Malaysian Homeownership Programmes: Stamp Duty Exemptions, Tax Relief, and More

The Malaysian government offers a range of assistance to homebuyers. Here is a guide to various forms of assistance to help you purchase your desired home.

KL Lee

11/14/20244 min read

Malaysia Tax Reliefs for House Buyers 2025
Malaysia Tax Reliefs for House Buyers 2025

Buying a home is one of the biggest financial decisions a Malaysian will make in their lifetime. Fortunately, the Malaysian government offers various assistance programmes to make home ownership more accessible, especially for first-time buyers.

These include tax reliefs, stamp duty exemptions, affordable housing schemes, and flexible financing options.

In this comprehensive guide, we'll explore all the key government programmes available to help you achieve your dream of owning a home, including the newly introduced RM7,000 tax relief starting in 2025.

1. New Tax Relief for First-Time House Buyers Starting 2025

As part of Budget 2025, the Malaysian government is proposing to introduce a new tax relief of up to RM7,000 for homes purchased from January 1, 2025, onwards.

This incentive is aimed at easing the financial burden on homebuyers, particularly first-timers.

Key Highlights:

  • Eligibility: Malaysians who purchase a residential property for the first time, from 1 January, 2025 to 31 December, 2027. The reliefs for loan interest payments can be claimed for up to three consecutive years, starting from the year of purchase.

  • Amount: Claim up to RM7,000 in tax relief for residential properties up to RM500,000, and up to RM5,000 for homes priced between RM500,00 to RM750,000.

This tax relief is a great opportunity for buyers to reduce their overall homebuying costs.

2. Stamp Duty Exemptions for First-Time Homebuyers

One of the biggest upfront costs of purchasing a property in Malaysia is the stamp duty, a tax imposed on the transfer of property ownership. Stamp duty is essential to protect the parties involved, as only a stamped document can be presented in court as evidence. However, this adds to the cost of the buying a property.

Fortunately, under the Malaysian Home Ownership Initiative (iMiliki), the government provides stamp duty exemptions for first-time homebuyers for properties up to RM500,000. This presents huge potential savings. For example, if you buy a home for RM500,000, you can save RM9,000!

Conditions:

  • Full stamp duty exemption for first-time homebuyers, for properties up to RM500,000, until the end of 2025.

3. Skim Jaminan Kredit Perumahan (SJKP)

The Skim Jaminan Kredit Perumahan (SJKP) helps individuals who do not have formal income documentation, such as freelancers, gig workers, and small business owners. The government guarantees the home loan, making it easier for these individuals to obtain financing without needing a guarantor.

SJKP offers financing of up to 110% of the property value or RM500,000, whichever is lower, covering the principal loan amount, MRTA/MRTT/CLTA/CLTT, and other related costs.

Eligibility:

  • Malaysian citizens aged 18 and above.

  • First-time home buyer

  • Property price must not exceed RM500,000.

SJKP is ideal for buyers who may have difficulty securing a traditional mortgage due to inconsistent income streams. For more details on eligibility, check out SJKP's website.

4. PR1MA Affordable Housing Scheme

The PR1MA Housing Scheme is targeted at middle-income Malaysians and offers affordable high-quality homes in key locations, including urban centres and growing townships. PR1MA homes are priced between RM100,000 and RM400,000, providing great value for first-time buyers.

Eligibility:

  • Malaysians aged 21 and above.

  • Household income between RM2,500 and RM15,000 per month.

  • Must not own more than one property.

PR1MA homes are designed to cater to Malaysians looking for affordable yet quality housing in strategic locations.

5. Rent-to-Own (RTO) Schemes

If you're not ready to commit to buying a home, the Rent-to-Own (RTO) scheme might be a good option. It allows you to rent a home for a few years before deciding whether you want to purchase it.

How it works:

  • Rent the property for a specified number of years (for example, up to 5 years).

  • After the rental period, you have the option to buy the home at a pre-agreed price.

RTO schemes are a flexible option for people who want to eventually own a home but need time to save for a down payment or improve their credit score.

Conclusion

The Malaysian government offers a wide range of programmes to help make homeownership more affordable and accessible. Whether you're looking for stamp duty exemptions, tax reliefs, or flexible financing options, these initiatives can significantly reduce the costs associated with buying a home.

If you’re a first-time homebuyer, now is the perfect time to take advantage of these government incentives.

From the newly introduced RM7,000 tax relief in 2025 to stamp duty exemptions, these benefits can make your dream of owning a home much more achievable.

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