First-time home buyers may not know it; but buying and financing a home takes more than just the deposit and the loan, it also involves miscellaneous fees and charges that include, among others:
1. Stamp duty for transfer of ownership title (also known as memorandum of transfer or MOT) = 1% for the first RM100,000; 2% on the next RM400,000, and 3% on the subsequent amount.
2. Sale & Purchase Agreement (“SPA”) legal fees = 1% for first RM150,000 and 0.7% of remaining value of property within RM1 million
3. Stamping for SPA = Less than a hundred Ringgit
4. SPA legal disbursement fee = A few hundred Ringgit
5. Loan facility agreement legal fees = 1% for first RM150,000 and 0.7% of remaining value of loan within RM1 million
6. Stamp duty for loan = 0.5% of loan amount
7. Loan Facility Agreement legal disbursement fee = A few hundred Ringgit
8. Fee for transfer of ownership title = A few hundred Ringgit
9. Mortgage Reducing Term Insurance (ie. think of it as a life insurance for your home loan) = RM1,000 or more (some banks waive this amount)
10. Government Tax on Agreements = 6% of total lawyer fees
11. Bank processing fee for loan = RM200
*Note: The percentages are based on recommended numbers and industry averages. Actual figures may differ.
To put things into perspective, a home valued at RM400,000 with 90% margin of financing comes close to about RM20,000 in fees and charges – which will have to be borne by you, the buyer. Now consider this: do you have the money to make it happen?
Calculator:
Based on the above:
I need to refinance my current house or top up loan:
Fees that I need to pay:
My loan amount: RM 187k
Legal fees:
1% of 1st 150k, = RM 1500,
there after 0.07% (37k) = RM 259
Disbursement (misc, photos tat, transport) : RM 600
Service Tax (6%) = RM 105.54
Stamp duty: (0.5%) = RM 935
Total: RM 3399.54
Another fees that I have to pay is Valuation Fees:
Valuation fee
| |||
Fee for other capital valuation /rating valuation services based on an 'Improved Value' basis 1
|
1/4% of the first RM100,000
| ||
1/5% of the residue up to RM2 million
| |||
1/6% of the residue up to RM7 million
| |||
1/8% of the residue up to RM15 million
| |||
1/10% of the residue up to RM50 million
| |||
1/15% of the residue up to RM200 million
| |||
1/20% of the residue up to RM500 million
| |||
1/25% of the residue over RM500 million
| |||
Valuation Calculator:
My Property, the VALUATOR agent value at RM 360k ( Why I only loan RM 187k because I still have outstanding amount with the bank)
1st 100k = 0.025* 100k = RM 250
Subsequent 260k, = 0.02*260k = RM 520
Disbursement (misc, transport, photostat, etc) = RM 600
Government service tax (6%) = 82.20
Total: RM 1452.20