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Johor property buying costs in 2026: what a Malaysian buyer pays on top of the price
On a RM650,000 subsale home in Johor with a 90% loan, a Malaysian buyer pays about RM32,500 on top of the price: RM13,500 stamp duty on the transfer, RM2,925 on the loan, RM14,850 in scale legal fees and RM1,188 service tax, before the lawyer's disbursements. That is about 5% of the price, plus the 10% down payment. A first home of RM500,000 or less pays no stamp duty on either document until 31 December 2027.
Updated 13 October 2026 · Chris Liew, REN 08014, PropNex Realty
The short version
Budget about 5% of the price for costs and 10% for the down payment, so roughly 15% in cash before you sign. The two stamp duties and the two sets of legal fees are fixed by law, so you can work them out to the ringgit before you make an offer. What changes the bill most is whether this is your first home, whether the price is under RM500,000, and whether you are buying from a developer or from an owner.
Stamp duty on the transfer
The memorandum of transfer, the MOT, is the document that moves the title to your name. Its stamp duty is charged in bands on the price or the market value, whichever is higher. The bands below are the ones in force for Malaysian buyers in 2026, as listed in PwC's Malaysian Tax Booklet.
| Part of the price | Rate | Duty on that band |
|---|---|---|
| First RM100,000 | 1% | RM1,000 |
| Next RM400,000 (to RM500,000) | 2% | RM8,000 |
| Next RM500,000 (to RM1,000,000) | 3% | RM15,000 |
| Above RM1,000,000 | 4% | 4% of the excess |
So a RM400,000 home pays RM7,000, a RM650,000 home RM13,500 and a RM1,000,000 home RM24,000. If you are not a Malaysian citizen or permanent resident, the rate on residential property is a flat 8% from 1 January 2026, and Johor adds its own state approval fee. That is a different calculation, and my Horizon Hills and Puteri Harbour guides work it through.
Stamp duty on the loan
The loan agreement is stamped at 0.5% of the amount you borrow. On a 90% loan that is RM1,800 for a RM400,000 home, RM2,925 for RM650,000 and RM4,500 for RM1,000,000. Treat it as cash you need when the loan documents are signed.
Legal fees: two sets, both on a fixed scale
You pay a lawyer for the sale and purchase agreement and the transfer, and a lawyer for the loan documents. Often it is the same firm. Both are charged on the Solicitors' Remuneration Order 2023, in force since 15 July 2023: 1.25% on the first RM500,000, with a RM500 minimum, and 1% on the next RM7,000,000. Service tax of 8% has applied to legal fees since 1 March 2024.
| Price (loan at 90%) | Sale and transfer fee | Loan fee | 8% service tax |
|---|---|---|---|
| RM400,000 (RM360,000) | RM5,000 | RM4,500 | RM760 |
| RM650,000 (RM585,000) | RM7,750 | RM7,100 | RM1,188 |
| RM1,000,000 (RM900,000) | RM11,250 | RM10,250 | RM1,720 |
Disbursements are on top: land searches, registration, courier and the like. They are not on a scale, so ask the firm for a written quote before you appoint it. If a quote comes in far below these numbers, ask what it leaves out.
Buying from a developer costs less in legal fees
For a housing developer's sale under the Housing Development Act, the 2023 order sets a lower scale: 70% of the normal fee for RM250,000 to RM500,000, 65% for RM500,000 to RM1,000,000 and 60% above that. On a RM650,000 new launch the sale fee drops from RM7,750 to about RM5,038. Some developers in Johor also pay the sale and loan legal fees as a launch package. Read the booking form line by line: it should say which fees are free, and whether the stamp duty is included or only the fees.
First home: what is exempt now and what Budget 2027 proposes
Today a Malaysian citizen buying a first home worth RM500,000 or less pays no stamp duty on the transfer or on the loan agreement, for sale and purchase agreements signed up to 31 December 2027. On a RM400,000 first home that saves RM8,800, and your costs fall to about RM10,260 in legal fees and service tax. Above RM500,000 there is no partial relief in 2026.
Budget 2027, tabled on 9 October 2026, proposes to widen this. Homes up to RM500,000 stay fully exempt, and homes above RM500,000 up to RM750,000 get the first RM500,000 exempt plus a 50% exemption on the rest, for agreements signed from 1 January 2027 to 31 December 2030. It is a proposal until the Finance Act is passed. If you are a first-time buyer looking at something between RM500,000 and RM750,000 and the seller can wait, it is worth asking your lawyer whether signing in January makes sense.
Down payment and how much the bank lends
Most banks lend up to 90% on a first or second home, so the usual cash part is 10%, paid partly as an earnest deposit with the offer and the rest when the sale and purchase agreement is signed. From your third housing loan, Bank Negara caps the loan at 70% of the value, a rule in force since 3 November 2010. On a RM650,000 third property that means RM195,000 down instead of RM65,000.
Three worked examples
| RM400,000 | RM650,000 | RM1,000,000 | |
|---|---|---|---|
| Stamp duty, transfer | RM7,000 | RM13,500 | RM24,000 |
| Stamp duty, 90% loan | RM1,800 | RM2,925 | RM4,500 |
| Legal fees, sale and loan | RM9,500 | RM14,850 | RM21,500 |
| Service tax at 8% | RM760 | RM1,188 | RM1,720 |
| Costs before disbursements | RM19,060 (4.8%) | RM32,463 (5.0%) | RM51,720 (5.2%) |
| First home, citizen, signed by 31 Dec 2027 | RM10,260 | RM32,463 (no relief) | RM51,720 (no relief) |
| Down payment at 10% | RM40,000 | RM65,000 | RM100,000 |
Subsale purchase by a Malaysian with a 90% loan. Disbursements, valuation, insurance and moving costs are not included.
How I would budget
Take 15% of the asking price as the cash you need before keys, then add a cushion for the first few months of maintenance fees, utility deposits and any repairs. If you are a first-time buyer near RM500,000, look hard at units just under the line: a RM498,000 home pays no stamp duty at all, while a RM510,000 home pays RM9,300 on the transfer and RM2,295 on a 90% loan. In Johor Bahru city and Iskandar Puteri there are plenty of condos and terraces in both bands. Send me the price range and the area and I will list what is on the market now, with the costs worked out for each.
Questions buyers ask
How much are the buying costs for a house in Johor?
How is stamp duty on the memorandum of transfer worked out in Malaysia?
Is there a stamp duty exemption for first-time home buyers in 2026?
What did Budget 2027 change for first home buyers?
How much are lawyer fees for buying a property in Malaysia?
How much stamp duty do I pay on a housing loan?
How much down payment do I need for a house in Johor?
Chris Liew, licensed real estate negotiator REN 08014, PropNex Realty. Independent guide. Stamp duty bands, the loan rate, the first-home exemption and the foreign-buyer rate are from PwC's Malaysian Tax Booklet; the Budget 2027 proposal is as reported by The Star on 9 October 2026. Legal fee scales are from the Solicitors' Remuneration Order 2023. The 8% service tax on legal services applies from 1 March 2024. The 70% cap on a third housing loan is from Bank Negara Malaysia's statement of 3 November 2010. Examples are worked from those rates and rounded to the ringgit. This is not legal or tax advice; confirm every figure for your purchase with your lawyer and bank.