Here’s How Much You Need To Buy A House In M’sia, Including Extra Costs No One Talks About

Published for LBS Bina
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Do you think you can afford to buy a house?

Owning a property is a big milestone — and it often comes with a hefty price tag. That’s why it’s important to know your budget.

Together with property developer LBS Bina Group (LBS), we take a look at all the costs of buying a house in Malaysia, including extra fees you may not be aware of.

First of all, what’s your budget?

Take a look at roughly how much you’ll need to buy a house in this range.

LET'S GO
RM350,000
RM300,000 - RM400,000
To start off, there are a few upfront costs that every homebuyer should know:
Booking fee
RM0-RM3,500
0-1% of property price
Usually, developers request for a nominal booking fee, that may or may not be refundable.
Downpayment
RM35,000
10% of property price
Certain developers may provide a 10% rebate, which means you won’t need to pay this upfront.
Monthly Instalments
RM1,490 / month
This amount is assuming you get a 90% loan of RM315,000 for 35 years, at a 4.5% interest rate. Experts recommend that your monthly instalments don’t exceed one-third of your income.
Calculate your home loan eligibility here.
Sale & Purchase Agreement (SPA)
RM3,510
Total legal fees + stamp duty
RM3,500
1% for first RM500k (legal fees)
RM0
0.8% for subsequent RM500k (legal fees)
RM10
Stamp duty
SPA is a legally binding agreement between a seller/developer and a homebuyer. You’ll have to pay legal fees and a nominal RM10 stamp duty fee for this.
Memorandum of Transfer (MOT)
RM6,000
Total stamp duty
RM1,000
1% for first RM100k
RM5,000
2% for RM100k-RM500k
RM0
3% for RM500k-RM1 million
MOT is a document that the homebuyer signs to transfer ownership from the seller/developer to the homebuyer. You’ll have to pay stamp duty for this.
Loan agreement
RM4,725
Total legal fees + stamp duty
RM3,150
1% for first RM500k (legal fees)
RM0
0.8% for subsequent RM500k (legal fees)
RM1,575
0.5% of loan (stamp duty)
The loan agreement is a document signed between the homebuyer and the bank, stating all the terms of the loan. You’ll have to pay legal fees and stamp duty for this.
Overall, you could be looking at upfront costs of RM49,235 + RM1,490/month for a RM350,000 home
(not including booking fee)
The good news is that the government is offering first-time homebuyers stamp duty exemptions for homes under RM500,000. LBS is also offering a 10% rebate, which means you can save on your downpayment, as well as enjoy free legal fees! :O
These combined could bring the upfront cost down to RM0 + RM1,490/month for a RM350,000 home
Find out what home you can afford
RM350,000
RM550,000
RM5.5k salary RM450,000
Go back up to try a different house budget
Next, here are some extra costs no one really tells you about:
Thankfully, LBS understands all the extra costs of buying a home, and wants to lessen the burden for you.
Here’s how:

With the LBS Fabulous Extra 2022-23 campaign, homeowners can look forward to all kinds of extra incentives and RM1,500,000 worth of prizes to be won.

Incentives:
Low booking fees
Free legal fees
Loyalty reward
Flexi payment scheme
Zero exit fees
Furniture package
*Terms and conditions apply.
prizes to be won
FIND OUT MORE
Want to take a look at beautiful LBS homes?
Head over to their virtual property fair today!
BRING ME THERE