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

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)