Buying your first home in Malaysia comes with several government-backed schemes and bank facilities designed specifically to ease the entry cost. Here are the main ones worth knowing about.
Stamp duty exemptions
The government periodically runs exemptions on the Memorandum of Transfer (MOT) stamp duty for first-time buyers, usually tied to price thresholds that are announced or revised in the annual Budget. These exemptions have historically covered a meaningful share of buyers, since they typically apply up to a mid-range price point that covers most entry-level homes.
Because these thresholds and eligibility rules change from Budget to Budget, always check the current scheme details directly with LHDN (the Inland Revenue Board) or your conveyancing lawyer before assuming you qualify.
EPF Account 2 withdrawal
EPF members can withdraw from Account 2 to help fund a house purchase — commonly used to cover part of the down payment or related purchase costs. There are conditions (such as a minimum balance and purchase-related documentation), so this needs to be arranged through EPF's official withdrawal process rather than assumed automatic.
Skim Rumah Pertamaku (My First Home Scheme)
Aimed at eligible first-time buyers, particularly younger buyers and those with limited savings, this scheme is designed to allow financing closer to 100% of the property price (reducing the usual 10% cash down payment requirement), subject to income eligibility and participating bank approval.
PR1MA and RUMAWIP
These are government affordable-housing programmes (PR1MA nationally, RUMAWIP specifically for Wilayah Persekutuan/KL) offering homes below market price to eligible applicants, usually with household income caps. Availability depends on ongoing project launches rather than being available on every property.
Longer loan tenures for younger buyers
Malaysian banks generally allow home loan tenures of up to 35 years, capped by the borrower reaching a maximum age (commonly around 65-70) by the end of the loan. A first-time buyer in their 20s or early 30s can often access a longer tenure than someone buying their second or third property later in life, which meaningfully lowers the monthly instalment.
Common questions
Do I need to be a Malaysian citizen to use these schemes?
Most of these schemes (stamp duty exemptions, EPF withdrawal, Skim Rumah Pertamaku, PR1MA/RUMAWIP) are designed for Malaysian citizens. Foreign buyers face a different set of rules, covered in our separate guide on buying property as a foreigner.
Can I combine several of these benefits on one purchase?
Often yes — for example, using an EPF withdrawal toward your down payment while also benefiting from a stamp duty exemption and a higher-financing scheme, provided you meet each scheme's individual eligibility criteria.
How do I find out if I currently qualify?
The most reliable route is checking directly with LHDN for stamp duty rules, EPF for withdrawal eligibility, and your chosen bank for financing scheme eligibility, since criteria are periodically updated.