Update, 17 October 2026 (Budget 2027): Budget 2027 proposes that first homes up to RM750,000 with an SPA signed from 1 January 2027 to 31 December 2030 get stamp duty relief on the MOT and loan agreement: a full exemption on the first RM500,000 of the price and 50% on the rest. It is still a proposal until the exemption order is gazetted. For SPAs signed in 2026, the steps in this guide still apply: full exemption up to RM500,000 and none above it. What Budget 2027 changes for JB buyers.
This guide is for Malaysians buying their first home in Johor Bahru in late 2026. The short answer: a first home up to RM500,000 is exempt from stamp duty until the end of 2027, Johor voters can apply for state affordable homes on the eRumah Johor portal, and a RM450,000 home needs roughly RM57,500 in cash before the keys, part of which EPF can refund.
The first-home stamp duty exemption
Two stamp duty exemption orders cover first homes: one for the memorandum of transfer and one for the loan agreement. Both were extended in December 2025 and now apply to sale and purchase agreements (SPAs) signed up to 31 December 2027. The conditions:
- The buyer or co-buyer is a Malaysian citizen.
- It is your first residential property.
- The market value is RM500,000 or less. Above that, there is no partial relief under the current orders.
- For the loan agreement, the loan comes from one of the financial institutions named in the order.
Budget 2027, tabled on 9 October 2026, proposes going further for SPAs signed from 1 January 2027 to 31 December 2030: full exemption up to RM500,000, and for homes up to RM750,000, full exemption on the first RM500,000 and 50% on the rest. This is still a proposal until it is gazetted. My stamp duty article has worked examples at other prices.
Johor state affordable homes (RMMJ)
Rumah Mampu Milik Johor (RMMJ) is the state’s affordable home programme, run through the Johor Housing Development Corporation (PKPJ). The state says more than 21,000 units were handed over between 2022 and early 2026. Its largest current project, in Iskandar Puteri, has units at RM150,000, RM250,000 and RM300,000.
- Who can apply: buyers must be Johor voters, according to the state housing committee chairman. Income limits and ownership rules differ by price category, so check the category you want on the portal before applying.
- How to apply: online through the eRumah Johor portal. Eligible applicants are screened and then picked by open ballot; successful ones receive a certificate of eligibility to own (SLMR).
- Financing help: PKPJ’s J-Home One Stop Centre puts developers, banks, lawyers and AKPK in one place.
Applying is free. The state has warned about fake agents taking deposits to “secure” units: 20 complaints and RM155,000 lost in 2023. Deal only with PKPJ.
Johor’s 2026 budget also funds Perumahan Kasih Johor, with a RM5,000 first-home purchase aid and a RM2,000 move-in aid through PKPJ. Reports differ on the price ceiling (RM500,000 in February 2026, RM650,000 in an NST report in May 2026), so confirm with PKPJ.
PR1MA and SJKP
PR1MA is still operating; it appointed a new group CEO from 1 January 2026. It has targeted Malaysians aged 21 and above with household incomes of RM2,500 to RM15,000 a month.
Skim Jaminan Kredit Perumahan (SJKP) is a government guarantee that lets banks lend to first-time buyers without a fixed salary, such as e-hailing drivers, hawkers and small business owners. Budget 2027 keeps RM20 billion of guarantees for about 80,000 buyers. Under the terms reported in April 2026:
- Malaysian citizen, 18 or older, buying a first home to live in.
- Maximum financing of RM500,000 (RM360,000 under SJKP MADANI).
- Total monthly debt, including the new loan, generally within 65% of gross income, and a clean recent credit record.
- You apply through a participating bank, not SJKP, with bank statements showing regular income.
Whatever scheme you use, the bank still assesses your debt service ratio. If you are unsure you will qualify, read my guide on why housing loans get rejected.
Using your EPF for the purchase
Since May 2024, EPF contributions are split into Akaun Persaraan (75%), Akaun Sejahtera (15%) and Akaun Fleksibel (10%). Housing withdrawals come from Akaun Sejahtera. For a home bought with a loan, you can withdraw the difference between the price and the loan plus 10% of the price, or your whole Akaun Sejahtera balance, whichever is lower.
Two points catch buyers out: you pay the 10% deposit from your own money first, and the SPA must be under three years old when you apply. Akaun Fleksibel can be withdrawn for any purpose.
Worked example: cash needed for a RM450,000 home
Here is the same logic my buying costs calculator uses, for a RM450,000 subsale home in JB with a 90% loan of RM405,000. Legal fees follow the scale of 1.25% on the first RM500,000, with 8% service tax on top.
| Item | First home (exempt) | Not first home |
|---|---|---|
| Down payment (10%) | RM45,000 | RM45,000 |
| Stamp duty on transfer | RM0 | RM8,000 |
| Stamp duty on loan agreement (0.5%) | RM0 | RM2,025 |
| Legal fee: SPA (1.25%) | RM5,625 | RM5,625 |
| Legal fee: loan agreement (1.25%) | RM5,063 | RM5,063 |
| Service tax on legal fees (8%) | RM855 | RM855 |
| Valuation fee (0.25% on first RM100,000, 0.2% on the rest) | RM950 | RM950 |
| Total before disbursements | RM57,493 | RM67,518 |
The exemption saves this buyer about RM10,000. Under the EPF formula, the same buyer could later ask for up to RM90,000 (the RM45,000 gap plus 10% of the price) from Akaun Sejahtera, limited by what is actually in the account. For a new launch, ask the developer and your lawyer for a written breakdown.
Restrictions you will meet in JB
- Resale moratorium on RMMJ. Since 1 January 2023, RMMJ homes priced at RM150,000 or below cannot be sold to a third party for 10 years from purchase; the Land Office will not register the transfer. Plan to live in the home.
- Bumiputera lots. Selling one later to a non-Bumiputera needs state approval, which can be slow, so it can be harder to resell.
- Malay Reserve land. It can only be owned by Malays and is almost never released, so non-Malay buyers cannot buy it at all. Your lawyer’s land search shows this.
- PR1MA homes carry their own resale restriction set in the SPA. Read it before you sign.
For the full list of fees on the legal side, see my legal fees guide.
The steps, in order
- Work out your budget and debt service ratio, and get a bank’s indicative approval.
- If you qualify, register on eRumah Johor; ballots take time.
- Choose the home and check it is your first, under RM500,000 if you want the stamp duty exemption, and not a restricted title.
- Pay the booking fee, then the balance of the 10% deposit when you sign the SPA.
- Sign the loan agreement and apply for the EPF Akaun Sejahtera withdrawal.
- Complete the purchase, collect the keys, and claim any Johor move-in aid you qualify for.
Questions about your situation?
Tell me your budget, where in JB you are looking and how you are paid, and I will help you work out which schemes fit.
Sources: Skrine, “Five Stamp Duty Exemption Orders Extended”, January 2026; Bernama, “Belanjawan 2027: Jaminan Pembiayaan Perumahan RM20 Bilion, Bantu 80,000 Pembeli Rumah Pertama”, October 2026; Dewan Negeri Johor, “Soalan Lisan Yang Tidak Habis Dijawab Pada Hari Rabu 6 Mei 2026”, May 2026; Utusan Malaysia, “Exco negeri nafi dakwaan Anwar pembangunan rumah mampu milik Johor lembap”, July 2026; Sinar Harian, “20 aduan penipuan scammer RMMJ babit kerugian RM155,000 – Exco”, October 2024; EdgeProp, “Johor affordable houses can now only be sold after 10 years”, March 2023; The Iskandarian, “Housing assistance initiatives rolled out in Johor”, February 2026; New Straits Times, “RM157m push to ease rising home pressure”, May 2026; RinggitPlus, “Bagaimana Skim Jaminan Kredit Perumahan membantu pembeli rumah pertama tanpa pendapatan tetap”, April 2026; Bernama, “PR1MA Appoints Brian Iskandar Zulkarim as its Group CEO”, February 2026; Free Malaysia Today, “Lower income limit for PR1MA home ownership, MP tells govt”, September 2023; KWSP (EPF), “Buy House withdrawal”, checked October 2026; KWSP (EPF), “6 types of EPF housing withdrawal”, October 2023; RinggitPlus, “Panduan lengkap akaun KWSP dan perkembangan baharu pada 2026”, May 2026; EdgeProp, “Costs involved in buying property in Malaysia”, October 2025; KPMG Malaysia, “Proposed increase in service tax rate and expansion of taxable services”, January 2024; StarProperty, “What you need to know about Malay Reserve Land and Bumiputera Land”, July 2019
Jason Lim, REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6. General information checked on 16 October 2026, not legal, tax or financial advice.