House loan: Common Fees

Home loan applications do not go by just filling a form and submitting them. Among all other elements of house loan applications, here are some common fees and charges applied.

While you should always consult your home or house loan officer regarding matters home loan application like fees and charges, keep in mind that sometimes calculating on your own might do you some good in the long run — To better understand where your RM300,000 or RM1,000,000 goes to when it comes to Malaysia property & real estate terms.

Among the common fees and charges are:

Professional Legal Fees

Information for S&P (Sales & Purchase) and Loan Agreement

  • For the first RM150,000 the rate will be 1.0%, bearing a minimum of RM3000.
  • For the next RM850,000 the rate will be 0.7%.
  • Next RM2,000,000 will be 0.6%.
  • Then the next RM2,000,000 will be 0.5%.
  • Finally the next RM2,500,000 will be 0.4%
  • Anything exceeding RM7,500,000 (excess) will be negotiable, but not more than 0.4% of the excess value.

Stamp Duty
Defined as tax/duty made payable to the Stamp Office (Government) for stamping an agreement. Imposed on purchases of property (Malaysia specific). It depends very much on the loan/sales value. Applies to purchases, not sales.

  • Loan agreement – 0.5% of the loan amount. (RM0.50 Stamp Duty fee per RM100)
    This is when a new loan is acquired.
  • Transfer of title (Built)
    • First RM100,000 will be 1%
    • Next RM400,000 will be 2%
    • 3% on the excess above RM500,000
      Anything above RM500,000 will be calculated based on the excess with 3%

Disbursement Fees
Different types of fees applies, such as registration of charge fee, land search fee, bankruptcy search fee incurred by banks and solicitors attending to the particular loan documentation, in relations to the loan, payable by borrowers.

Fees vary by state, land office and type of property. Consult your loan officer to find out more. For properties in Selangor and Wilayah Persekutuan, disbursement fees can range from RM300 – RM700.

Note: For professional legal fees, charges are as per the First Schedule and Third Schedule of the Solicitors’ Remuneration Order 2006.

On the next go,  Home Loan Consultants will be covering the topic on How to Shop for Home/Housing Loans (the smart-consumer way).

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