First-Time Homebuyer Schemes

Buying your first home in Malaysia is more affordable than many expect, because the government layers several distinct types of help on top of each other. They fall into four buckets:

• Tax savings — stamp duty exemptions on the transfer and loan documents (the i-MILIKI initiative), plus a once-in-a-lifetime RPGT exemption when you eventually sell.
• Affordable-home programmes — purpose-built homes sold below market: PR1MA, RUMAWIP / Residensi Wilayah, MyHome, and state schemes like Rumah Selangorku.
• Financing help — guarantees that let you borrow more than the usual 90%: Skim Rumah Pertamaku (SRP) and the Housing Credit Guarantee Scheme (SJKP) for gig/self-employed workers, plus LPPSA for civil servants.
• Your own savings — withdrawing from EPF to fund a deposit or cut your loan.

Most schemes require you to be a Malaysian citizen who has never owned residential property, each with its own income, age and price limits. Critically, thresholds change with each annual Budget — always confirm current figures.

When you buy property you normally pay stamp duty on two documents: the instrument of transfer (MOT) and the loan agreement. For first-time buyers, the government waives these under the i-MILIKI initiative.

Confirmed for 2026 (Budget 2026):

The exemption was extended for SPAs executed from 1 January 2026 to 31 December 2027.

Eligibility: Malaysian citizen who has never owned any residential property (including by inheritance or gift). PRs and foreigners do not qualify.

Standard MOT rates (what you save): 1% on the first RM100k, 2% on RM100k–RM500k, 3% on RM500k–RM1m, 4% above. Loan agreement duty is 0.5% of the loan.

> Note: an earlier tier gave a 75% exemption for homes RM500,001–RM1 million, but it expired at the end of 2023 and was not revived in Budget 2026. So above RM500,000 there is currently no first-home stamp-duty exemption — verify with LHDN before relying on any higher band.

Perbadanan PR1MA Malaysia builds and sells new homes — typically RM100,000 to RM400,000, around 20% below market value — to middle-income Malaysians.

Who qualifies: - Malaysian citizen, aged 21+ - Gross household income RM2,500–RM15,000/month (individual or combined with spouse) - Generally must not own more than one property

How it works: register free on the PR1MA portal. When demand exceeds supply, units are allocated by open ballot; successful applicants get an offer letter.

PR1MA also runs a Rent-to-Own (RTO) pathway (see below). Availability depends entirely on which projects are open in your area.

Beyond PR1MA, several programmes target specific groups or regions:

Eligibility for all: Malaysian citizen, 21+, priority to those who don't already own a home. Income bands and prices are set per programme and revised periodically — check the official portal (KPKT for MyHome, residensiwilayah.kwp.gov.my for RUMAWIP). These schemes are supply-limited — you can only buy what's currently being launched.

Banks normally cap home loans at a 90% margin of finance (you fund a 10% deposit). Two government guarantee schemes help first-timers borrow more.

Borrowing 100%+ reduces upfront cash but means higher monthly repayments and total interest — see our mortgage guide.

You can tap your EPF (KWSP) savings to help buy a home — a major source of deposit funds for many Malaysians.

The 2024 account restructure (effective 11 May 2024): EPF accounts for members under 55 were reorganised into three: - Akaun Persaraan (Account 1) — retirement, locked. - Akaun Sejahtera (Account 2) — medium-term needs including housing. - Akaun Fleksibel (Account 3) — withdrawable anytime for short-term needs.

Housing withdrawals come from Akaun Sejahtera (Account 2) and can be used to: - Buy or build a home — help fund the deposit and costs. - Reduce or redeem your housing loan principal. - Pay the monthly instalment via direct EPF deduction.

You can only buy one residential property at a time under the scheme, and withdrawals reduce your retirement savings. Eligibility depends on your balance, age and prior withdrawals — confirm at kwsp.gov.my.

Rent-to-Own lets you move in and rent first, with the option to buy later — useful if you can't yet get a loan or save a deposit.

Main schemes: - Maybank HouzKEY — a Shariah-compliant lease-to-own product; the bank buys the property and leases it to you (initial 5-year tenure, extendable), with no down payment. Citizens aged 18–70 with no more than one existing home financing. - PR1MA RTO — RTO pathway for PR1MA homes (same income band; 5-year moratorium applies). - State / agency schemes — e.g. Selangor Smart Sewa.

How it works: you pay rent for an agreed period; a portion may go toward the eventual purchase price, often locked in upfront. At the end, you buy at that price or walk away.

Weigh carefully: RTO removes the deposit hurdle but you may pay more overall, and terms vary by scheme. Read the contract closely.

Two things to understand for the long game:

RPGT once-in-a-lifetime exemption: when you eventually sell a property at a profit, you pay Real Property Gains Tax (RPGT). But Malaysian citizens and PRs get a once-in-a-lifetime full exemption on the disposal of one private residence — zero RPGT regardless of gain or holding period. You must have lived in it and elect via Form CKHT 3 on the e-CKHT system. Even when no tax is due, you must still file the RPGT return within 60 days of disposal.

See our mortgage guide for loan eligibility, DSR and how much you can borrow.