Key takeaways
- A deposit credited towards the price is part of your equity contribution, not an extra charge.
- The 90% and 80% margins below are hypothetical, not lending entitlements.
- Transfer duty, loan duty and the two legal-fee scopes are separate.
- First-home relief requires eligibility checks; service apartments and SOHO have a specific statutory/template conflict.
- A calculated subtotal is not a complete move-in budget.
1. Start with three layers of cash
“How much should I have saved?” is a useful question. “What do I need to pay, and when?” is the better starting point.
Purchase equity is the price not covered by approved purchase funding. A deposit already credited to the price sits here.
Transaction and financing costs include the applicable legal work, duties and charges particular to the purchase and loan.
Move-in and ownership reserves cover handover payments, protection, repairs, furnishing and continuing commitments.
1. Start with three layers of cash
I suggest identifying the purpose, payer and timing of each amount before deciding whether savings are sufficient. A headline downpayment percentage leaves too much out.
| Treatment | Budget approach |
|---|---|
| Normally required contribution or applicable duty | Work from the contract and relevant rules |
| Potentially financed | Check the approved purchase portion and financed extras separately |
| Developer-paid | Deduct only a documented package's specified coverage |
| Potential legal or scheme exemption | Show a separate branch after eligibility and application checks |
| Optional or case-specific | Use a quote and the buyer's actual requirements |
Budget approach
- Normally required contribution or applicable duty
- Work from the contract and relevant rules
- Potentially financed
- Check the approved purchase portion and financed extras separately
- Developer-paid
- Deduct only a documented package's specified coverage
- Potential legal or scheme exemption
- Show a separate branch after eligibility and application checks
- Optional or case-specific
- Use a quote and the buyer's actual requirements
2. Avoid counting the same deposit twice
An earnest deposit credited to the purchase price forms part of your own contribution. Paying that contribution in stages does not make the first instalment an additional cost.
For a new launch, establish the applicable sale structure. HDA-regulated developer sales restrict collection before the prescribed SPA; a “booking” label does not establish permission to collect. Have the solicitor check payment and stakeholder arrangements.KPKT FAQ
For a subsale, earnest money and the balance deposit follow the written arrangement. Check who holds the money, crediting, financing conditions and refund or forfeiture terms. There is no universal booking percentage here, and no blanket promise of a refund if financing fails.
3. Work from approved funding, not an assumed percentage
A lender's maximum advertised margin is not your approved purchase funding. A valuation shortfall, lower approval or costs kept outside the loan can change the cash gap.
The illustrations finance only the assumed portion of the purchase price. They add no insurance or fee financing. Your offer must distinguish those components before you plan payments.
SJKP and the First Home Mortgage Guarantee Programme may provide a route for eligible buyers through participating lenders. They require relevant eligibility and bank assessment; a guarantee is not a grant or an assurance of zero cash. Neither programme is assumed approved below.SJKP lender disclosure, Cagamas programme terms
4. Separate legal work and the two duties
SPA/transfer work and financing documents have separate fee bases. Under SRO 2023, general Table A starts at 1.25% of the first RM500,000, minimum RM500, then 1% of the next RM7m. HDA Table B differs. All examples use non-HDA resale and assume no discount.SRO 2023
Itemise disbursements, taxes and applicable SST separately. Do not add a second full fee for normal transfer work already covered by the sale scope; later title work can be different.
Transfer/MOT duty uses the higher of consideration and market value. The general citizen bands are 1% on the first RM100k, 2% on the next RM400k, 3% on the next RM500k and 4% above RM1m, assessed per RM100 or part within each band.HASiL guideline
Principal loan/security duty uses the financing amount: RM5 per RM1,000 or part. It is not charged on the purchase price, or silently repeated on every ancillary document.Stamp Act 1949
“Legal fees covered” needs a written scope: sale or loan work, taxes, disbursements, eligible unit and buyer, and package validity. It does not erase all purchase costs.
5. First-home relief is conditional
The relevant orders, as amended, provide a qualifying SPA window of 1 January 2021 through 31 December 2027. Conditions include Malaysian individual citizenship, one qualifying dwelling and no previous residential ownership, including inherited, gifted or jointly held homes. Transfer relief uses market value up to RM500,000; current declarations also address purchase price and previous exemption approval. Loan relief has its own purchaser and lender conditions.
These exemptions concern applicable transfer and loan duties, not every transaction charge. An RM800k home does not receive relief on its first RM500k under these orders.Original orders, transfer amendment, loan amendment, transfer declaration, loan declaration
Qualifying first-home loan interest may also receive income-tax deduction treatment. That is not cash at signing and is not deducted from this upfront budget.HASiL Public Ruling 7/2025, section 6.16
6. Why service apartments and SOHO need a specific check
“Serviced residence” is a marketing description, not confirmation of a unit's exemption eligibility.
The Finance Act 2025 residential definition includes service apartments and SOHO used solely as dwellings. Current LHDN declarations nevertheless exclude SOHO, SOFO, SOVO and service apartments. Bar Circular 128/2026, dated 16 April 2026, identifies this conflict, explains that written law takes precedence over a template and states that clarification/amendment will be sought from LHDN.
This article promises neither eligibility nor categorical exclusion. Obtain current confirmation from your solicitor/LHDN for the actual unit before relying on relief; declarations must be truthful. No later formal resolution was verified here, which does not establish that none exists. The examples assume a simple qualifying house and make no service-apartment/SOHO decision.Bar Circular 128/2026, Finance Act 2025 government text reproduction, section 26
7. Three prices, two funding assumptions
ILLUSTRATION ONLY — not a quote or a lending decision.
Shared assumptions: adult Malaysian citizen, sole purchaser of a first owner-occupied ordinary house; completed non-HDA resale, title ready for transfer; hypothetical SPA executed on 15 October 2026. Market value, price and the sale-fee basis are assumed equal. Funding covers only the hypothetical 90%/80% price portion, with no financed extras. Assume a conventional secured housing loan repayable over an ascertainable term, counting one principal instrument only. No discount or developer package is assumed. Scale fees exclude SST; all other exclusions follow the tables.
The conditional branch additionally assumes no prior individual/joint ownership, inheritance or gift, no previous approval under this exemption, only one qualifying unit, qualifying price/value, truthful current declarations and proper application/approval. The SPA purchaser borrows from an eligible licensed bank. These are illustration assumptions, not a finding about your eligibility.
RM300,000 property
RM300,000 property
ILLUSTRATION ONLY. Non-HDA resale house; price and assumed market value RM300,000; hypothetical 90%/80% purchase funding. No package, discount or financed extras; both reliefs conditional on all checks above. Exclusions appear in the final row and list.
The calculated subtotal is NOT the total move-in budget.
| Item · RM | A: hypothetical 90% | B: hypothetical 80% |
|---|---|---|
| Purchase price | 300,000.00 | 300,000.00 |
| Assumed purchase-price margin | 90% | 80% |
| Assumed loan amount | 270,000.00 | 240,000.00 |
| A · Buyer equity / deposit (credited deposit included) | 30,000.00 | 60,000.00 |
| B · Transfer / MOT stamp duty | 5,000.00 | 5,000.00 |
| B · SPA / transfer scale fee, before SST | 3,750.00 | 3,750.00 |
| B · Calculated transfer costs | 8,750.00 | 8,750.00 |
| C · Principal loan-document scale fee, before SST | 3,375.00 | 3,000.00 |
| C · Principal loan-document stamp duty | 1,350.00 | 1,200.00 |
| C · Calculated financing costs | 4,725.00 | 4,200.00 |
| Known subtotal: A + B + C, no exemption deducted | 43,475.00 | 72,950.00 |
| E · Conditional reduction: transfer + principal loan duties only | 6,350.00 | 6,200.00 |
| E · Conditional subtotal: both first-home exemptions confirmed | 37,125.00 | 66,750.00 |
| D · Not included / requires quotation | SST and all items in the exclusions list | SST and all items in the exclusions list |
A: hypothetical 90%
- Purchase price
- 300,000.00
- Assumed purchase-price margin
- 90%
- Assumed loan amount
- 270,000.00
- A · Buyer equity / deposit (credited deposit included)
- 30,000.00
- B · Transfer / MOT stamp duty
- 5,000.00
- B · SPA / transfer scale fee, before SST
- 3,750.00
- B · Calculated transfer costs
- 8,750.00
- C · Principal loan-document scale fee, before SST
- 3,375.00
- C · Principal loan-document stamp duty
- 1,350.00
- C · Calculated financing costs
- 4,725.00
- Known subtotal: A + B + C, no exemption deducted
- 43,475.00
- E · Conditional reduction: transfer + principal loan duties only
- 6,350.00
- E · Conditional subtotal: both first-home exemptions confirmed
- 37,125.00
- D · Not included / requires quotation
- SST and all items in the exclusions list
B: hypothetical 80%
- Purchase price
- 300,000.00
- Assumed purchase-price margin
- 80%
- Assumed loan amount
- 240,000.00
- A · Buyer equity / deposit (credited deposit included)
- 60,000.00
- B · Transfer / MOT stamp duty
- 5,000.00
- B · SPA / transfer scale fee, before SST
- 3,750.00
- B · Calculated transfer costs
- 8,750.00
- C · Principal loan-document scale fee, before SST
- 3,000.00
- C · Principal loan-document stamp duty
- 1,200.00
- C · Calculated financing costs
- 4,200.00
- Known subtotal: A + B + C, no exemption deducted
- 72,950.00
- E · Conditional reduction: transfer + principal loan duties only
- 6,200.00
- E · Conditional subtotal: both first-home exemptions confirmed
- 66,750.00
- D · Not included / requires quotation
- SST and all items in the exclusions list
RM500,000 property
RM500,000 property
ILLUSTRATION ONLY. Non-HDA resale house; price and assumed market value RM500,000; hypothetical 90%/80% purchase funding. No package, discount or financed extras. At the relief ceiling, price alone cannot settle value or eligibility. Exclusions appear in the final row and list.
The calculated subtotal is NOT the total move-in budget.
| Item · RM | A: hypothetical 90% | B: hypothetical 80% |
|---|---|---|
| Purchase price | 500,000.00 | 500,000.00 |
| Assumed purchase-price margin | 90% | 80% |
| Assumed loan amount | 450,000.00 | 400,000.00 |
| A · Buyer equity / deposit (credited deposit included) | 50,000.00 | 100,000.00 |
| B · Transfer / MOT stamp duty | 9,000.00 | 9,000.00 |
| B · SPA / transfer scale fee, before SST | 6,250.00 | 6,250.00 |
| B · Calculated transfer costs | 15,250.00 | 15,250.00 |
| C · Principal loan-document scale fee, before SST | 5,625.00 | 5,000.00 |
| C · Principal loan-document stamp duty | 2,250.00 | 2,000.00 |
| C · Calculated financing costs | 7,875.00 | 7,000.00 |
| Known subtotal: A + B + C, no exemption deducted | 73,125.00 | 122,250.00 |
| E · Conditional reduction: transfer + principal loan duties only | 11,250.00 | 11,000.00 |
| E · Conditional subtotal: both first-home exemptions confirmed | 61,875.00 | 111,250.00 |
| D · Not included / requires quotation | SST and all items in the exclusions list | SST and all items in the exclusions list |
A: hypothetical 90%
- Purchase price
- 500,000.00
- Assumed purchase-price margin
- 90%
- Assumed loan amount
- 450,000.00
- A · Buyer equity / deposit (credited deposit included)
- 50,000.00
- B · Transfer / MOT stamp duty
- 9,000.00
- B · SPA / transfer scale fee, before SST
- 6,250.00
- B · Calculated transfer costs
- 15,250.00
- C · Principal loan-document scale fee, before SST
- 5,625.00
- C · Principal loan-document stamp duty
- 2,250.00
- C · Calculated financing costs
- 7,875.00
- Known subtotal: A + B + C, no exemption deducted
- 73,125.00
- E · Conditional reduction: transfer + principal loan duties only
- 11,250.00
- E · Conditional subtotal: both first-home exemptions confirmed
- 61,875.00
- D · Not included / requires quotation
- SST and all items in the exclusions list
B: hypothetical 80%
- Purchase price
- 500,000.00
- Assumed purchase-price margin
- 80%
- Assumed loan amount
- 400,000.00
- A · Buyer equity / deposit (credited deposit included)
- 100,000.00
- B · Transfer / MOT stamp duty
- 9,000.00
- B · SPA / transfer scale fee, before SST
- 6,250.00
- B · Calculated transfer costs
- 15,250.00
- C · Principal loan-document scale fee, before SST
- 5,000.00
- C · Principal loan-document stamp duty
- 2,000.00
- C · Calculated financing costs
- 7,000.00
- Known subtotal: A + B + C, no exemption deducted
- 122,250.00
- E · Conditional reduction: transfer + principal loan duties only
- 11,000.00
- E · Conditional subtotal: both first-home exemptions confirmed
- 111,250.00
- D · Not included / requires quotation
- SST and all items in the exclusions list
RM800,000 property
RM800,000 property
ILLUSTRATION ONLY. Non-HDA resale house; price and assumed market value RM800,000; hypothetical 90%/80% purchase funding. No package, discount or financed extras. No branch under these ≤RM500k first-home orders. Exclusions appear in the final row and list.
The calculated subtotal is NOT the total move-in budget.
| Item · RM | A: hypothetical 90% | B: hypothetical 80% |
|---|---|---|
| Purchase price | 800,000.00 | 800,000.00 |
| Assumed purchase-price margin | 90% | 80% |
| Assumed loan amount | 720,000.00 | 640,000.00 |
| A · Buyer equity / deposit (credited deposit included) | 80,000.00 | 160,000.00 |
| B · Transfer / MOT stamp duty | 18,000.00 | 18,000.00 |
| B · SPA / transfer scale fee, before SST | 9,250.00 | 9,250.00 |
| B · Calculated transfer costs | 27,250.00 | 27,250.00 |
| C · Principal loan-document scale fee, before SST | 8,450.00 | 7,650.00 |
| C · Principal loan-document stamp duty | 3,600.00 | 3,200.00 |
| C · Calculated financing costs | 12,050.00 | 10,850.00 |
| Known subtotal: A + B + C, no exemption deducted | 119,300.00 | 198,100.00 |
| E · Conditional reduction: transfer + principal loan duties only | Not applicable to the ≤RM500k relief analysed here | Not applicable to the ≤RM500k relief analysed here |
| E · Conditional subtotal: both first-home exemptions confirmed | No exemption branch | No exemption branch |
| D · Not included / requires quotation | SST and all items in the exclusions list | SST and all items in the exclusions list |
A: hypothetical 90%
- Purchase price
- 800,000.00
- Assumed purchase-price margin
- 90%
- Assumed loan amount
- 720,000.00
- A · Buyer equity / deposit (credited deposit included)
- 80,000.00
- B · Transfer / MOT stamp duty
- 18,000.00
- B · SPA / transfer scale fee, before SST
- 9,250.00
- B · Calculated transfer costs
- 27,250.00
- C · Principal loan-document scale fee, before SST
- 8,450.00
- C · Principal loan-document stamp duty
- 3,600.00
- C · Calculated financing costs
- 12,050.00
- Known subtotal: A + B + C, no exemption deducted
- 119,300.00
- E · Conditional reduction: transfer + principal loan duties only
- Not applicable to the ≤RM500k relief analysed here
- E · Conditional subtotal: both first-home exemptions confirmed
- No exemption branch
- D · Not included / requires quotation
- SST and all items in the exclusions list
B: hypothetical 80%
- Purchase price
- 800,000.00
- Assumed purchase-price margin
- 80%
- Assumed loan amount
- 640,000.00
- A · Buyer equity / deposit (credited deposit included)
- 160,000.00
- B · Transfer / MOT stamp duty
- 18,000.00
- B · SPA / transfer scale fee, before SST
- 9,250.00
- B · Calculated transfer costs
- 27,250.00
- C · Principal loan-document scale fee, before SST
- 7,650.00
- C · Principal loan-document stamp duty
- 3,200.00
- C · Calculated financing costs
- 10,850.00
- Known subtotal: A + B + C, no exemption deducted
- 198,100.00
- E · Conditional reduction: transfer + principal loan duties only
- Not applicable to the ≤RM500k relief analysed here
- E · Conditional subtotal: both first-home exemptions confirmed
- No exemption branch
- D · Not included / requires quotation
- SST and all items in the exclusions list
For RM800k, “not applicable” refers only to the specific ≤RM500,000 first-home stamp-duty exemptions analysed here (P.U.(A)53/2021 and 54/2021, amended by 448/2025 and 449/2025). It is not a conclusion about every other possible relief or scheme.
All amounts are RM, shown to two decimal places. These examples happen to use whole statutory units; the calculation still respects the RM100 transfer and RM1,000 loan units, including part units.
B and C are grouped components already included in A+B+C: do not add them again. The exemption result is an alternative to the baseline, not another payment. No package has been silently deducted.
Not included / requires quotation
Applicable SST; valuation; registration, searches, state consent and other disbursements; ancillary/additional financing-document legal fees and duties; MRTA/MLTA/MRTT/MLTT, fire or other cover; bank/developer-specific charges; later title work; maintenance/sinking-fund advances; repairs, renovation, furniture/appliances, moving and utility deposits; ongoing repayments, taxes and personal contingency.
Not included does not mean zero. Valuation depends on lender requirements and a current quote; no unverified historical scale is used. None of these assumed prices is a current price for Davis's projects.
8. Reserve cash around handover
Whether mortgage protection is required, optional or bundled depends on the financing product and lender. Distinguish life/loan protection from property fire cover, and an upfront premium from a financed one. Financed protection is not free.Maybank disclosure, RHB disclosure
For strata property, check the actual handover and management notice for advances, periods and calculation basis. MBJB guidance describes a sinking contribution linked to service charges; it does not establish one advance-payment schedule for every project. Keep maintenance and sinking-fund amounts distinct.MBJB COB guidance
Renovation and furnishing are a practical reserve, not statutory transaction costs. A bare unit, a partly furnished home and a fully furnished home can need very different work. An owner-occupied setup may differ from a rental setup. Inspect the property, check what is included and obtain itemised quotes rather than apply a universal percentage.
Finally, align savings with signing, completion/transfer, handover, moving and ongoing repayments. A sufficient-looking total does not guarantee cash will be available at each deadline.
9. Eight questions before signing
- What is the actual property type, title stage and sale structure?
- Who holds the deposit, how is it credited, and what are the refund/forfeiture and financing terms?
- How much purchase funding is approved, and is there a valuation gap?
- Which sale and loan fee schedules apply, and which taxes/disbursements are outside the quote?
- How are the two duties assessed, and have my relief eligibility and applications been confirmed?
- Exactly what does the package cover, for which buyer/unit and period?
- Are protection, valuation, handover advances and other charges supported by current documents and quotes?
- When is each payment due, and what remains for moving in and monthly commitments?
Those answers turn a headline percentage into a payment plan you can actually use.
Sources and verification
Rules checked through 2 October 2026. Inline links identify sources used. Obtain current, case-specific confirmation from the solicitor, LHDN, lender or relevant authority. This is a budgeting explanation, not a bank quotation or formal financial/legal advice. Source dates, assumptions and calculation checks are recorded in the accompanying internal review.
Related project
Work through the budget with Davis
The lender decides financing, and the solicitor/LHDN confirms applicable documents and tax treatment. This conversation does not replace their formal quotations.
