Stamp It To Get Your Home
Find Out How Much The Stamp Duty Costs For Your New Home
Category: Step 3: Getting Legal | Tags: Documents, Finance, Government, Loans, Tax, The Journey
Buying a home is a process that involves official documents which need to be validated and as such will get charged a tax called “Stamp Duty”. This tax is calculated based on your purchase price by the government during the sale or transfer of the property.
The 2 stamp duties charged are:
- Memorandum of Charge (MOC) for your Loan Agreement
- Memorandum of Transfer (MOT) for your SPA
The stamp duty on the MOC has a flat rate of 0.5% of your loan amount. It can be financed into your loan value, and the best part is that first time home buyers are entitled to an exemption of up to RM1,500! Here’s a little figure for example!
Sales and Purchase Agreement (SPA) and Memorandum of Transfer (MOT):
These documents are also based on the purchase price and are calculated on a tiered basis. Similar to stamp duty on the loan agreement above, first-timers will also be entitled to an exemption of up to RM5,000 as long as the price of your new home is no more than RM500,000. Take a look at the charts below!
So yes, you will be charged in different ways according to the price of your house when it has been broken up into the stated categories. The percentage will increase with the cost of your home. While the figures do look rather daunting, developers offer packages to help buyers financially and to encourage more people to buy a home. So don’t forget to ask for any promotions available when you’re out house shopping!