Stamp duty on a housing loan agreement in Malaysia
Figures checked against official sources on
Stamp duty on a housing loan or home financing agreement in Malaysia is RM5 for every RM1,000 borrowed, which is 0.5% of the loan amount — not of the property price. A RM450,000 loan pays RM2,250. The borrower pays it, and a Malaysian citizen buying a first home up to RM500,000 under an SPA executed by 31 December 2027 is exempt.[1],[2],[3]
The rate: 0.5% of the loan
A loan agreement, charge or other instrument that is the principal security for repaying money falls under item 27 of the First Schedule to the Stamp Act 1949, which covers conventional loans and financing under the Syariah alike. For an ordinary ringgit loan the duty is RM5 for each RM1,000 or part of RM1,000.[1],[2]
Duty is charged on the amount of the loan. A collateral, auxiliary or additional security for the same loan is charged one-fifth of the duty on the principal security, up to a maximum of RM10.[2],[1]
Worked examples
| Loan amount | Stamp duty |
|---|---|
| RM200,000 | RM1,000 |
| RM300,000 | RM1,500 |
| RM450,000 | RM2,250 |
| RM675,000 | RM3,375 |
| RM900,000 | RM4,500 |
- Stamp duty on the transfer (MOT)
- RM9,000
- Stamp duty on the RM450,000 loan agreement
- RM2,250
- Stamp duty, before any exemption
- RM11,250
Who pays
The party who gives the security or takes on the obligation to repay — in a housing loan, the borrower.[2]
First-home exemption
The first-home exemption covers the loan agreement as well as the transfer: 100% for a Malaysian citizen’s first residential home priced up to RM500,000, for sale and purchase agreements executed from 1 January 2021 to 31 December 2027. See the first-home exemption guide.[3]
Deadline and penalty
Stamp the agreement within 30 days of signing it. Late stamping within 3 months of the deadline costs RM50 or 10% of the unpaid duty, whichever is higher; after that, RM100 or 20%, whichever is higher. Security instruments, which include loan agreements, have been stamped under LHDN’s self-assessment system since 1 January 2026.[4],[5]
Frequently asked questions
How much is stamp duty on a housing loan in Malaysia?
0.5% of the loan amount: RM5 for every RM1,000 or part of RM1,000 borrowed.[1]
How much stamp duty do I pay on a RM450,000 loan?
Is the loan stamp duty on the property price or the loan amount?
On the loan amount. The property price is the basis for the separate stamp duty on the transfer (MOT).[2]
Does Islamic home financing pay the same stamp duty?
Yes. Item 27 of the First Schedule covers financing under the Syariah in the same way as a conventional loan.[1]
Sources
- Stamp Act 1949 (Act 378), updated text as at 1 January 2024 — Attorney General’s Chambers, hosted by LHDN, checked
- Garis Panduan Pengenaan Duti Setem bagi Surat Cara yang Tertakluk kepada Jadual Pertama Akta Setem 1949 (30 June 2026) — LHDN, checked
- Budget 2027 tax measures, 9 October 2026 (proposals until enacted) — Ministry of Finance Malaysia, checked
- Stamp duty penalty — LHDN, checked
- Stamp Duty Self-Assessment System (STSDS) — LHDN, checked