What is the minimum deposit for first-time home buyers in Malaysia?

For your first property, you typically need 10% down payment. Under the My First Home Scheme, first-time buyers earning below RM5,000/month can get 100% financing (zero down payment) for properties below RM500,000.

Can foreigners buy property in Malaysia?

Yes. Foreigners can purchase most types of property above the state-set minimum price threshold (typically RM1 million for standard properties, though this varies by state).

What is RPGT (Real Property Gains Tax)?

RPGT is a tax on profits from selling property. For Malaysian citizens, disposal within 3 years: 30% tax; year 4: 20%; year 5: 15%; after 5 years: 0%. First-time owner-occupier principal residence is exempt.

Should I use a property agent for my first purchase?

You don't need an agent to buy new launches directly from developers — and through NewProjek you get 2% cashback instead. For subsale properties, an agent can help you navigate negotiation and paperwork.

How to Buy Property Malaysia First Time 2026 — Complete Guide

Buying your first property in Malaysia is an exciting but complex process. This comprehensive guide walks you through everything — from government assistance programs to legal fees, from choosing a project to getting your keys.

Step 1: Understand Your Budget

Before browsing properties, calculate what you can actually afford.

Rule of thumb: Your monthly mortgage should not exceed 30%–35% of your gross income.

Typical loan structure:

Down payment: 10% of property price

Loan amount: up to 90% for first property (up to 95% under government schemes)

Loan tenure: up to 35 years or until age 70 (whichever is earlier)

Step 2: Check Your Eligibility for Government Assistance

Malaysia offers several first-time buyer programs:

PR1MA (Perbadanan PR1MA Malaysia) — Affordable homes for Malaysians earning RM2,500–RM15,000/month in urban areas.

MyHome — Government subsidises RM30,000–RM50,000 for developers who build affordable homes. Benefits passed to buyers as discounts.

Fund for Affordable Homes (BNM) — Bank Negara financing for buyers earning below RM2,300/month. Interest rate 3.5% below market rate.

My First Home Scheme — 100% financing (no down payment) for first-time buyers earning below RM5,000/month for properties below RM500,000.

Step 3: Get Pre-Approved for a Loan

Before viewing properties, get a Loan Pre-Approval Letter (also called Letter of Offer) from your bank. This tells you exactly how much you can borrow and shows developers you're a serious buyer.

Documents typically required:

IC (Identity Card)

Last 3 months payslips

Last 3 months bank statements

Last 2 years tax returns (or EA forms)

EPF statement

Step 4: Budget for Additional Costs

Beyond the purchase price, budget for:

Legal fees (SPA): 0.5%–1% of purchase price

Loan agreement fees: 0.5%–1% of loan amount

Stamp duty on SPA: 1%–3% of purchase price (graduated)

Stamp duty on loan: 0.5% of loan amount

Valuation fee: RM500–RM2,000

MRTA/MLTA insurance: 1%–3% of loan amount

First-time buyers enjoy stamp duty exemptions on properties below RM500,000 (exemption on first RM500,000).

Step 5: Browse and Select Your Project

Use NewProjek to browse new launches in your budget and preferred location. Consider:

Location vs price trade-off

Developer track record

Completion timeline

Nearby amenities (schools, LRT, hospitals)

Property type (condo vs landed)

Step 6: Book Your Unit

Pay the booking fee (typically RM1,000–RM10,000). This is refundable if your loan is rejected.

Step 7: Apply for Your Loan

Apply to at least 3 banks to compare rates. Typical home loan rates in Malaysia: BFR minus 1%–2%. Compare processing fees, lock-in periods and flexibility.

Step 8: Sign the SPA

Your conveyancing lawyer handles SPA preparation and execution. Key things to review:

Property description and unit number

Purchase price and payment schedule

Defects liability clause

Estimated vacant possession date

Liquidated damages (LAD) provisions for late delivery

Step 9: Monitor Construction Progress

Track construction via developer updates. Banks release progress payments tied to construction milestones. Keep your loan account in order.

Step 10: Collect Your Keys

During vacant possession:

Conduct a thorough defects inspection

Document all defects in writing

Allow developer 30 days to rectify before escalating

Congratulations — you're a property owner!

NewProjek's 2% Cashback for First-Time Buyers

Register your interest through NewProjek and you're eligible for our 2% cashback program. On a RM400,000 first home, that's RM8,000 back in your pocket — helping offset legal fees and moving costs.

First-Time Property Buyer Guide Malaysia — Everything You Need to Know