How Much Deposit Do You Need to Buy a House in Malaysia?
You need a minimum 10% down payment to buy a house in Malaysia. Budget for roughly 14–15% of the purchase price in total upfront cash once legal fees, stamp duty, and other purchase costs are added on top.
What Does the 10% Down Payment Actually Cover?
Malaysian banks can lend up to 90% of a property's value for your first or second home, which is why the standard down payment sits at 10%. That loan-to-value ceiling drops to around 70% from a third property onward, pushing the required down payment up to roughly 30%. Tenure can move that margin too — a leasehold property with a shorter remaining lease can see banks reduce the loan-to-value further; see Does Tenure (Freehold vs. Leasehold) Matter More Above RM1.5 Million in Kuala Lumpur? for how that plays out at higher price points.
For a subsale property, the 10% down payment is usually paid in two stages. A non-refundable 2% earnest deposit goes down with the Letter of Offer to secure the unit. The remaining 8% is due when you sign the Sale and Purchase Agreement (SPA), typically within 14 to 21 working days of the offer.
How Much Cash Will You Need in Total?
The 10% down payment is only part of your upfront cash requirement. On top of it, expect to pay legal fees, stamp duty, and a handful of smaller costs — together adding roughly 4–5% more to your total.
Legal fees for the SPA follow a tiered scale: 1.25% on the first RM500,000 of the purchase price, and 1% on amounts above that. Loan agreement legal fees are calculated on a similar tiered scale, usually working out to roughly 60–70% of the SPA legal fee.
Stamp duty on the Memorandum of Transfer (MOT) is also tiered: 1% on the first RM100,000, 2% on the next RM400,000, and 3% on anything above RM500,000. Stamp duty on the loan agreement is a flat 0.5% of your loan amount. A valuation fee (roughly RM300–700), first-year fire insurance (roughly RM250–450), and miscellaneous admin costs (roughly RM250–350) round out the smaller costs. Altogether, total upfront cash for a first or second property typically lands at 14–15% of the purchase price.
How Can You Reduce Your Upfront Cash?
Two levers can meaningfully lower what you need in cash: the first-time buyer stamp duty exemption, and an EPF Account 2 withdrawal.
Under Budget 2026, first-time Malaysian homebuyers get a full stamp duty exemption on both the Memorandum of Transfer (MOT) and the loan agreement for residential properties priced up to RM500,000. This exemption has been extended through 31 December 2027, and it removes the MOT stamp duty and loan agreement stamp duty portions of your upfront cash entirely for an eligible purchase.
You can also withdraw from your EPF Account 2 (now called Akaun Sejahtera) to help fund the down payment and related costs. Malaysian and non-Malaysian EPF members under 55, with at least RM500 in Akaun Sejahtera, can apply. For a financed purchase, the maximum withdrawal is the purchase price minus your approved loan amount, plus 10% of the purchase price — or your full Akaun Sejahtera balance, whichever is lower. For a self-financed (cash) purchase, the maximum withdrawal is 110% of the purchase price, or your full Akaun Sejahtera balance, whichever is lower. This withdrawal is available for up to two residential properties, provided the first is sold or disposed of before you claim for a second.
Not sure if you qualify for the exemption or an EPF withdrawal? Get in touch and I'll help you work it out.
What Does a RM500,000 Purchase Actually Cost Upfront?
Take a RM500,000 property bought with a 90% loan (RM450,000). The 10% down payment comes to RM50,000, split into a RM10,000 earnest deposit and a RM40,000 balance on SPA signing. Legal fees for the SPA and loan agreement together run roughly RM10,000–10,600, based on a 1.25% SPA legal fee (RM6,250) plus a loan agreement legal fee at 60–70% of that. Loan agreement stamp duty adds RM2,250 (0.5% of the RM450,000 loan), and valuation, insurance, and admin costs add a further RM800–1,500. Add the RM9,000 MOT stamp duty due on a RM500,000 property, and total upfront cash comes to roughly RM72,000–73,500 before any exemption.
If this is a first-time Malaysian buyer's first home, the Budget 2026 exemption removes both the RM9,000 MOT stamp duty and the RM2,250 loan agreement stamp duty — a combined RM11,250 in savings. That brings total upfront cash down to roughly RM61,000–62,000 instead of RM72,000–73,500. An eligible buyer can also apply to withdraw part of that amount from EPF Account 2, using the formula above, to reduce the actual cash paid out of pocket.
See what RM500,000 buys right now among our current listings. And once you know your budget, the next question is where to buy — see how KLCC, Bangsar, and Mont Kiara compare on price and yield. Buying as a foreign buyer? See the full KLCC/Bukit Bintang ownership cost breakdown for the extra stamp duty and tax figures that apply on top of the deposit above.