First-Time Home Buyer Guide
What is different for a first-time buyer: the stamp duty exemption, sequencing your funds, and the mistakes that happen most often.
Updated 21 August 2026 · Written and reviewed by Nur Nabilah Binti Mohd Aris
The biggest difference for a first-time buyer is the stamp duty exemption, which can cut the upfront cost substantially. It is not automatic: it has to be claimed and is subject to a value cap and eligibility conditions in force on the date of your transaction.
Buying a first home means facing terms, documents and dates that are all new. This page focuses on what actually differs for you rather than repeating the whole process.
The first-time buyer stamp duty exemption
This is the component that saves the most money. Transfer stamp duty and loan agreement stamp duty may be exempted for an eligible first-time buyer, up to a prescribed value cap. On a property at RM500,000 that is a large difference in the cash you need to have ready.
The key point: it has to be claimed, and the conditions can change. Do not budget on the exemption until your eligibility is confirmed.
Cost comparison with and without the exemption
| Property price | Legal fees | Stamp duty | Estimated total |
|---|---|---|---|
| RM250,000 | RM6,413 | RM5,125 | RM13,538 |
| RM500,000 | RM12,825 | RM11,250 | RM26,075 |
| RM750,000 | RM18,090 | RM19,875 | RM39,965 |
| RM1,000,000 | RM23,220 | RM28,500 | RM53,720 |
| RM1,500,000 | RM33,480 | RM50,750 | RM86,230 |
Sequencing your funds
- Deposit. Normally 10% of the purchase price, inclusive of anything already paid to the agent.
- Legal fees and stamp duty. These have to be set aside separately from the deposit.
- EPF Account 2 withdrawal. Usable but it takes time. Start early.
- Costs after the keys. Utility deposits, furniture, renovation, maintenance charges.
The most common mistakes
- Paying a large deposit to the seller or agent before a title search is done
- Treating loan pre-approval as if the loan is already approved
- Budgeting only for the deposit and leaving out legal fees and stamp duty
- Opening new credit facilities while the loan application is being processed
- Signing a booking form without reading the cancellation terms
- Relying on the exemption without confirming eligibility
Buying from a developer or buying subsale
Buying from a developer and buying subsale are two different processes. A developer purchase involves a regulated standard agreement and staged payments tied to construction progress. A subsale involves an existing title, with a history and possibly a charge or caveat that has to be resolved.
What to check before signing
- The name on the title matches the seller’s name
- No caveat or restriction in interest blocking the transfer
- Any existing charge and how it will be discharged
- Quit rent and assessment are not in arrears
- For strata, that maintenance charges are not in arrears
Frequently asked questions
Do I count as a first-time buyer if I inherited a property?
Eligibility depends on the conditions in force and the definition that applies. Confirm your position before budgeting on the exemption.
Can I use EPF to pay legal fees?
An EPF Account 2 withdrawal for a house purchase has its own conditions of use. Check with EPF what is permitted in your case and start the application early.
How much cash do I need ready?
Besides the deposit you need legal fees, any stamp duty not exempted, registration fees and disbursements. Our calculator gives an estimate for your property price.
Does loan pre-approval mean I will definitely get the loan?
No. Pre-approval is based on information that has not been fully verified. Actual approval depends on the valuation and full assessment.
Ready to start your property matter?
An initial consultation with no obligation. Tell us about your matter and we will explain what is involved and what it is likely to cost.
No. 4, Jalan Setia Impian U13/3D, Setia Impian 3, Seksyen U13, Setia Alam, 40170 Shah Alam, Selangor
014-9723468 · 014-4004293 · Monday to Friday, 9:00am to 6:00pm