B40 Housing Scheme Stamp Duty and Fee Waivers: What Affordable Buyers Can Claim
Edited by Teh Kim Guan, ACMA, CGMA · Updated 2026-06-24
If you are a B40 or first-time buyer purchasing an affordable home in Malaysia, you are almost certainly entitled to a full stamp duty waiver on both the Memorandum of Transfer (MOT) and your loan agreement. For a RM300,000 property, that exemption alone saves you roughly RM7,000 in government charges.
This guide explains exactly which schemes trigger which waivers, what you actually need to do to claim them, and what other fee relief is available alongside stamp duty.
Why stamp duty matters for affordable housing buyers
When you buy a property in Malaysia, LHDN (Lembaga Hasil Dalam Negeri) levies stamp duty on two separate legal instruments:
- The MOT (Memorandum of Transfer): transfers registered ownership from the seller or developer to you.
- The loan agreement: the facility contract between you and your bank or financier.
At standard rates, a RM300,000 home would carry approximately RM5,000 in MOT stamp duty and RM1,500 in loan agreement stamp duty. Government waivers can reduce both to zero, which is a material saving at the point in life when cash flow is tightest.
For the full standard rate table and how the tiers are calculated, see stamp duty and legal fees when buying property in Malaysia.
The core waiver: first-time buyer exemption (up to RM500,000)
The broadest and most accessible waiver applies to any Malaysian citizen buying their first residential property priced at or below RM500,000. Budget 2026 extended this exemption until 31 December 2027 (source: Ministry of Finance Malaysia, Budget 2026 speech, October 2025).
What is exempt
- MOT stamp duty: 100% exemption on the instrument of transfer.
- Loan agreement stamp duty: 100% exemption on the housing loan or Islamic financing facility agreement.
Who qualifies
| Condition | Requirement |
|---|---|
| Citizenship | Malaysian citizen only |
| First home | Never owned residential property before, individually or jointly |
| Property type | Residential (house, apartment, condominium, flat) |
| Property price | Purchase price or market value not exceeding RM500,000 |
| SPA execution | Sale and Purchase Agreement (SPA) signed by 31 December 2027 |
| Loan type | Any conventional or Islamic housing loan from a licensed institution |
Source: LHDN, Stamp Duty (Exemption) Orders, as amended through Budget 2026.
“Never owned residential property” means exactly that: no prior ownership through purchase, gift, or inheritance, at any time. A joint ownership share in a family property counts.
How to claim it
You do not file a separate application. Your conveyancing lawyer submits the exemption claim to LHDN as part of the standard stamping process. Inform your lawyer that you are a first-time buyer before the SPA is executed, so the correct documents are prepared from the start. Keep a copy of your statutory declaration confirming first-time buyer status, as LHDN may request it.
Scheme-linked waivers: affordable housing programmes
Certain government housing programmes carry their own additional or complementary fee relief. The waivers below layer on top of the first-time buyer exemption where both apply.
PR1MA (Perumahan Rakyat 1Malaysia)
PR1MA builds and sells purpose-built affordable homes at below-market prices, typically between RM100,000 and RM400,000, targeting households with combined monthly income between RM2,500 and RM15,000.
PR1MA units sit within the RM500,000 ceiling, so buyers automatically qualify for the first-time buyer stamp duty exemption on both the MOT and loan agreement, provided they have not owned residential property before.
PR1MA also operates with a restriction on resale for 10 years from the date of the SPA, except with PR1MA’s written approval. This restriction is a condition of the below-market pricing, not a fee waiver. Buyers should note it when considering long-term plans.
To apply: register at pr1ma.my, check available projects in your target area, and ballot for units during open registration periods.
MyHome (Skim Rumah Mampu Milik Swasta)
MyHome is a KPKT scheme that provides a cash subsidy of up to RM30,000 to private developers who build affordable homes, effectively reducing the selling price to buyers. The subsidy goes to the developer, but the benefit passes through as a lower purchase price.
Because MyHome homes are priced to qualify within affordable ranges, most buyers will also fall within the RM500,000 stamp duty exemption threshold. The subsidy itself does not create a separate stamp duty waiver, but it helps buyers access the existing first-time buyer exemption by keeping prices low.
Skim Rumah Pertamaku (SRP / MyFirstHome)
SRP, administered by Cagamas Berhad, provides 100% financing for first-time buyers, eliminating the 10% down payment. Properties must be priced between RM100,000 and RM500,000. Eligible buyers must be Malaysian citizens aged 35 and below, with a monthly income not exceeding RM5,000 (individual) or RM10,000 (joint applicants).
SRP buyers purchasing within the RM500,000 ceiling qualify for the standard first-time buyer stamp duty exemption on both MOT and loan. The 100% financing removes one cash barrier; the stamp duty waiver removes another.
Housing Credit Guarantee Scheme (SJKP)
SJKP is administered by Syarikat Jaminan Kredit Perumahan Berhad and targets buyers who cannot obtain a bank loan due to informal or irregular income: gig workers, the self-employed, hawkers, and others without payslips.
Under Budget 2026, the SJKP guarantee fund was doubled to RM20 billion, with the government estimating coverage for up to 80,000 first-time buyers (source: Ministry of Finance, Budget 2026). SJKP guarantees up to 110% of the property value, covering the loan amount plus transactional costs, capped at RM500,000.
SJKP itself does not provide a stamp duty waiver. However, because most SJKP applicants are first-time buyers purchasing within the RM500,000 ceiling, they typically qualify for the first-time buyer stamp duty exemption alongside the credit guarantee.
Legal fees: what is and is not reduced
Stamp duty waivers cover government charges to LHDN. They do not cover your lawyer’s professional fees, which follow the Solicitors’ Remuneration Order 2023 (SRO 2023).
However, some B40-targeted affordable housing projects, particularly those under PR1MA and certain state housing boards (such as DBKL, Selangor’s PKNS, or Johor’s JKOR), negotiate panel lawyer arrangements where legal fees are capped or borne partly by the developer. This varies by project. Always ask your developer or housing authority whether a legal fee concession is part of the package before engaging your own lawyer.
For a breakdown of what SRO 2023 legal fees cost at each price point, see the stamp duty and legal fees guide.
Savings summary: what a B40 buyer actually pockets
The table below shows approximate stamp duty savings for a first-time Malaysian buyer using the exemption, compared with standard rates.
| Purchase price | MOT stamp duty (standard) | Loan stamp duty (standard) | Total waived | Net saving |
|---|---|---|---|---|
| RM150,000 | RM2,000 | RM450 | RM2,450 | RM2,450 |
| RM300,000 | RM5,000 | RM900 | RM5,900 | RM5,900 |
| RM400,000 | RM7,000 | RM1,200 | RM8,200 | RM8,200 |
| RM500,000 | RM9,000 | RM1,500 | RM10,500 | RM10,500 |
Note: loan stamp duty is 0.5% of the loan amount. Figures above assume a 90% loan-to-value ratio. MOT figures use cumulative standard rates under the Stamp Act 1949.
EPF Account 2 withdrawal: a related saving
B40 and first-time buyers can also use EPF (KWSP) Account 2 withdrawals to fund the down payment and, importantly, to cover stamp duty and legal fees even in cases where a partial waiver applies. This does not create a waiver but reduces out-of-pocket cash at the point of purchase. For details on how EPF Account 2 withdrawals for housing work, see the guide on EPF withdrawal for a house purchase in Malaysia.
Key takeaways
- First-time Malaysian buyers purchasing homes priced at RM500,000 or below receive a 100% exemption on both MOT stamp duty and loan agreement stamp duty, extended until 31 December 2027 under Budget 2026.
- PR1MA, MyHome, and SRP scheme purchases all fall within this exemption ceiling and are designed to be used alongside it.
- The exemption is claimed automatically through your conveyancing lawyer; no separate LHDN application is required.
- SJKP provides credit access for buyers without payslips and is not a stamp duty waiver, but most SJKP applicants qualify for the stamp duty exemption separately.
- Legal fees under SRO 2023 are separate from stamp duty and are not waived by any of these schemes at a national level, though some projects offer developer-subsidised panel lawyer arrangements.
- The exemption applies to both conventional and Islamic (takaful / Islamic financing) home loan agreements.
Frequently asked questions
Can I claim the stamp duty waiver if my spouse already owns a property? No. Both joint applicants must be first-time buyers for the exemption to apply in full. If one spouse has previously owned residential property, the exemption does not apply to joint SPA transactions. If only one spouse is first-time, that individual may buy solo, but the bank will assess the loan on that individual’s income only.
Does the waiver apply to subsale (secondary market) properties? Yes. The first-time buyer stamp duty exemption applies to both new launch (primary market) and subsale (secondary market) residential properties, as long as the purchase price or market value assessed by LHDN does not exceed RM500,000.
What happens if the property is valued higher than the purchase price by LHDN? LHDN uses the higher of purchase price or market value for the stamp duty assessment. If LHDN’s assessed market value exceeds RM500,000 even though your purchase price is below that threshold, you will lose the exemption. This is rare for genuinely affordable stock but can occur in established high-demand areas.
Is the waiver available for commercial property or shop offices? No. The first-time buyer exemption is restricted to residential property only. Commercial units, shop offices, and service apartments zoned as commercial do not qualify.
My income is informal. Can I still claim the stamp duty waiver through SJKP? Yes. The stamp duty exemption is based on citizenship, first-time buyer status, and property price, not employment type. If you qualify for a SJKP-backed loan and the property is priced at or below RM500,000, you claim the waiver in exactly the same way as any other first-time buyer.
Stamp duty rates and exemption orders are set by the federal government and may change with each Budget. Always confirm current rules with a licensed conveyancing lawyer or LHDN before executing your SPA.
Learn more about the full costs of buying property in Malaysia
Malaysia-based chartered management accountant (ACMA, CGMA) and embedded executive who has worked across finance, operations, and product roles with Malaysian companies. Every WangWise guide is checked against official Malaysian sources. How we review · About the editor
Educational content only, not financial advice. Verify current figures with official sources.