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Ever wondered why it’s called a “down payment” even though you pay it up front? We don’t have the answer to that, but what we do know is buying a property comes with many costs, and the down payment is usually the biggest one. Since it’s a large sum you need to pay right away, you’ll want to make sure you’ve saved enough before moving forward. If not, you could miss out on your dream home. Before you start putting money aside, here are some common questions and key things to understand about property down payment in Malaysia.
A property down payment is the first major payment you make when buying a home. It’s a required upfront amount that confirms your intent to purchase the property. Whether you’re buying from a developer (primary market) or a previous owner (secondary market), this payment goes directly to the seller or developer to secure the deal.
In Malaysia, the standard downpayment is usually 10% of the property’s price. However, the exact amount can vary depending on your loan eligibility or if you’re joining a government housing scheme.
Example:
According to Bank Negara Malaysia (BNM), first-time homebuyers can get up to 90% loan financing. For your second home, the maximum loan drops to 80%, and for your third home, it goes down to 70%.
These rates apply only to residential properties. If you’re buying a third property, you might have better luck getting a higher loan if it’s under a commercial title.
Yes, you can! If you have extra savings, paying more up front reduces the amount you need to borrow from the bank.
For example, instead of paying a 10% down payment of RM60,000, you could choose to pay RM100,000. This means your loan amount drops to RM500,000.
With a smaller loan, you’ll pay less interest over time, enjoy lower monthly instalments, and might even finish paying off your home loan sooner.
Yes, if your bank savings aren’t enough, you can use your EPF (KWSP) Account 2 to help with the downpayment. This is allowed for residential properties only.
You can use the withdrawn amount to buy a new property from a developer, a subsale home, or even an auction unit, as long as both you and the property meet the EPF withdrawal requirements.
When you sign the Sale and Purchase Agreement (SPA), your lawyer will walk you through the terms, including one important clause: if you back out of the purchase, the down payment is usually non-refundable, and you may also face a penalty fee.
That’s why it’s important to be sure about your decision before signing the SPA. On the flip side, if the seller or developer cancels the SPA, they’ll also have to pay a penalty fee. No matter who backs out, cancelling the agreement can be expensive and time-consuming. So, make sure you’re fully ready before signing—because once it’s done, there’s no turning back.
No, you don’t. Viewing a house is completely free, you shouldn’t be asked to pay any booking or reservation fees just to take a look. If someone asks for money to view a property, it’s likely a scam. Stop all communication, block the person, and report them to the police or the real estate agency involved.
If you’re buying a new property, some developers may waive or reduce the down payment and other costs to make buying easier. It’s also worth checking for government housing schemes or first-home buyer programmes from banks that offer lower downpayment options.
To save more for your down payment, try to budget wisely, increase your income, or cut back on unnecessary expenses. The key is to grow the gap between what you earn and what you spend, so plan smart and stay consistent.
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From residential to commercial projects, Berinda focuses on quality, sustainability, and creating vibrant communities. Whether you’re a first-time buyer or an investor, you’ll find thoughtful designs and lasting value in every project.
Start your journey with Berinda and discover homes built for life across Johor Bahru. Explore our latest developments today.
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