1. Buying a home involves more costs than just the down payment and loan. Various fees and charges are incurred including stamp duty, legal fees for sale and purchase agreements and loan documents, loan processing fees, and insurance costs. 2. For a RM400,000 home with 90% financing, estimated additional fees and charges total around RM20,000 which is borne by the home buyer. 3. It is advisable for home buyers to have extra cash on hand beyond the 10% down payment to cover these unexpected additional fees and costs involved in the property purchase.

1. Property Disclosure – Home Purchaser Knowledge
Home Purchaser Knowledge – How much do u know?
It’s not all about monthly instalments – the largest upfront cost in a home purchase is the 10%
down payment on the property. But that’s not all.
First-time home buyers may not know it; but buying and financing a home takes more than
just the down payment and the loan. There are various miscellaneous fees and charges
involved. Below is estimation* of the fees and charges that may be incurred:
1) Stamp duty for transfer of ownership title (also known as memorandum of transfer or
MOT)
1% for the first RM100,000
2% on the next RM400,000
3% on the subsequent amount
2) Sale & Purchase Agreement (SPA) legal fees
1% for first RM150,000
0.7% of remaining value of property within RM1 million
3) Stamping for SPA – Less than a hundred Ringgit
4) SPA legal disbursement fees – A few hundred Ringgit
5) Loan facility agreement legal fees
1% for first RM150,000
0.7% of remaining value of loan within RM1 million
6) Stamp duty for loan – 0.5% of loan amount
7) Legal disbursement fee for Loan Facility Agreement – A few hundred Ringgit

2. 8) Fee for transfer of ownership title – A few hundred Ringgit
9) Mortgage Reducing Term Insurance – Think of it as a life insurance for your home loan. It
can come up to RM1,000 or more, but this may be optional with some banks.
10) Government Tax on Agreements – 6% of total lawyer fees
11) Bank processing fee for loan – RM200
*Note: The fees and charges are just an estimation based on recommended numbers and
industry averages. Actual figures may differ.
To put things into perspective, a home valued at RM400,000 with 90% margin of financing
may set you back by about RM20,000 in fees and charges – which will have to be borne by
you, the buyer.
It is advisable to always have extra cash on top of the money allocated for the 10% down
payment before making any property purchases.
12) Insurance of MRTA/MLTA
13) Assessment & Quit Rent on yearly basis
14) Fire Insurance
15) Monthly Maintenance Fees (if applicable)
16) Electric/ Water & Maintenance Deposits (Refundable)