Owning a home is different than dreaming for it. And what makes it different is the additional cost comes with it. You have agreed for a loan amount and signed all the documents. If you think that’s it needed to be done for buying a home in Malaysia, you are probably wrong or you don’t know about the additional cost. Well, we don’t want you to end up paying additional expense that ruins your dream of living peacefully in your dream home. Upon reading this guide you will understand what all costs come along with your home loan.

house spa and legal fee calculate

Additional costs come up in form of legal fees with your SPA that is sales and purchase agreement. And every buyer must know about these costs.

Check out the latest sales and purchase agreement fees

Buying a property for the first time is an exciting feeling but it can soon turned into stress if you are unaware about these costs:

  • Legal fees that you have to pay on your loan agreement and SPA
  • Commission of your real estate agent
  • Stamp duty fees

If you have made budget already without involving these costs then reconsider your budget before buying a property. Now you probable will think that how would I know about the rates. Don’t worry as we have covered everything just for you.

SPA fees- this varies with amount. For instance, if you pay first RM 500,000 then SPA fees will be only one percent. It would be 0.8 percent for the next amount and further reduce to 0.5 to 0.7 percent for the next amount.

Loan agreement fees- this also starts with one percent on first RM500, 000 and gradually decreases with subsequent amounts.

Stamp duty fees- unlike the above two fees, stamp duty fees increase with subsequent amount. For instance if you pay RM 100,000 then it’s one percent and two percent for RM 100,001-500,000. And for amount up to RM 1,000,000 its three percent and above it, the fee is four percent.

You have to consider all these costs as well. But if you think that’s it then you are again going wrong. There are additional fees as well like SPA legal disbursement fee, title ownership transfer fees, government tax, bank processing fees, and legal disbursement fee for loan facility agreement.

There is more than this that buyers should know.

Valuation fees- this is a fee taken by the bank on your property. They will not easily approve your loan without evaluating your property. And the bad part is that they will charge you some money in form of fees for evaluating your property.

Insurance- fortunately or unfortunately, banks will ask you to take home insurance. Usually this is good for your home but don’t forget that it comes with an additional expense. You can either opt for MRTA or MLTA. But before going with any of these options you must know well about this home insurance coverage.

Lastly, you should never forget the cost of renovations even if your property is new. This further adds up to your additional expenses.