Key Takeaways
- Most properties in Malaysia still require a 10% down payment (banks typically finance up to 90% for first homes; max tenure 35 years).
- Government-backed SJKP / SJKP-MADANI via participating banks can reduce or eliminate upfront cash. PR1MA lowers the selling price on eligible projects.
- EPF Account 2 can help cover the difference + up to 10% of the purchase cost (per EPF rules) after you’ve paid the initial amount; not for renovation/furniture.
- For subsale deals, the down payment is commonly split into an earnest deposit (2–3%) and the balance to 10% upon SPA signing. For new developer launches, booking fees before SPA are prohibited by law; the 10% is paid upon SPA.
- Start saving early with goal-based savings features and compare account profit rates.
A down payment in Malaysia is typically 10% of the property price, usually paid when you sign the Sale and Purchase Agreement (SPA). For subsale properties, you’ll often pay a small deposit earlier, then top up the rest at SPA.
But for many first-time buyers, this upfront cost feels like the biggest hurdle between browsing and actually buying.
Which is why this guide exists. We’ll simplify everything you need to know about down payments, from how much to save, to financing tips and schemes that ease the burden.
Table of Contents
What Is Down Payment?
Down payment is the upfront cost that shows you’re serious about buying property.
In Malaysia, a down payment refers to the initial portion of the property price that a buyer pays out of pocket, usually 10% of the total value.
It directly tells banks and sellers that you’re financially committed to the purchase.
How It Typically Works
Subsale: You usually pay an earnest deposit (2–3%) to a stakeholder, such as the agent or lawyer’s client account. Then, you pay the balance to make up 10% when signing the Sale and Purchase Agreement (SPA).
New Developer Launch: Developers are not allowed to collect any booking fees before SPA. You pay the full 10% deposit only when signing the SPA, as required by housing laws.
Loan Disbursement: Banks don’t release the entire loan at once. For under-construction projects, funds are disbursed stage-by-stage based on progress. For completed/subsale properties, disbursement is usually done in one go upon legal completion.
Most banks offer up to 90% financing, and loan tenure is capped at 35 years or up to age 70, whichever comes first.
Example
- Property price: RM400,000
- Total down payment: RM40,000
→ RM4,000 (booking fee) + RM36,000 (SPA balance)
Sources: Maybank2u, Bank Negara Malaysia
How Much Down Payment Do You Need in Malaysia?
In general, you will need to prepare a 10% down payment of the property’s total price. This applies whether you’re buying a new development or a subsale home, unless you’re eligible for special schemes that offer full financing.
Standard Calculation Example:
- Property Price: RM450,000
- Down Payment (10%): RM45,000
- Bank Loan (90%): RM405,000
Factors That Affect Down Payment Amount
- Type of property: High-rise vs landed vs luxury homes
- Developer offers: Some offer 0% down payment deals or rebates
- Loan approval: You may be offered only 80%–85% financing if your credit score or income is lower
- Whether it’s a new or subsale unit:
- Subsale: 2% earnest deposit + 8% SPA
- New launch: Often bundled as one payment through the developer
Watch Out for Hidden Costs
- Even with rebates, buyers may still need to cover legal fees, stamp duty, and valuation fees upfront.
- Promotions like “Zero Down Payment” may still require initial cash outlay — just packaged differently.
Read more: What Is SKU? A Simple Guide for Malaysian Business Owners
Government Schemes for First-Time Buyers
Owning your own home is part of the Malaysian dream, but rising property prices and upfront costs make it harder for many young buyers.
Thankfully, there are government-backed housing schemes designed to help you get the keys without draining your life savings.
SJKP: Housing Credit Guarantee Scheme
Helps first-time buyers, especially those without fixed payslips get housing loans approved.
- Financing: Up to 110% for homes priced ≤RM500,000 (includes legal fees, valuation, etc., depending on the bank)
- Tenure: Up to 35 years or age 70, depending on lender
- Where to Apply: Through participating banks like Maybank, Bank Muamalat, Bank Rakyat.
SJKP-MADANI Upgrade:
Offers up to 120% financing for homes priced ≤RM360,000. Can include renovation, furniture, and fittings costs.
PR1MA: Affordable Homes for Middle-Income (M40)
Developed to provide affordable city housing for Malaysian citizens.
- Price Range: RM100,000–RM400,000 (depends on project)
- Eligibility: Malaysian citizen with household income between RM2,500–RM15,000
- Pricing: Homes are often up to 20% cheaper than surrounding market price
Note: The BSN Youth Housing Scheme is no longer active as of 2025. Instead, apply via SJKP/SJKP-MADANI routes.
Using EPF to Pay for Down Payment
For many Malaysians, EPF savings are the largest form of long-term capital, and the EPF Housing Withdrawal Scheme allows you to tap into Account 2 to reduce your home-buying burden, without dipping into cash savings.
You can withdraw funds to cover:
- Down payment (the difference between the property’s price and the bank loan)
- Legal fees and stamp duty
- Mortgage insurance premiums (if required by your loan)
This applies to both new development and subsale properties.
Required Documents for EPF Withdrawal
To apply, you’ll need to submit:
- Signed Sale and Purchase Agreement (SPA)
- Bank offer/approval letter
- Stakeholder details (developer or seller’s lawyer)
- Proof of payment (earnest deposit and/or 10% deposit)
- IC and joint buyer’s info (if applicable
Most applications are processed within 14–21 working days, but expect delays during peak periods or incomplete submissions.
How the EPF Withdrawal Process Works (Step-by-Step)
- Get your home loan approved
→ Confirm the bank participates in EPF’s scheme - Pay booking fee and sign the SPA
→ Keep official receipts and stamp duty page - Apply for withdrawal via i-Akaun or EPF counter
→ Online: Login > Withdrawal > Housing > New Application
→ Offline: Make an appointment and submit documents in person - Wait for disbursement
→ EPF will transfer directly to the developer (new homes) or lawyer’s client account (subsale)
Important Notes for First-Time Buyers
- EPF can’t cover renovation or furniture, it’s strictly for home purchase-related costs. You will have to do the Ikea shopping yourself.
- If buying jointly, both buyers can withdraw from their respective Account 2 (if eligible).
- You must not withdraw beyond your available Account 2 balance.
Read more: Top 10 Water Heaters in Malaysia: Features, Safety & Prices
Tips to Save for Your First Down Payment in Malaysia
Even saving RM500/month can go a long way, if you start early and stay consistent.
For many young Malaysians, saving for a 10% down payment feels like an impossible mountain.
But with smart planning and a bit of discipline, it’s more achievable than you think.
If you start saving RM500/month at age 25, you could have around RM30,000 by age 30, enough to cover most down payments for affordable properties.
Automate Your Savings (So You Don’t Touch It)
Set up auto-deductions from your salary into a separate account you never use for spending.
- Use high-interest savings accounts like MAE Goals, CIMB OctoSavers, or BSN Giro-i
- Treat it like your “invisible” future deposit fund
Use separate accounts for “needs,” “wants,” and “house fund” so you don’t cross-budget.
Use Money Apps to Track & Grow Savings
Digital finance tools can help you grow savings passively without needing to micromanage.
- Touch ‘n Go Go+: Earn daily returns with your spare e-wallet cash
- Versa / StashAway Simple: Invest safely in low-risk funds
- MAE by Maybank: Auto-roundups and budget tracking built in
If you’re already on your phone all day, you might as well let it make you richer.
Cut Lifestyle Inflation (Even Temporarily)
That RM9 Zus coffee? It adds up. Try pausing just one indulgence per month and channel the money into your house fund.
- RM200/month cut = RM2,400/year
- Skip one overseas trip and that’s a 5–10% down payment already saved
Start a Side Hustle (Digital or Physical)
Your 9-to-5 pays the bills. Your 8-to-midnight can build your deposit.
- TikTok Affiliate / Shopee Live Sales
- Freelance gigs on Fiverr / Upwork
- Part-time Grab driver or foodpanda runner
- Print-on-demand, dropshipping, or selling pre-loved items
Even RM300/month from a side hustle adds RM3,600 a year, that’s your SPA payment sorted.
Joint Ownership = Shared Burden, Shared Dream
If you’re buying with your spouse, sibling, or close family, you can split the deposit.
- RM450,000 property = RM45,000 down payment
→ RM22,500 each if you co-buy - Both buyers can withdraw from EPF Account 2, reducing cash even further
BUT, Do Not Skip This Part:
- Make sure the joint ownership structure is clearly spelled out in the SPA (Sale and Purchase Agreement).
- Consult a lawyer to include co-ownership clauses or exit terms.
Never rely on verbal agreements, even with family. If something goes wrong (death, divorce, disagreement), your legal ownership must be protected in writing.
“Trust is good, but legal documents are better.”
Conclusion: Planning Your Down Payment Is Just the First Step
Buying a home is a milestone. But if you’re a real estate agent, loan officer, or property developer, helping buyers find you online is just as crucial.
That’s where we come in.
At Rankpage, we help property professionals get found on Google Maps, dominate “near me” searches, and appear in voice search results.
Whether you’re in real estate, finance, or home services, our Local SEO services connect you with high-intent local customers.
Ready to turn searchers into buyers? Work with us, and we will get your sorted!
Frequently Asked Questions About Down Payment in Malaysia
What Is The Minimum Down Payment For A House In Malaysia?
The minimum down payment is typically 10% of the property’s price for most buyers.
Can I Buy A House With No Down Payment?
Yes, if you qualify for SJKP or SJKP-MADANI, banks may offer up to 110%–120% financing.
Can EPF Account 2 be used for a down payment?
Yes, but EPF expects you to pay first and reimburse yourself later under their withdrawal formula.
How Long Does EPF Housing Withdrawal Take?
It typically takes 2–3 weeks to process once all documents are submitted.
Is PR1MA cheaper than market price?
Usually up to 20% lower, but this varies by project and location. Always check with PR1MA directly.
Can Two People Buy A House Together In Malaysia?
Yes, joint ownership is allowed between spouses or family members to improve affordability. But please, get a signed agreement, verbal trust is NOT enough.
