratio for first-time buyers with strong income and credit records from 60% to 70%. The waiver covers both the instrument of transfer and the loan agreement, cutting upfront costs for entry-level purchases.
The twin measures target the RM300,000–RM700,000 segment where demand is strongest, particularly in transit-linked corridors such as the Kuala Lumpur–Petaling Jaya corridor, parts of Johor Bahru and the George Town–Bayan Lepas conurbation in Penang. Industry data cited in the budget documents show 42% of first-time applicants in these areas are priced out by stamp duty alone.
Financing options are expanding. Banks are promoting flexi-loans that allow borrowers to repay principal at any time without penalty, cutting interest by an estimated RM30,000 over a 30-year RM400,000 loan at 4.5% if early repayments are made. The Housing Credit Guarantee Scheme will now accept alternative income proof, letting gig workers and small-business owners qualify with two years of CCRIS or CTOS records instead of fixed salary slips.
Property analysts say the stamp-duty waiver removes the single biggest barrier for entry-level buyers in Greater Kuala Lumpur, where average prices rose 3.2% last year while household incomes tracked at 2.4%. “The RM500,000 ceiling covers 65% of new launches in the Klang Valley,” said a Maybank Kim Eng analyst. “With DSR lifted to 70% for strong profiles, approval times are shortening.”
The government will top up the BRIM 2025 fund with RM250 million to subsidise deposits and reduce interest rates by up to 0.5 percentage points for households earning below RM4,000 a month. Strata buyers in the Federal Territories will benefit from clearer sinking-fund rules: developers must place 3% of sale proceeds into a statutory fund from 2026, preventing the RM8–12 per square foot annual fees some projects imposed last year.
In transit-linked townships such as Bandar Malaysia and Bandaraya Sri Permaisuri, developers have launched 1,200-unit packages priced from RM380,000, fully covered by the new incentives. Take-up in the first quarter reached 84%, compared with 62% in the same period last year, according to property tracker Rahim & Co.
Analysts caution that hidden costs remain. Quit rent, assessment tax and maintenance fees on high-rise units can add RM250–RM400 a month in Kuala Lumpur. Bankers recommend budgeting for a 10% cash buffer above the purchase price to cover legal fees, valuation and moving expenses.
From next year, the government will launch a first-time buyer portal listing eligible projects and incentive deadlines. The portal will integrate with Bank Negara’s credit-scoring system to pre-qualify applicants within 48 hours of document upload.