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A foreigner can get financing in Malaysia, just not the way most people assume. Three things are different, and each one changes how much cash you need on day one.
Your situation is different? Ask me on WhatsApp. I reply myself, usually the same day.
Ask Jason on WhatsApp1. A lower margin of finance
Malaysians can borrow up to 90% of the price on their first homes. Foreign buyers should expect around 60–70%. Some banks go up to 80% for buyers married to a Malaysian or holding certain long-term visas, such as MM2H, but that is at each bank’s discretion. The gap changes your entire cash plan:
| RM1,000,000 property | 90% loan | 70% loan | 60% loan |
|---|---|---|---|
| Loan amount | RM900,000 | RM700,000 | RM600,000 |
| Down payment in cash | RM100,000 | RM300,000 | RM400,000 |
2. More documents, and fewer banks
Expect the bank to ask for:
- At least three months of payslips
- Tax records from your home country
- Bank statements showing you could cover 6 to 12 months of instalments from savings alone
- Your passport, and visa or residence documents where relevant
And not every bank lends to foreigners. It is a short list, so the right introduction saves weeks.
3. 8% stamp duty, paid in cash
From 1 January 2026, foreign buyers pay a flat 8% stamp duty on the transfer of residential property, up from 4%. This is on top of your down payment, not part of it, and the loan will not cover it. There is also stamp duty on the loan agreement itself (0.5% of the loan amount).
| Cash needed on a RM1,000,000 property with a 70% loan | Amount |
|---|---|
| Down payment (30%) | RM300,000 |
| Stamp duty on the transfer (8%) | RM80,000 |
| Stamp duty on the loan agreement (0.5% of RM700,000) | RM3,500 |
| Total before legal fees and state consent costs | RM383,500 |
Sort out financing before you search
The biggest delays I see are not property problems. They are financing assumptions made too late. Get the financing conversation done before the property search, not after. I run this check first with every new client. For the full picture on margins, income haircuts and which banks lend, read Getting a Malaysian home loan as a foreign buyer.
Want to know what you can borrow as a foreign buyer? Message me and I will connect you with a banker who works with foreign applicants.
Source: 8% foreigner stamp duty from 1 January 2026. General information, not financial advice. Margins, documents and approval are at each bank’s discretion. By Jason Lim (REN 84424, IQI Realty Sdn. Bhd.).