Ownership Options
- FREEHOLD
Freehold property belongs to the owner in perpetuity. Transfer of interest in the property can proceed without any restrictions or approvals from the state authority. - LEASEHOLD
Land leased by the government for a specific term, most commonly in the duration up to 99 years. Transfer of interest of property to another party may require state authority approval. - INDIVIDUAL
Issued for properties built on individual plots of land that is sub-divided horizontally. - STRATA
A form of ownership commonly apply to residential and commercial multi-storey buildings, as well as landed properties within a gated community. Strata title properties comprise individual lots owned by individual owners and common properties.
Loan Application Procedure
You may opt for loan application with our appointed panel bankers or choose any bank/finance institution of your choice. You are required to provide the following documents for the loan application.
Employed Applicants
- Booking proforma of the property purchased
- Title deed of the property purchased
- Photocopy of identity card (for Malaysians) or passport (for non-Malaysians)
- Latest 3 months payslips
- Latest 3 months bank account statements indicating salary credited
- Latest tax assessment form
- Latest EPF statement
- Other documents as may be required by bank/finance institution
Self-Employed Applicants
- Booking proforma of the property purchased
- Title deed of the property purchased
- Photocopy of identity card (for Malaysians) or passport (for non-Malaysians)
- Company Registration Forms i.e Form 24 and Form 49 or other relevant forms
- Latest financial statements
- Latest 3 months bank statements
- Latest tax assessment form
- Other documents as may be required by bank/finance institution
Criteria for Loan Application & Approval
In order to qualify for loan financing, you are to fulfill the following criteria:
- Has stable income
- Age not exceeding 55 years old
- Monthly installment of the property purchased including current commitments e.g car loan, personal loan and others should not exceed one-third of the monthly income
Sequence of Loan Processing
You may opt for loan application with our appointed panel bankers or choose any bank/finance institution of your choice. You are required to provide the following documents for the loan application.
- Buyer Submission of loan application form with required documents.
- Bank Loan evaluation by bank/finance institution.
- Buyer Signing of LO as acceptance of the offer. One copy of the signed LO will be kept by the bank and another copy will be forwarded to the developer.
- Bank Bank/Finance institution to instruct appointed solicitor for loan documentation arrangement:
- Deed of Assignment and Loan Arrangement (for Strata Units); or
- Memorandum of Transfer Form 14A and Charge Form (Landed units with individual titles).
- Bank Issuance of notification letter on execution of loan documents at solicitor’s office.
- Buyer Execution of loan documents at solicitor’s office.
- Solicitor Executed loan documents returned to solicitor for stamping and registration. Stamped loan documents forwarded to bank/finance institution for safe keeping. A copy each is given to purchaser and developer.
- Bank Bank/finance institution to release payments to developer progressively in accordance to the Third Schedule of the Sale and Purchase Agreement upon receipt of developer’s billing.
EPF Withdrawal Procedure
EPF withdrawal is permissible to only residential properties purchase and only for one residential property per member.
Requirement
You must be a member of EPF.
Entitlement
You are entitled to withdraw not more than 30% of your overall EPF account or 100% of balance available in your EPF account II.
Procedure
You are required to submit the following documents to EPF for withdrawal application:
- EPF withdrawal form
- Original copy of Sale and Purchase Agreement
- Photocopy of identity card
- A copy of the letter of loan approval from end-financier
Mode of Payment
The payment will be released directly to the member within one month from date of application submission. For more information, please refer to EPF website at www.kwsp.gov.my.
Real Property Gain Tax (RPGT)
With effect from 1st January 2019, the disposal of properties in Malaysia is subjected to following rate of RPGT:
Disposal Period* | RPGT Rates | ||
---|---|---|---|
Companies | Individual (Citizen/PR) | Individual (Non-Citizen*) | |
For disposal within 3 years | 30% | 30% | 30% |
For disposal within 4th year | 20% | 20% | 30% |
For disposal within 5th year | 15% | 15% | 30% |
For disposal within 6th year and subsequent year | 10% | 5% | 10% |
*The holding period of 3, 4, 5 and 6 years refer to the period between the date of the acquisition of the property and the date of disposal of such property.
*Individual of non-citizen includes all expatriates working in Malaysia & MM2H visa holders.
Exemptions:
- RPGT exemption on gains from the disposal of one residential property once in a lifetime to individuals;
- RPGT exemption of up to RM10,000 or 10% of the net gains, (whichever is higher) from the disposal of real property by individuals;
- RPGT exemption on gains arising from the disposal of real property between family members (e.g. husband and wife, parents and children, and grandparents and grandchildren).