Stamp duty relief now stretches to RM750,000 first homes and runs until 2030 — and the timing of your SPA suddenly matters a lot. Here's what was announced, what it's worth in ringgit, and what's still only a proposal.
Every October, the same thing happens. The Budget gets tabled on a Friday afternoon, and by Saturday morning your WhatsApp groups are full of screenshots saying "buy now, stamp duty free!" — usually missing the part about price caps, eligibility, and effective dates. Some of those messages are right. A lot of them are half right.
Budget 2027 was tabled on 9 October 2026 by Prime Minister Datuk Seri Anwar Ibrahim, who is also Finance Minister. For property, the headline is genuinely good news for first-time buyers in the "missing middle" price range — but it's a narrow budget for everyone else. This guide separates what was actually announced from the WhatsApp version, and puts real ringgit numbers on it.
| Measure | What was announced | Who it helps |
|---|---|---|
| First-home stamp duty | Full exemption up to RM500,000; homes up to RM750,000 get the first RM500,000 exempt + 50% off the balance. Covers the transfer instrument (MOT) and loan agreement. SPAs from 1 Jan 2027 to 31 Dec 2030. | First-time buyers |
| SJKP financing guarantees | Up to RM20 billion, targeting 80,000 first-time buyers | Self-employed, gig workers, irregular income |
| Affordable housing | Nearly RM1 billion for Rumah Mesra Rakyat and Program Residensi Rakyat, plus four new projects | Lower-income households |
| New KL housing | Bandar MADANI Bukit Jalil; at least 2,500 Rumah MADANI units in Belfield | Lower- and middle-income KL buyers |
| Abandoned projects | Full stamp duty exemption for recovered projects — the developer taking over and the original buyers, 2027–2030 | Buyers stuck in stalled projects |
| Investors / upgraders | No new property-specific incentive announced | — |
Under the rules in force today (from Budget 2026), first-time buyers get a full stamp duty exemption only on homes priced up to RM500,000, and only until 31 December 2027. Buy a RM600,000 condo as your first home today and you get nothing — you pay the full scale.
Budget 2027 proposes two tiers:
The relief applies to sale and purchase agreements (SPAs) completed from 1 January 2027 to 31 December 2030 — three years longer than the current deadline. That matters: you're no longer racing a 2027 cut-off, which removes some of the "rush to sign" pressure agents like to use.
Why the RM750,000 tier is a big deal: in Klang Valley, a lot of decent new-launch and subsale condos for young families now sit in the RM550,000–RM750,000 range. Until now, that whole bracket got zero first-home relief. Industry groups had been lobbying for exactly this — Rehda (the developers' association) even wanted it extended to RM1 million, and says it will keep pushing for that.
Stamp duty on the transfer instrument (MOT) in Malaysia runs on a tiered scale: 1% on the first RM100,000, 2% on RM100,001–RM500,000, and 3% on RM500,001–RM1 million. Here's what that looks like for a first-time buyer on the MOT alone, comparing today's rules with the Budget 2027 proposal:
| First-home price | MOT stamp duty (full scale) | Current rules (SPA in 2026) | Budget 2027 proposal (SPA from 1 Jan 2027) |
|---|---|---|---|
| RM450,000 | RM8,000 | RM0 | RM0 |
| RM600,000 | RM12,000 | RM12,000 | RM1,500 — saves RM10,500 |
| RM666,000 | RM13,980 | RM13,980 | RM2,490 — saves RM11,490 |
| RM700,000 | RM15,000 | RM15,000 | RM3,000 — saves RM12,000 |
| RM750,000 | RM16,500 | RM16,500 | RM3,750 — saves RM12,750 |
| RM800,000 | RM18,000 | RM18,000 | RM18,000 — above the RM750,000 cap |
How the RM700,000 line works: full-scale MOT duty is RM15,000. The first RM500,000 (worth RM9,000 in duty) is fully exempt. The remaining RM200,000 attracts RM6,000 in duty, which gets halved to RM3,000. So you pay RM3,000 instead of RM15,000.
On top of the MOT, there's the loan agreement stamp duty (0.5% of the loan amount) — for homes up to RM500,000 that's fully exempt too. For the RM500,001–RM750,000 tier, the exact method for the loan agreement will depend on the gazetted order, so we've left it out of the table rather than guess.
Plug in your numbers to estimate your stamp duty under today's rules versus the Budget 2027 proposal.
Estimates only, based on the Budget 2027 announcement of 9 October 2026 and the standard MOT scale (1% / 2% / 3% / 4%). The final rules apply only once the exemption order is gazetted — confirm your figures with your lawyer.
To put that in real terms: Aras Residences @ WCity OUG, a freehold new launch we list, starts from around RM666,000 — right in the middle of the new partial-exemption band. Likewise, The Maple Residences @ WCity OUG starts from around RM643,000. For an eligible first-time buyer, that's roughly RM11,000+ less in MOT stamp duty than they'd pay today — real money for furnishing or a bigger cash buffer.
Here's something that everyone overlooks. The new tier applies to SPAs completed from 1 January 2027. If you're a first-time buyer looking at a RM650,000 home and you sign the SPA in December 2026, you fall under today's rules — and today's rules give you nothing above RM500,000.
So for first-time buyers in the RM500,001–RM750,000 range, signing in late 2026 instead of January 2027 could cost you roughly RM10,000–RM12,750 in MOT stamp duty. That's a practical reason to talk to your lawyer about SPA timing before you rush into a year-end "last chance" promo.
For homes at RM500,000 and below, it makes little difference — you're fully exempt under both the current rules and the new proposal.
The government will provide housing financing guarantees of up to RM20 billion through Syarikat Jaminan Kredit Perumahan (SJKP), targeting about 80,000 first-time buyers — especially the self-employed and those without a fixed monthly income.
This targets a real bottleneck. As we covered in why Malaysian banks are rejecting more home loans in 2026, plenty of buyers can afford the monthly instalment but can't prove it to a bank because their income doesn't come as a neat payslip. A government guarantee behind the loan reduces the bank's risk, which can make the difference between rejection and approval. It won't fix a bad CCRIS record or an over-stretched DSR, though.
Some of the measures that matter for buyers aren't labelled "housing" at all:
Higher take-home pay improves your debt service ratio (DSR), which is what banks look at when deciding how much to lend you. Don't over-read it, though — for most middle-income buyers, the tax saving works out to tens of ringgit a month, not hundreds. It's a nudge, not a game changer.
Budget 2027 also puts names and places on new supply:
If you already own or are eyeing private property in Bukit Jalil, keep this in perspective. Government affordable housing schemes have eligibility and resale restrictions, and they serve a different buyer pool from the open market. We break down how Bukit Jalil's private tiers are actually moving in our Bukit Jalil Property Guide 2026.
The government has set a target of zero abandoned housing projects by 2030. To support it, Budget 2027 proposes a full stamp duty exemption on loan agreements and transfer instruments for abandoned projects that are being recovered — covering both the contractor or developer that takes over the project and the original buyers — from 1 January 2027 to 31 December 2030.
For buyers who've been paying a loan on a stalled project for years, this removes one more cost between them and their keys. It doesn't solve the bigger problem of finding a developer willing to take the project on in the first place.
Our first-time homebuyer stamp duty guide covers how the current exemption works in practice, including eligibility and how to claim it.
It proposes a full exemption on the transfer instrument and loan agreement for first homes up to RM500,000, plus a partial exemption for first homes up to RM750,000 — the first RM500,000 fully exempt and 50% off the balance. It applies to SPAs completed from 1 January 2027 to 31 December 2030.
No new HOC was announced. Rehda had asked for one targeting completed but unsold homes and has repeated the call after the Budget, but it isn't part of the announced measures.
The announcement refers to first-home purchases generally, not only new launches. The current first-home exemption covers both new launch and subsale, and the new tier is expected to work the same way — but confirm the eligibility conditions once the exemption order is gazetted.
If you're a first-time buyer and the home costs between RM500,001 and RM750,000, signing from 1 January 2027 could save you roughly RM10,000–RM12,750 in MOT stamp duty compared with signing in 2026. Under RM500,000, the timing makes little difference. Always weigh the saving against the risk of losing a unit you actually want.
Not directly. There are no new incentives for second homes, investment purchases or RPGT, according to the announced measures. Investors benefit only indirectly — for example, from more first-time buyers being able to afford mid-range homes when it's time to sell.
No. The announced measures don't include any direct incentive for buying commercial or industrial property — no stamp duty relief, RPGT change or tax break for shop lots, offices or factories. The first-home stamp duty exemption applies to residential property only. If you're weighing a commercial purchase, our commercial vs residential investment guide covers how the numbers compare.
The stamp duty measures are scheduled for 1 January 2027 to 31 December 2030, subject to Parliament passing the Budget and the exemption being gazetted. Parliamentary debate began on 12 October 2026, with the committee stage scheduled to end in late November.
This article is for general guidance only and does not constitute legal or financial advice. Budget 2027 measures are proposals until passed by Parliament and gazetted; stamp duty figures shown are calculated on the standard MOT scale for illustration and exclude loan agreement duty. Listing prices referenced are indicative starting prices — always verify current figures and your eligibility with your lawyer and bank before making a purchase decision.
Carrot Property can walk you through which units fall into the new stamp duty bands, how SPA timing affects your costs, and what you can realistically borrow — no pressure, no hard sell.