Budget 2027 first-home stamp duty and housing: what changes

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10 minutes read

October 11, 2026

Budget 2027 first-home stamp duty and housing: what changes

On Friday 9 October 2026, Budget 2027 (Belanjawan 2027) proposed a change to first-home stamp duty (duti setem). Right now it's all or nothing. A first home priced at RM500,000 pays no stamp duty. At RM500,001, the exemption falls away and you pay full duty on the whole price.

The proposal would soften that cliff for sale and purchase agreements (SPAs) signed from 2027 to 2030, according to the [Budget 2027 tax measures] from the Finance Ministry (MOF). It isn't law yet, and it only applies if it's gazetted as proposed.

Key takeaways

- Malaysian first-home buyers would pay no stamp duty on the first RM500k of the price and 50% off the duty on the part from RM500k to RM750k, under a Budget 2027 proposal for SPAs signed 2027 to 2030.
- The new 50% tier needs an SPA signed from 1 January 2027. By our reading of MOF's dates, a first home priced above RM500k with an SPA signed in 2026 pays full stamp duty.
- As of 11 October 2026, MOF's Budget 2027 papers don't say whether subsale homes qualify.
- SJKP's home loan guarantees continue at up to RM20 billion in Budget 2027, for 80,000 first-time buyers, especially the self-employed without a fixed income.
- People renting a home get no rent relief or rent discount in Budget 2027. The only rent discount is 50% for small traders in DBKL premises.
- For KTM Komuter riders, MOF's Budget 2027 summary proposes MyKomuter50: unlimited rides for RM50 a month for eligible Malaysian citizens. It covers KTM Komuter only. The LRT, MRT and Monorail are on My50, a separate RM50 pass.

How does the Budget 2027 first-home stamp duty exemption work?

Under MOF's Budget 2027 proposal, first-home buyers would pay no stamp duty on the first RM500,000 of the price, and half the duty on the part from RM500,000 up to RM750,000. It's for Malaysian citizens, on SPAs signed from 1 January 2027 to 31 December 2030. It covers both the memorandum of transfer (MOT) and the loan agreement.

MOF hasn't published how the 50% is worked out for the transfer or the loan agreement, so any ringgit saving quoted for a RM500,000 to RM750,000 home is unofficial. It also hasn't said whether subsale homes, SOHOs or serviced apartments qualify, or whether the test is the price or the market value.

Should I sign my SPA in 2026 or wait until 2027?

Waiting for a 2027 SPA only matters if your first home is priced above RM500,000 up to RM750,000. The new 50% tier starts with SPAs signed from 1 January 2027, if it's gazetted as proposed. Check the dates with your lawyer before you sign.

Home priced RM500,000 or less: exempt whether you sign in 2026 or 2027.
Home priced above RM500,000 up to RM750,000, SPA signed by 31 December 2026: no exemption, by our reading of MOF's dates, so full duty on the whole price.
Same home, SPA signed from 2027 to 2030: the first RM500,000 would be duty-free, with 50% off the duty on the rest.
Home priced above RM750,000: no word yet. "Up to RM750,000" suggests nothing applies, which would move the cliff there.

What Budget 2027 means for you

If you're buying a first home up to RM500,000. Nothing gets worse, and the proposal would keep your exemption going for SPAs signed up to 31 December 2030. Still choosing where to buy? [Check the flood risk] first.

If you're buying above RM500,000 up to RM750,000. The change is for you, so check the SPA dates above before you sign, and [check what homes in the project actually sold for]. Paying too much for the home can wipe out what you save on stamp duty.

If you're selling in that range. Don't promise buyers the new exemption yet. Whether subsale homes qualify is still open.

If you rent. There's no rent relief or rent discount for people renting a home. If you commute by KTM Komuter, MOF's [budget summary (in BM)] proposes MyKomuter50: unlimited KTM Komuter rides for RM50 a month for eligible Malaysian citizens. It doesn't cover the LRT, MRT or Monorail, which are on My50, a separate RM50 pass. The MyKomuter50 rules and start date aren't out yet.

If you live in a flood area. The [Budget 2027 speech] proposes raising disaster home repair aid from RM5,000 to RM10,000.

If you bought into an abandoned project. MOF proposes bringing back the full stamp duty exemption for reviving KPKT-certified abandoned projects, for original buyers and rescue developers, on documents signed from 2027 to 2030.

No payslip? Can SJKP help me get a home loan?

SJKP can help a first-time buyer without a payslip get a home loan, but it doesn't guarantee approval. The Budget 2027 speech says SJKP (Syarikat Jaminan Kredit Perumahan), the government's home loan guarantor, will provide housing financing guarantees of up to RM20 billion for 80,000 first-time buyers, "particularly the self-employed without a fixed income". Last year's Budget 2026 speech had the same figures. [Budget 2027 speech][Budget 2026 speech]

MOF's summary splits it into two RM10 billion schemes: up to 120% financing for affordable homes below RM300,000, and up to 110% for other first homes. Both list gig workers, freelancers and people with non-fixed income.

The bank still decides, so get your bank statements and LHDN Form B in order first. [Why so many Malaysians can't get a home loan]

How do I register for Bandar MADANI Bukit Jalil?

Bandar MADANI Bukit Jalil Phase 1 registration opens on Monday 12 October 2026, but as of 11 October the government hadn't said where or how to register. The Budget 2027 speech, tabled on Friday 9 October, says only that it opens "this Monday". [Budget 2027 speech]

Register only through a channel the government announces, and don't sign up through links forwarded on social media or WhatsApp.

Registering only records your interest. No prices, unit numbers or eligibility rules have been announced. Federal Territories Minister Hannah Yeoh said Phase 1 still needs DBKL planning permission, Berita RTM reported on 10 October. [Berita RTM]

Never pay anyone to "secure" a unit. Check who you're dealing with first. [Verify before you pay]

What was not in Budget 2027

Checked against the speech and MOF's tax measures:
- No Home Ownership Campaign (HOC). The developers' association REHDA welcomed the housing measures but asked the government to reconsider reviving the campaign, [Malay Mail reported] on 9 October.
- No change to EPF withdrawals for buying a home.
- No new income tax relief for home loan interest, tenants' rent or landlords' rental income.
- No RPGT (property gains tax) change. No change to stamp duty or MM2H (Malaysia My Second Home) rules for foreign buyers.

Where we stand

We won't put a ringgit figure on the saving between RM500,000 and RM750,000 until MOF publishes how the 50% works. Sarah, our AI property assistant, also can't tell you whether you qualify. Your lawyer can advise, and confirm it once the final rules are out. What Sarah can do: show what homes in a project sold for and its flood risk, work out what you can afford, and check your loan eligibility. [Ask Sarah] about a project by name, free for buyers. Already looking in Bukit Jalil? See what [Bukit Jalil homes] rent and sell for.

Ringkasan: Bajet 2027 dan duti setem rumah pertama

Belanjawan 2027 mencadangkan pembeli rumah pertama warganegara Malaysia tidak membayar duti setem bagi RM500,000 pertama harga rumah, dan mendapat pengecualian 50% bagi baki harga hingga RM750,000.

Ia untuk perjanjian jual beli (SPA) yang ditandatangani dari 2027 hingga 2030.

Mengikut tafsiran kami terhadap tarikh yang dinyatakan MOF, SPA yang ditandatangani pada 2026 bagi rumah melebihi RM500,000 hingga RM750,000 tidak layak untuk pengecualian.

Syarat yang diumumkan setakat ini: warganegara Malaysia yang membeli rumah kediaman pertama; syarat lain belum diperincikan.

Pengecualian ini hanya berkuat kuasa jika diwartakan seperti yang dicadangkan, dan status rumah subsale belum dinyatakan.

SJKP terus menyediakan jaminan pembiayaan perumahan sehingga RM20 bilion untuk 80,000 pembeli rumah pertama, terutamanya golongan yang bekerja sendiri tanpa pendapatan tetap.

Pendaftaran Fasa 1 Bandar MADANI Bukit Jalil dibuka mulai Isnin, 12 Oktober 2026, tetapi setakat 11 Oktober saluran pendaftaran belum diumumkan. Daftar melalui saluran yang diumumkan kerajaan sahaja, dan jangan bayar sesiapa untuk "menempah" unit.

Frequently asked questions

Short answers, as of 11 October 2026.

Is the Budget 2027 stamp duty exemption already in effect?

No. It's a proposal in MOF's Budget 2027 tax measures, for SPAs signed from 1 January 2027 to 31 December 2030, and it only takes effect if it's gazetted as proposed. Until then, the current exemption applies: no stamp duty for Malaysian first-home buyers on a home priced up to RM500,000, for SPAs signed by 31 December 2027, according to the same MOF document. [Budget 2027 tax measures]

How much stamp duty will I pay on a RM600,000 first home under Budget 2027?

For an SPA signed in 2026, you'd pay about RM14,700 in total: by our reading of MOF's dates, the current exemption stops at RM500,000, so full duty applies on today's Stamp Act scale. That's RM12,000 on the transfer (1% on the first RM100,000, 2% on the next RM400,000 and 3% on the last RM100,000) and RM2,700 on the loan agreement (0.5% of a RM540,000 loan, taking a 90% loan as an example). [EdgeProp stamp duty rates]

For an SPA signed from 1 January 2027, there's no official ringgit figure yet, because MOF hasn't published how the 50% on the part above RM500,000 is worked out. The first RM500,000 of the price would still be duty-free, if it's gazetted as proposed.

Does the first-home stamp duty exemption cover subsale homes?

MOF's Budget 2027 tax measures don't say whether subsale homes qualify for the first-home stamp duty exemption. The National House Buyers Association has asked the same question, the New Straits Times reported on 9 October 2026, and the government had not answered as of 11 October. [NST report]

The Inland Revenue Board (LHDN) covers stamp duty at its Budget 2027 tax seminar on 14 and 21 October, according to its media statement, so that's the first likely point for official detail. [LHDN seminar notice]

Until MOF or LHDN confirms that subsale homes qualify, don't count on the exemption.

Who counts as a first-time home buyer under Budget 2027?

MOF's Budget 2027 papers say the exemption is for Malaysian citizens buying their first residential home, with no income cap mentioned. They don't yet say whether the current conditions carry over, such as never having owned a residential property and making a statutory declaration. Check the gazetted exemption order, or ask your lawyer, before you sign.