Many first-time homebuyers may feel relieved when they learn that they are eligible for a 100% stamp duty exemption for properties worth up to RM500,000.

But don’t get the wrong idea… a stamp duty exemption doesn’t mean buying a house is free from other costs.

There are still several expenses you need to prepare for, including an important change in 2026 that buyers should be aware of.

1. Stamp Duty Self-Assessment System

Starting 1 January 2026, Malaysia began implementing the Stamp Duty Self-Assessment System.

Under this system, the taxpayer or their representative is responsible for ensuring that the stamp duty is calculated and declared correctly according to the relevant rules.

In other words, buyers should not rely entirely on the authorities to identify or correct mistakes in their calculations.

2. Legal Fees

The stamp duty exemption only covers stamp duty for eligible documents, such as the Memorandum of Transfer (MOT) and loan agreement.

It does not cover the legal fees charged for handling the property purchase process.

So, even if your stamp duty is fully exempted, you still need to set aside a budget for legal fees.

3. Property Valuation Fees

If you are buying a house with a bank loan, the bank may require a property valuation to determine the property's market value.

This valuation fee is a separate expense and is not covered by the stamp duty exemption.

For first-time homebuyers, this is one of the upfront costs that can easily be overlooked because the focus is usually on the deposit and monthly loan payments.

4. MRTA/MLTA Protection Costs

MRTA and MLTA are two types of mortgage protection insurance.

  • MRTA (Mortgage Reducing Term Assurance) provides coverage that decreases as your outstanding loan balance decreases and is generally paid as a lump sum.
  • MLTA (Mortgage Level Term Assurance) provides a fixed level of coverage, is usually paid through regular premiums, and may provide a remaining payout to beneficiaries, depending on the policy.

Homebuyers may be offered MRTA or MLTA to help settle the outstanding loan if they pass away or suffer permanent disability.

The cost depends on the plan you choose, and in some cases, the premium can be included in the home loan. So, check the actual amount you will be paying before agreeing to a plan.

5. Stamp Duty Exemption Has Limits

The 100% exemption does not apply to every home purchase.

It is subject to the eligibility requirements, property value and period set by the government.

If the property price exceeds the applicable limit or you do not meet the eligibility requirements, stamp duty may still apply.

So, buying your first home does not automatically mean zero stamp duty. Check the latest requirements and your eligibility before making a purchase.

3 Phrases To Learn

1. Self-assessment: a system where the taxpayer or their representative is responsible for calculating and declaring the amount themselves according to the applicable rules.

2. Hidden cost: an additional expense that is often overlooked in a transaction.

3. Liability: legal or financial responsibility for something or for a mistake.

A stamp duty exemption can certainly reduce the cost of buying a home, but it does not mean you can buy a house without additional expenses.

Besides stamp duty, remember to factor in legal fees, property valuation fees, mortgage protection and other potential costs.

With the implementation of the Stamp Duty Self-Assessment System in 2026, it is also important to make sure your stamp duty information and calculations are accurate before submitting documents or making payment.