Buying a house in Malaysia is something that our young generation is struggling to achieve.

There always a struggle to choose whether to buy a house or a car first. The truth, there isn’t a clear answer to this.

On that note, I did own a car first before buying a house as I need a car to travel to work.

Today we’re going to talk about an important topic – How to buy a house in Malaysia?

The idea of owning a house is something huge and something that makes us proud. However, is a House a Need or a Want?

For people who are buying the house for the first time, this can be a need for them. And for someone that is owning more than one home, it can be a want.

Regardless which today we’re going to dive into the topic, How to buy a house in Malaysia?


Before anyone can buy a house in Malaysia, it’s important to know that how much you’re affordable to buy?

Affordability calculation usually will be based on a borrower income and existing commitments.

Let said, based on Mr. Lee affordability property price is RM500,000. Then, Mr. Lee should only be aiming for this property price, instead of looking for the property above this amount.

This process will narrow down the house choices and be making the buying process more manageable.

The heart might like something that above our affordability price, but it’s our brain to bring logic and steer us back on the right path. It can be a challenge.

A few years back, when I was looking for a house to buy, I have to go through the same process.

I’d look for a house, and sometimes I’d find something that beautiful and suit me, but the price tag is a way too high. When this happens, I will remind myself to follow the affordability price tag. It’s hard, but it’s possible to achieve.


Next step will be checking your CCRIS report. CCRIS report is a report used by all the banks in Malaysia as a reference before giving out a loan.

CCRIS report will have all the borrower’s loan facilities information from all the banks such as loan amount, outstanding balance, the conduct, month arrears, special attention account, AKPK, etc…

If you know the way to read a CCRIS report, it can tell a lot about a borrower financial profile. Most of the times, it’s entirely accurate.

If you’re going to get a loan now or in future, you want to maintain a good CCRIS report.

You can print your CCRIS Report by wak-in to any Bank Negara branches all over Malaysia, or you can request it online.


I hope you know that buying a house will require some cash in hand.

If you don’t, well let’s this be your wake up call.

  1. You’ll need min 10% for the downpayment, provided you’ll get a 90% loan.

  2. You need to appoint a lawyer to prepare for your Sale and Purchase Agreement. The cost can be about 3-4% of the Purchase Price. These included in lawyer fees, disbursement fee and stamp duty.

  3. If you take a home loan from a bank, you’ll need to appoint a loan lawyer to prepare the loan agreement between you and the bank. The cost can be about 2-3% of the loan amount. This amount is included in bank valuation fees.

However, most of the bank is offering to finance such loan agreement fees. If they do, then you don’t need to pay in cash.

For Example,

If the property price: RM500,000

  1. Deposit: RM500,000 x 10% = RM50,000

  2. SPA Lawyer Fees and Stamp Duty :

RM500,000 x max 4% = RM20,000

  1. Loan Agreement and Valuation Fee :

RM500,000 x max 3% = RM15,000

Total cost to prepare : RM85,000

Is about (RM85,000 / RM500,000 )x 100% = 17% of the Purchase Price


Now, you’re ready to buy a home. Start searching and look for the home you like.

There are a few tips before putting down the deposit that we think you should know.

  1. Always deal with a registered property agent.

  2. Cheque deposit should be paid to the Property agency name.

  3. Negotiate everything with the seller before putting down the deposit.

  4. Always ask for longer time to sign SPA. At least 21 working days.

  5. Ask for a full refund in the event of loan rejection.

  6. Get the Seller existing Sale and Purchase Agreement ( SPA) or Property title copy before putting down the deposit or at least after paid the deposit, the agent or seller should give a copy. You’ll need this to apply for a home loan.

  7. Always appoint your own SPA lawyer. Do not use Seller or Agent Lawyer. You want to avoid the SPA terms and conditions biased toward you and lean toward seller.


Now you have to complete all personal documents, property booking receipt, and seller’s SPA/Title copy to apply for a home loan. Make sure everything is complete to avoid any delay later.

Bank’s approval usually will take about seven working days. Once approved, you can choose the bank you like.

There are a few tips to choose your home loan wisely.

  1. Look for banks that approved your loan 90% without including the Loan Agreement Lawyer Fees and Valuation Fees. Anything less than this will mean you have to top up your deposit.

  2. Look for the lowest home loan interest rates and lowest penalty rate or period.

  3. Make sure you have the home loan product you love. Home loan products to choose such as a conventional loan, Islamic loan, Full Flexi, Semi-Flexi, etc.

  4. Choose a long tenure, like 30 to 35 years. A longer tenure will mean a lower loan installment which is good if you want to get a loan in future and also it doesn’t burden you financially.

  5. Choose a bank that provides secure online payment or has a reliable internet online to access your account quickly.

  6. Choose a helpful banker, the one you can count on when you need help.

Bonus Tips: Do not forward your income documents to any third party to avoid your income documents being misused. You want to always submit your personal income documents directly to the bankers.


Once your loan is approved, is time to sign your letter offer. Make sure you have read every single clauses and page. Ask the bankers when need a clarification.

Then, you can arrange to sign your Sale and Purchase Agreement. If you’re using the same lawyer for SPA and Loan, you can ask them to prepare for both, so that you can get it done in one day.

During the signing of SPA and Loan agreement, make sure you’ll ask the lawyer every question you have in mind, no question is too small to ask.

After signing of the SPA and Loan agreement, you should receive a copy of SPA from the SPA lawyer. Always keep it well.

The Loan agreement copy will be given a bit later, usually will be a few weeks after the final disbursement.


(only for buying a completed house)

While waiting for the bank and lawyer to do their work, you might receive a call from the bank’s valuer for a site visit to the property.

You want to arrange an appointment with the valuer quickly, or you can request your agent to set it up for you. Either way, make sure it was made without delaying the process.

If you’re required to make a payment to the bank’s valuer, you want to do it without any delay too. The postponement of the valuation report will delay your disbursement time frame and eventually will affect you also.


Now, there is nothing you can do except for waiting. The bank, lawyer, and valuer will do their part.

But, it’s essential for you to monitor the process. Sometimes, things can go wrong.

Ideally, to follow up your status with banker or lawyer every two weeks.


When your bank has made the final disbursement to the Seller, you’ll receive a call from your lawyer to collect keys.

Now is your time to check the house. The seller should hand it over “as is where is” basis unless mention otherwise.

You would want to change all the locks to a new one and start planning for renovation or decorating the house.

Also, make sure you change all the utility bills to your name!

And don’t forget to serve your home loan installment!

So, that’s our tips on how to buy a house in Malaysia, and with this guide, we hope you’ll buy your new home soon!

If you think this is helpful, feel free to share it with all your friends and family on all the social media platform.

For more Home Loan information and enquiry, please call/ Whatsapp us at +6012-6946746 or visit our website or