Question 1

How do I calculate my monthly home loan repayment in Malaysia?

Accepted Answer

Monthly home loan repayment in Malaysia is calculated using the reducing balance method: Monthly Repayment = Loan Amount × (Monthly Rate × (1 + Monthly Rate)^n) / ((1 + Monthly Rate)^n - 1), where n is the total number of months and Monthly Rate is the annual interest rate divided by 12. For example, a RM 720,000 loan at 4% per annum over 30 years gives a monthly repayment of approximately RM 3,437. Use the free AskHenry property calculator at askhenry.site/calculator.php to compute this instantly.

Question 2

How much is stamp duty for property in Malaysia in 2026?

Accepted Answer

Malaysia property stamp duty (MOT) in 2026: Malaysian citizens and permanent residents pay 1% on the first RM 100,000, 2% on RM 100,001 to RM 500,000, 3% on RM 500,001 to RM 1,000,000, and 4% above RM 1,000,000. First-time citizen home buyers purchasing below RM 500,000 are fully exempt until December 2027. Foreign buyers (non-citizens and foreign-owned companies) pay a flat 8% on the full purchase price effective 1 January 2026 under Budget 2026, doubled from the previous 4% flat rate. Loan agreement stamp duty is 0.5% of the loan amount for all buyer types.

Question 3

How much are legal fees for buying property in Malaysia?

Accepted Answer

Legal fees for buying property in Malaysia are based on the Solicitors Remuneration Order 2023: 1% on the first RM 500,000 of property price, 0.8% on the next RM 7,000,000, and 0.5% above that, with a minimum fee of RM 500. All fees are subject to 8% SST. The same scale applies to the loan agreement. For example, on an RM 800,000 property with a RM 720,000 loan, total legal fees are approximately RM 18,144 including SST.

Question 4

What is Interest During Construction (IDC) in Malaysia?

Accepted Answer

Interest During Construction (IDC) in Malaysia is the interest charged on the portion of the home loan that has already been disbursed by the bank to the developer, before the property is completed and handed over (VP). Under Schedule H of the Housing Development Act (HDA), the bank disburses the loan progressively as each construction milestone is completed. You only pay interest on the drawn-down amount, not the full loan. IDC payments replace full monthly instalments during the construction period, which typically lasts up to 36 months for strata properties.

Question 5

What is the maximum loan tenure for property in Malaysia?

Accepted Answer

The maximum home loan tenure in Malaysia is 35 years or until the borrower reaches age 70, whichever is earlier. Most Malaysian banks offer loan tenures of 25 to 35 years. Foreign buyers are generally eligible for the same loan tenure as Malaysian citizens, subject to the bank's assessment and the borrower's age at the time of application.

Question 6

What is the DSR limit for home loans in Malaysia?

Accepted Answer

The Debt Service Ratio (DSR) limit for home loans in Malaysia is generally 70% of net monthly income. This means your total monthly loan commitments (including the new home loan plus existing car loans, personal loans, credit cards etc.) should not exceed 70% of your take-home pay after EPF and tax deductions. Some banks may allow higher DSR for high-income earners. Use the AskHenry affordability calculator to estimate your maximum property price based on your income and existing commitments.

Question 7

What is a good rental yield for property investment in Malaysia?

Accepted Answer

A good gross rental yield for property investment in Malaysia is generally considered to be 4% to 6% per annum. KLCC and Bangsar condominiums typically yield 3% to 4.5%, while Johor Bahru properties near the CIQ checkpoint can yield 5% to 7% due to lower entry prices and demand from Singapore commuters. Net rental yield (after maintenance fees, insurance, and vacancy) is typically 1 to 1.5 percentage points lower than gross yield.

Question 8

How does the progressive payment schedule work for new launch properties in Malaysia?

Accepted Answer

For new launch (under construction) properties in Malaysia, payment follows Schedule H of the Housing Development Act (HDA) 1966. Stage 1 (10%) is paid by the buyer at SPA signing. From Stage 2(a) onwards, the bank disburses the loan progressively as construction milestones are completed: 10% for piling and foundation, 15% for reinforced concrete framework, 10% for walls and frames, 10% for roofing and utilities, 10% for plastering, 5% for sewerage, 5% for drains, and 5% for roads. The remaining 20% is disbursed at and after Vacant Possession (VP). Full monthly instalments begin at VP.

Question 9

How much down payment is required for property in Malaysia?

Accepted Answer

The standard down payment for property in Malaysia is 10% of the purchase price, as Malaysian banks typically offer up to 90% loan margin for the first two residential properties. For the third property onwards, the maximum loan margin is 70%, requiring a 30% down payment. Foreign buyers are generally limited to 60-70% loan margin depending on the bank, requiring a 30-40% down payment. Developer rebates can reduce the effective cash outlay at signing.

Question 10

What is the current home loan interest rate in Malaysia?

Accepted Answer

Home loan interest rates in Malaysia in 2026 are typically in the range of 3.8% to 4.5% per annum on a reducing balance basis, depending on the bank and the borrower's profile. Rates are usually quoted as Base Rate (BR) plus a spread. Bank Negara Malaysia's Overnight Policy Rate (OPR) influences these rates. Fixed rate packages are available from some banks. Compare rates from Maybank, CIMB, RHB, Hong Leong Bank, and Public Bank for the best deal.

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