How it is calculated
- Loan = price − down payment
- Instalment = loan × r ÷ (1 − (1 + r)^−n), where r is the yearly rate ÷ 12 and n is the number of months (reducing balance)
- Other monthly costs = quit rent ÷ 12 + assessment × 2 ÷ 12 + maintenance + sinking fund + insurance ÷ 12
- Monthly cost of ownership = instalment + other monthly costs
Legal fees use the Solicitors’ Remuneration Order 2023 scale, in force since 15 July 2023 in Peninsular Malaysia: 1.25% on the first RM500,000 (minimum RM500) and 1% on the next RM7 million, applied to the price (SPA) and to the loan (loan agreement). Treat these as indicative. Stamp duty uses the same logic as our stamp duty calculator, including the first-home exemption.
Cash needed upfront = down payment + both legal fees + stamp duty. To check the loan instalment alone, see the home loan calculator.
Worked example
A RM500,000 home with 20% down, a RM400,000 loan at 4% for 30 years, citizen, not a first home:
- Instalment: RM1,909.66 a month
- Other costs: quit rent RM120 a year, assessment RM300 a half-year, maintenance RM250, sinking fund RM25, insurance RM1,200 a year = RM10 + RM50 + RM250 + RM25 + RM100 = RM435 a month
- Monthly cost of ownership: RM2,344.66
- Legal fees: SPA RM6,250, loan RM400,000 × 1.25% = RM5,000
- Stamp duty: RM9,000 + RM2,000 = RM11,000
- Cash needed upfront: RM100,000 + RM6,250 + RM5,000 + RM11,000 = RM122,250
With a 25% discount, the SPA fee on a RM300,000 home is RM3,750 × 0.75 = RM2,812.50.
Why your number may differ
The legal fee scale is indicative and excludes disbursements and tax. Lawyers may discount, and fees outside Peninsular Malaysia may differ. Your bank’s rate can change over the tenure, and valuation, renovation, furnishing and moving costs are not included. Running costs are your own figures.