What is the cost incurred for buying a home?
In the last post, we discuss about the calculation of monthly mortgage repayment for a house. With this calculation, we can plan to buy a home that we affordable with our monthly income.
However, there are other entry cost incurred of buying a home. Here, we unveil to you the possible costs which you may incur when buying a house.
i) Down payment
Normally, the down payment is
10% of the total purchase price OR the difference between the loan amount and the purchase price.
Banks normally can only give loans up to
90% of purchase price or valuation, whichever is lower.
ii) Legal Fee-Sales & Purchase Agreement, Loan Agreement + Stamp Duty
Legal fees is payable to the appointed lawyer who will prepare Sale
& Purchase Agreement between purchaser and vendor.
Stamp Duty which also known as Memorandum Of Transfer (MOT) is payable
to the government & collected by Lawyer on behalf of the government.
Calculation of Legal Fees & Stamp Duty :-
a. Legal Fees
| Purchase Price | Charge |
| First 150,000 | 1.000% (subject to a minimum fee of RM300) |
| Next 850,000 | 0.700% |
| Next 2,000,000 | 0.600% |
| Next 2,000,000 | 0.500% |
| Next 2,500,000 | 0.400% |
| Remainder | 0.300% |
b. Stamp Duty
| Purchase Price | Charge |
| First RM100,000 | 1.000% |
| Next RM400,000 | 2.000% |
| Remainder | 3,000% |
c. Loan Agreement Stamp Duty
0.5% of the loan amount or RM5 per RM1,000
Note:
- Professional Legal Fees to be included 6% of goods and service tax.
- Disbursement Fees to be ranging of RM1000-RM1500.00 (based on estimation)
- For first time house buyer, there is 50% rebate on stamp duty if your property price is less than RM500,000
iii) Valuation Fee
If a buyer apply a mortgage loan to purchase a property. The bank will appoint a valuation company to conduct a
valuation report for Application of Credit Facility. All the cost of
valuation will be borne by the buyer.
Here is how valuation fees calculate base on the property you purchased:-
For First RM100K =0.25%
Next residue up to RM2 mil = 0.2%
Next residue up to RM7 mil = 0.167%
Next residue up to RM15 mil = 0.125%
Next residue up to RM50 mil = 0.10%
Next residue up to RM200 mil = 0.067%
Next residue up to RM500 mil = 0.05%
Next residue more than RM500 mil = 0.04%
Note:
- Effective from 1st October 2009, valuation fee is subject to a minimum fee of RM 400 per property.
- Disbursement Fees and other additional fees may incurred.
iv) Real Estate Agent's Fee
If you engage a real estate agent to help you to looking for a house, fee of 2% (+ 6% GST) is chargeable.
Please take note that the type of charges and the amount charged might change in the future.
Please meet with financial institution's loan officer for further
advice and discussion regarding type of fees and legal services.
