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Stamp Duty Calculation

For instance, when purchasing a property which costs RM700,000, you will have to pay a total of:

{(First RM100,000 X 1%) + (Next RM400,000 X 2%) + (Remaining RM200,000 X 3%) } + 0.5% of loan amount (90% of RM700,000)
= {RM1,000 + RM8,000 + RM6,000} + 0.5% X (RM630,000)
= RM15,000 + RM3,150
=RM18150

## 2) Legal Fees

Legal fee for SPA = Based on property price

Legal fee for LA = Based on loan amount

The legal fee rates in Malaysia are as below:

If you are purchasing a property which costs RM700,000, you will have to pay a total of:

(First RM500,000 X 1%) + (Next RM200,000 X 0.8%)
= RM5,000 + RM1,600
= RM6,600

Some developers may absorb the legal fee.

## 3) Memorandum of Transfer (MOT)

Memorandum of Transfer (MOT) is a process where you’re going to sign a document that indicates the property is yours.

MOT Legal fee = 25% of SPA legal fee and LA legal fee

MOT Stamp Duty = based on SPA

## 4) Home Insurance

One of the home insurance is Mortgage Reducing Term Assurance (MRTA) and its costs are dependent on the age of the borrower (usually the older the borrower, the higher the MRTA) and the total mortgage on the property (usually estimated at 3% to 5% of the total mortgage).

Buyers can also consider Mortgage Level Term Assurance (MLTA), which offers the repayment of your outstanding home loan as well as a guaranteed cash value back at the end of the scheme.

## EXPENSES ON BUYING NEW PROPERTY

Before Vacant Possession

1. Booking Fee

2. Downpayment

3. Legal Fees

4. Stamp Duty

5. MOT

6. Property Valuation Fee

7. Property Agent Professional Fee

8. MRTA/MLTA

After Vacant Possession

1. Management fee and sinking fund

2. Utility Deposit

3. Renovation cost

4. Quit Rent

5. Assessment