Loan Agreement Costs: Legal Fees and Stamp Duty
What loan documentation costs: legal fees on the loan amount under the SRO 2023 scale, 0.5% stamp duty, and the charge registration fee.
Updated 21 August 2026 · Written and reviewed by Nur Nabilah Binti Mohd Aris
On a loan of RM450,000, the loan documentation legal fee is RM5,625 before service tax, and the loan agreement stamp duty is RM2,250. This is separate from the sale and purchase agreement fee because they are two different sets of documents.
Many buyers are surprised to see two legal fee lines in their cost estimate. This is not a double charge. One covers the sale and purchase agreement and the transfer, the other covers the loan documentation.
They are separate pieces of work with different parties. The sale and purchase agreement is between you and the seller. The loan documents are between you and the bank. The bank requires a charge to be registered against the title as security, and that needs its own set of documents.
How the loan documentation fee is calculated
The same scale under the Solicitors Remuneration Order 2023 applies, but it is calculated on the loan amount, not the property price. If you buy at RM500,000 with a 90% loan, the loan documentation fee is calculated on RM450,000.
| Value band | Rate |
|---|---|
| First RM500,000 | 1.25% |
| Next RM7,000,000 | 1.00% |
| Next RM7,000,000 | 0.70% |
| Next RM10,000,000 | 0.60% |
| Above RM25,000,000 | negotiable, not less than 0.50% |
Loan agreement stamp duty
Stamp duty on a loan agreement or charge is 0.5% of the loan amount. It is a flat rate, not tiered. On a loan of RM450,000, the stamp duty is RM2,250.
If you qualify for the first-time home buyer stamp duty exemption and the property price falls within the prescribed cap, the loan agreement duty may also be exempted. The conditions and cap have to be checked as at the date of your transaction.
Full estimate by property price
The table below combines both legal fees and both stamp duties, so you can see the real amount to set aside.
| 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 |
Who chooses the lawyer for the loan documentation
Most banks have their own panel of solicitors for loan documentation. Some banks allow the same lawyer to handle both the sale and purchase agreement and the loan documents, others do not. Ask the bank early, because this affects coordination and the pace of the matter.
Where one firm handles both, coordination between the seller’s discharge, stamping and registration is usually smoother because there are not two sets of solicitors waiting on each other.
Other loan-related costs
- Bank processing fee, where charged
- Valuation fee by the bank’s panel valuer
- MRTA or MLTA insurance, which can sometimes be financed into the loan
- Fire insurance, normally required throughout the loan term
- Charge registration fee at the land office
If your loan is rejected after the sale and purchase agreement is signed
This is a point to address before signing, not after. Some sale and purchase agreements contain a clause allowing termination if the loan is not approved, with the deposit refunded. Others do not. Check that clause and make sure you understand the consequence before you commit.
Frequently asked questions
Why are there two legal fee lines?
One covers the sale and purchase agreement and transfer, calculated on the property price. The other covers the loan documentation, calculated on the loan amount. Two different sets of documents with two different parties.
If I buy in cash, do I save this fee?
Yes. With no loan there is no loan documentation fee and no loan agreement stamp duty. The overall legal cost drops substantially.
Can loan stamp duty be financed into the loan?
Some banks allow certain costs to be financed, depending on the margin and the bank's policy. Ask your bank before budgeting.
Can I use my own lawyer for the loan documents?
It depends on the bank's policy. Some banks only allow solicitors on their panel. Ask the bank early so you know before appointing anyone.
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.
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