How to Buy Property in Malaysia 2026

Before browsing properties, know what you can afford. The rule of thumb: your monthly loan instalment should not exceed 30-40% of your gross salary (this is your DSR — Debt Service Ratio). Banks typically approve loans up to 60% DSR, but 30-40% is healthier.

You need 15-18% of the property price upfront: 10% down payment (SPA signing), 3-5% legal fees + stamp duty, 1-2% valuation + miscellaneous. First-time buyers under RM500K get stamp duty exemption (until Dec 2027).

EPF Account 2 can be used for property down payment. You need minimum RM500 in Account 2. The amount you can withdraw depends on the property price minus your loan amount. Apply through i-Akaun (EPF online portal) after signing the SPA.

New launch: buy from developer, under construction (2-4 years to completion), lower entry price, modern design, developer warranty. Subsale: buy from owner, immediate move-in, can inspect actual unit, but may need renovation. Both have pros and cons.

Location drives 80% of property value. Check: distance to workplace, public transport, schools, hospitals, future infrastructure. For new launches, research the developer — check APDL license, blacklist status, and completed project quality.

Before committing, check what similar properties in the area actually sell for. Don't rely on asking prices — check real transaction data from NAPIC. Compare the developer's price with recent subsale prices in the same area.

Before signing anything, get a loan pre-approval from your bank. This tells you exactly how much you can borrow. Apply to 2-3 banks for the best rate. Key documents: 3 months payslip, 6 months bank statements, EPF statement, IC copy, offer letter.

For new launches: pay booking fee (RM1,000-5,000), then 10% within 14 days of SPA signing. For subsale: sign offer letter with 2-3% earnest deposit, then full 10% on SPA. The booking fee is usually deducted from the 10% down payment.

Appoint a lawyer to review and sign the SPA. For new launches, the SPA follows Schedule G (landed) or Schedule H (strata) format under HDA. Key clauses to check: completion date, LAD rate (10% p.a.), defect liability period (24 months). Stamp duty and MOT will be handled by your lawyer.

For subsale: keys within 3 months of SPA. For new launch: 36 months (landed) or 48 months (strata) from SPA date. On vacant possession, inspect for defects within the 24-month Defect Liability Period. Report all defects in writing to the developer.