First-Time Buyer in Malaysia: Every Government Scheme You Can Stack Together

Malaysia’s first-time buyer support system is made up of several independent schemes that can be combined, and stacking them correctly can save you tens of thousands of ringgit. This guide maps out the four main pillars, shows which ones work together, and flags the conditions you must meet for each.

The Four Pillars at a Glance

Scheme	Who runs it	What it gives you	Price ceiling
Stamp Duty Exemption	LHDN / MOF	100% waiver on transfer and loan stamp duty	RM 500,000
MyDeposit	KPKT	Up to RM 30,000 deposit assistance (soft loan)	RM 500,000
HCGS	Syarikat Jaminan Kredit Perumahan (SJKP)	Bank guarantee for borrowers with no payslip	RM 500,000
EPF Account 2 Withdrawal	KWSP	Withdraw savings for down payment and upfront costs	No hard cap on property price

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Pillar 1: Stamp Duty Exemption

Stamp duty on a property purchase comes in two parts: the Memorandum of Transfer (MOT) and the loan agreement. For a first-time buyer buying a home priced up to RM 500,000, both are fully waived.

What the numbers look like without the exemption:

For a RM 450,000 property with a 90% loan (RM 405,000):

• MOT stamp duty: RM 7,500
• Loan agreement stamp duty: RM 2,025
• Total saved: RM 9,525

The exemption was introduced during the COVID-19 recovery period and has since been extended. Under Budget 2026, the government extended full stamp duty exemptions for first-time residential buyers through 31 December 2027 (source: Ministry of Finance, Budget 2026 announcement, October 2025). Both the transfer instrument and the loan agreement qualify.

Eligibility checklist:

• Malaysian citizen only
• Never previously owned any residential property, including joint ownership or gifts
• Property is residential, not commercial
• Property price does not exceed RM 500,000
• SPA signed within the exemption window (currently to 31 December 2027)

From 1 January 2026, Malaysia moved to a self-assessment stamp duty system (SDSAS). Buyers now compute their own duty, submit a Stamp Duty Return Form (BNDS), and claim the exemption directly. Your solicitor will handle this in practice, but knowing the system helps you verify no duty is charged by mistake.

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Pillar 2: MyDeposit Scheme

MyDeposit (Skim Pembiayaan Deposit Rumah Pertama) is a soft loan managed by Jabatan Perumahan Negara under KPKT. It helps first-time buyers who have the income to service a loan but cannot scrape together the 10% down payment.

How it works:

• The government advances up to RM 30,000 toward your deposit
• The assistance is structured as a soft loan, repaid over time at low or zero interest depending on the tranche
• Applications are submitted via the e-Home portal at ehome.kpkt.gov.my

Key conditions (source: KPKT / Jabatan Perumahan Negara):

• Malaysian citizen, first property purchase
• Household income: check the current ceiling on the e-Home portal as the figure is reviewed periodically (the scheme targets the M40 and B40 segments)
• Property price: RM 500,000 and below
• Property must be for own occupation, not investment

MyDeposit is not a grant, it is a loan. Factor the repayment into your total monthly commitment when you calculate your Debt Service Ratio (DSR).

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Pillar 3: Housing Credit Guarantee Scheme (HCGS)

HCGS is administered by Syarikat Jaminan Kredit Perumahan Berhad (SJKP). It is aimed specifically at Malaysians who earn income but cannot show a conventional payslip, including gig workers, freelancers, hawkers, traders, and the self-employed.

Without a payslip, banks often reject mortgage applications outright. HCGS provides a government-backed guarantee to the bank, which substantially improves the borrower’s chance of approval.

Scheme parameters (source: SJKP, 2025):

• Open to all Malaysian citizens aged 18 and above
• No minimum or maximum income requirement (income is assessed, not capped)
• Maximum guaranteed financing: RM 500,000
• Maximum tenure: 35 years
• The guarantee fee is subsidised by the government; borrowers pay a small processing fee

Under Budget 2026, the government announced it would increase the HCGS guarantee pool from RM 10 billion to RM 20 billion, targeting 80,000 first-time homebuyers (source: Ministry of Finance, Budget 2026).

Important distinction: HCGS does not give you money. It gives the bank confidence that the government stands behind your loan. You still need to demonstrate income, and the bank still decides your loan quantum.

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Pillar 4: EPF Account 2 Withdrawal

For employed Malaysians, the EPF Account 2 withdrawal is often the largest source of funds for a first purchase. It can cover the down payment and upfront costs together.

What you can withdraw (source: KWSP, 2025):

Category 1 (buying your first home):

• Down payment amount, plus up to 10% of the purchase price for stamp duty and legal fees
• The maximum is the lower of: (purchase price minus loan amount plus 10% of purchase price), or your Account 2 balance

Example:

• Property price: RM 400,000
• Loan: RM 360,000 (90% margin)
• Down payment: RM 40,000
• 10% for costs: RM 40,000
• Maximum withdrawal: RM 80,000 (subject to Account 2 balance)

Key rules:

• Applicant must be under 55 years old at the time of application
• Account 2 must have a minimum balance of RM 500 after withdrawal
• Property must be for residential use
• Submit via i-Akaun online or at any EPF counter using form KWSP 9C(AHL)
• EPF processes applications within approximately 2 to 3 weeks from receipt of complete documents

New structure note: EPF introduced a three-account structure (Account 1, Account 2, Akaun Fleksibel) in 2024. Housing withdrawals come from Account 2, not Akaun Fleksibel. Confirm your Account 2 balance in i-Akaun before planning your finances.

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How to Stack Them

The four schemes are not mutually exclusive. A typical first-time buyer buying a RM 450,000 apartment could legitimately use all four simultaneously.

Example stack for a RM 450,000 purchase:

Source	Amount	Purpose
Stamp Duty Exemption	RM 9,525 saved	No duty paid on MOT or loan
MyDeposit	Up to RM 30,000	Supplements down payment
HCGS	Guarantee (no cash)	Improves loan approval if self-employed
EPF Account 2	Up to RM 80,000	Down payment plus legal and stamp costs

The stamp duty exemption works automatically through your solicitor. MyDeposit and EPF are separate cash-in applications. HCGS is applied for through the bank when you submit your mortgage application.

Stacking sequence in practice:

1. Confirm you qualify (citizen, no prior property, price within RM 500,000)
2. Apply for MyDeposit via e-Home portal early, as allocations are limited and disbursement takes time
3. Check your EPF Account 2 balance and submit the withdrawal application after SPA signing
4. Instruct your solicitor to claim the stamp duty exemption when stamping documents
5. If you are self-employed or have irregular income, apply through a SJKP-panel bank for HCGS simultaneously with your loan application

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What Does Not Stack

• MyDeposit and PR1MA’s RUMAWIP or Rumah Selangorku: these state schemes have their own deposit assistance; confirm with the developer whether MyDeposit can be layered on top, as some developer-linked schemes preclude other government deposit facilities
• EPF withdrawal for a second property: you must have sold or disposed of your first property before using EPF Account 2 again for a second purchase (Category 1)
• HCGS and fully salaried fixed-income borrowers: HCGS is designed for non-fixed income earners; salaried borrowers with conventional payslips typically apply directly without the guarantee

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Total Upfront Cost Reduction: a Summary

For a RM 450,000 first home financed at 90% by a buyer with RM 60,000 in EPF Account 2 and MyDeposit approval:

Cost item	Without schemes	With schemes
MOT stamp duty	RM 7,500	RM 0
Loan stamp duty	RM 2,025	RM 0
Down payment (10%)	RM 45,000 cash	RM 15,000 cash (EPF RM 45,000 + MyDeposit RM 15,000)
Legal fees (est.)	RM 5,000	RM 0 to 5,000 (EPF 10% covers this)
Estimated cash outlay	RM 59,525	RM 15,000 to 20,000

The difference is material. Schemes do not eliminate the purchase cost, but they shift a large portion from cash savings to EPF savings and government soft loans.

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Key Takeaways

• All four schemes apply to properties priced at RM 500,000 and below, making the ceiling a natural filter for first-time buyers
• The stamp duty exemption is automatic through your solicitor and runs to 31 December 2027
• EPF Account 2 can cover both the down payment and upfront costs in a single withdrawal; check your balance in i-Akaun first
• MyDeposit is a soft loan, not a grant; factor the repayment into your DSR calculation
• HCGS exists specifically for gig workers and self-employed buyers who are routinely turned away by banks; if that is your situation, apply via an SJKP-panel bank
• Apply for MyDeposit and EPF withdrawal early, as both have processing times of several weeks

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Frequently Asked Questions

Can I use MyDeposit and EPF Account 2 for the same property?

Yes. MyDeposit supplements the down payment as a soft loan, while EPF Account 2 withdrawal provides actual savings you have accumulated. Both can be applied toward the same purchase. Confirm the combined amounts do not exceed the down payment and permitted cost amount, as EPF will not disburse more than the eligible formula.

Does the HCGS guarantee cover the full loan amount?

HCGS provides a guarantee to the bank, not a top-up of your loan. The guaranteed amount covers the bank’s risk on your financing up to RM 500,000. You still borrow from the bank and make normal monthly repayments. The guarantee simply makes the bank more willing to approve the loan.

What happens to the stamp duty exemption if the property price is slightly above RM 500,000?

The exemption does not apply at all if the purchase price exceeds RM 500,000, even by one ringgit. There is no partial relief for amounts just above the threshold. If the price is negotiable, bringing it to RM 500,000 or below captures the full exemption.

I already used EPF for my first home years ago. Can I use it for a second property?

You can use EPF Account 2 for a second property purchase only after you have sold or disposed of the first property. The same rule applies to MyDeposit. Both schemes are reserved for properties you will occupy, not investment purchases.

How long does MyDeposit take to disburse?

Processing times vary and are subject to the annual allocation being available. Apply as early as possible, preferably before or immediately after signing the booking form. Visit ehome.kpkt.gov.my for the current application status and cycle.

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For a deeper look at state-level schemes such as Rumah Selangorku or RUMAWIP, see our guide to government housing schemes by state. If you are calculating total purchase costs before committing, read the full cost of buying property in Malaysia.