Malaysian Government latest policy on housing & real estate on 5/6/2020

(1) RPGT

RPGT exemption for disposal of residential homes between 1 June 2020 to 31 December 2021

Limit to 3 properties per person

Key word:

- Residential

- 1 June 2020 to 31 December 2021

(2) Loan Margin

Limit of maximum 70% margin on financing for 3rd Propery is lifted during the Home Ownership Campaign (HOC), for purchase of properties above RM600,000

Whether a buyer can get loan financing above 70% for the third property depends on the bank.

Previously banks are prohibited from giving above 70%, now this restriction is lifted.

Key word:

- above RM600,000

- subject to credit approval by individual banks

(3) Stamp Duty on Loan

100% waiver of stamp duty on loan agreements for SPAs signed between 1 June 2020 and 31 May 2021.

But developers must first give a minimum 10% discount to the properties.

Key words:

- minimum 10% discount by developers

- only residential properties

- priced between RM300,000 and RM2.5 million

(4) Stamp Duty on Instrument of Transfer

- limit to the first RM1 million of the home price

- not a full waiver

- anything above RM1 million still attracts stamp duty on the MOT.

Key words:

- home priced between RM300,000 and RM2.5 million

- residential

- SPA signed between 1 June 2020 and 31 May 2021

- minimum 10% discount by developers

Objectives

- to stimulate the property market

- provide financial assistance to home buyers