Many Malaysians underestimate the true cost of buying a home.
On top of the deposit, there are legal fees, stamp duty, insurance and other charges that can quietly stack up, pushing the real upfront payment to nearly 15% of the property price.
This was exactly what property agent Azlan Nizam highlighted in his Facebook post, where he shared how one first-time buyer was shocked to discover the deposit alone wasn’t enough to secure his dream house.
“RM50,000 should be enough right?”
According to Azlan, a buyer spotted a RM500,000 house and confidently thought he had enough savings.
My friend saw a house priced at RM500,000. He quickly thought, ‘Okay, deposit 10%… RM50,000. Settle!’
He smiled wide, thinking he was ready. But after meeting the agent, lawyer, and banker… he was shocked. His savings weren’t enough. The actual cost wasn’t RM50,000, it could reach more than RM80,000!”
Azlan explained that many first-time buyers fall into this trap because they only calculate the deposit, forgetting about other mandatory expenses.
The extra costs you need to know
He listed out the additional costs that most buyers often overlook:
- Legal fees – to ensure the transaction is valid under the law.
- Stamp duty – a tax charged when ownership is transferred.
- Valuation fees – payment for a certified property valuer.
- Bank loan insurance (MRTA/MRTT/MLTA).
- Disbursement costs – extra charges paid to third parties as part of the process.
When combined, these can easily bring the total upfront cost to between 12% and 15% of the house price.
Example: RM300,000 house
To make things clearer, Azlan broke down the calculation for a RM300,000 property:
- Deposit (10%): RM30,000
- Legal fees: ±RM6,500
- Valuation fees: ±RM1,000
- Stamp duty (Memorandum of Transfer): RM5,000
- Loan stamp duty: RM1,350
- MRTA insurance: RM5,000
Total upfront cost: ±RM49,000
Example: RM500,000 house
- Deposit: RM50,000
- Legal fees: ±RM11,000
- Valuation fees: ±RM1,500
- Stamp duty MOT: RM9,000
- Loan stamp duty: RM2,250
- MRTA insurance: ±RM8,000
Total upfront cost: ±RM82,000
Example: RM1,000,000 house
- Deposit: RM100,000
- Legal fees: ±RM19,000
- Valuation fees: ±RM3,000
- Stamp duty MOT: RM24,000
- Loan stamp duty: RM4,500
- MRTA insurance: ±RM15,000
Total upfront cost: ±RM165,000
Don’t just budget for the deposit
Azlan stressed that Malaysians must prepare beyond the deposit before committing to buy a house.
When budgeting for a house, don’t just look at the deposit. Prepare more because other costs can easily be half of your deposit again.”
