Malaysia tables Budget 2027 on 9 October 2026. For anyone buying their first home next year, one line in that speech matters more than the rest.
The first-time homebuyer stamp duty exemption expires on 31 December 2027. Juwai IQI wants it extended, and the reason is not sentimental. Letting it lapse quietly takes up to RM11,250 from buyers who thought they had until the end of next year.
What the Exemption Is Worth
It removes stamp duty on two documents, not one: the instrument of transfer, and the loan agreement. On a RM500,000 home with a 90% loan:
| Cost item | Without exemption | With exemption |
|---|---|---|
| Transfer instrument (MOT) | RM9,000 | RM0 |
| Loan agreement (0.5% of RM450,000) | RM2,250 | RM0 |
| Total at stamping | RM11,250 | RM0 |
Note: MOT is 1% on the first RM100,000 plus 2% on the next RM400,000, per the LHDN scale as at September 2026.
That RM11,250 is cash, not financing. Stamp duty cannot be rolled into the loan, so removing it changes who can actually complete a purchase.
The stamp duty extension is a vital measure because it helps more than three out of four buyers. Homes worth RM500,000 or less, which are covered by the exemption, make up about 76% of all residential purchases.
Kashif Ansari, Co-Founder and Group CEO, Juwai IQI
NAPIC’s 2025 data backs that up. Homes at RM300,000 and below were 52.3% of residential transactions, and the RM300,001 to RM500,000 band added 24.9%. Together, 77.2% of the market sits inside the exemption.
The Trap: Your Signing Date, Not Your Booking Date
Here is the part most buyers miss. Eligibility is triggered by the date the sale and purchase agreement is executed, not the date you paid the booking fee. For off-plan purchases, those dates can be months apart.
Imagine a buyer choosing an off-plan home in the second half of 2027. They might find out that they don’t qualify for the exemption because they didn’t end up signing their agreement until 2028, which is outside the window
Kashif Ansari, Co-Founder and Group CEO, Juwai IQI
There is a supply effect too. If nobody knows what happens after 2027, some affordable projects get shelved in 2026 rather than launched into an uncertain incentive.
A Cheap Policy, and Two Other Asks
Malaysia will table Budget 2027 on 9 October 2026, and for first-time homebuyers planning to purchase next year, one decision could make a real difference.
The current stamp duty exemption for first-time buyers is set to run until 31 December 2027. Juwai IQI is urging the government to extend the measure, as allowing it to expire could mean eligible buyers lose savings of up to RM11,250 when purchasing their first home.
This is not just about incentives. It is about reducing the upfront cost barrier for Malaysians entering the property market.
What This Means If You Plan to Buy in 2027
Buying a completed subsale home? You are in reasonable shape. The gap between offer and signing is usually short. Just do not leave it to December 2027.
Buying off-plan? Treat the signing date as your real deadline. Ask the developer in writing when the SPA will be executed.
Still saving? The exemption stacks with other supports. See our overview of first home schemes in Malaysia, and the real all-in cost of buying a house for what stays payable even when stamp duty is waived. Full eligibility rules are in our guide to the stamp duty waiver extended to 2027.
Budget speeches are not the place to gamble on timing. If your purchase can reasonably be completed inside the current window, complete it inside the current window.
This article is based on reporting by Kopi & Property on September 2026, with insights from Juwai IQI Group CEO Kashif Ansari on Budget 2027 proposals, first-time homebuyer support and measures to improve housing affordability.
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