Firstly buying a home is a huge decision to make, so if you decided to move forward and own that house that you’ve been dreaming for years. Then, you have to get ready financially or get ready the money.
Oh boy, let me tell you, buying a house in Malaysia will involve lots of money, and you might not like it. But, I guess that is the sacrifices every homeowner in Malaysia made.
So, let’s get into what are the fees or deposit that involved in purchasing a home in Malaysia.
1. 10% Deposit
The maximum margin given by bank’s in Malaysia is up to 90%, so it means that a buyer has to put down a 10% downpayment.
2. Sale & Purchase Agreement ( SPA ) Lawyer Fee, Stamp Duty, and Disbursement Fee comes about 3%-4% of the Purchase Price
SPA is an agreement sign between a buyer and seller. A purchaser will appoint a lawyer to prepare the agreement and help to complete the whole process. This come with a cost, the estimation will be in the range of 3-4% of the Purchase Price.
3. Loan documentation Lawyer Fee, Stamp Duty and Disbursement Fee comes to 2.50% to 3.0% of loan amount.
Many of us need a bank to complete the process when buying a house. We need a bank to finance the balance 90% of purchase price. So, this will involve another agreement, the cost of preparing this agreement is about 2.50% to 3.0% of Loan amount.
Most of the time, these fees can be financed into the loan. But, there are many banks might require customer to pay themselves. Although, if you ‘re lucky enough, some banks will absorb this fees with higher interest rate.
4. Valuation Fee, about 0.30% of Property value
Valuation fees only require for completed property, like when purchase from seller or property agent. A formal valuation report will be submitted to the financing bank. The valuation fee is about 0.30% of the property value.
5. Bank Processing Fee, about RM100-RM200
Some bank will charge a processing fee or account set up fees of RM200, depending on the home loan packages.
Here we have a scenario to show how much the actual cost involve buying a house in Malaysia.
If Mr. Alias would like to purchase a house and the house price is RM500,000. How much cash he needs?
1. 10% Deposit : RM500,000 x 10% = RM50,000
2. SPA Lawyer Fee, Stamp Duty and Disbursement Fee : RM500,000 x 4% = RM20,000
3. Loan documentation Lawyer Fee, Stamp Duty and Disbursement Fee : 3% x RM450,000 = RM13,500
4. Valuation Fee: RM500,000 x 0.30% = RM1500
5. Bank processing Fee : RM200
Total : RM50,000+RM20,000+RM13,500+RM1500+RM200 = RM85,200 ( 17% of Purchase Price)
About 17% of Purchase Price is the money you need when buying a house in Malaysia. So, before you walks down that road, or even before house hunting, you should make sure you have that much of cash.
Although, if you’re are lucky, you might only need to come out about 14-15% of purchase price as the valuation fee and loan documentation lawyer fees can be financed into the loan.
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