Version: CN
The Home Ownership Program (HOC) was a hot topic among first-time home buyers. However, in July 2022, the government announced a new home purchase policy, the Malaysian Home Ownership Initiative (i-MILIKI), to help first-time homebuyers reduce the burden of buying a home.
i-MILIKI is also called “HOC 2.0” by many people in the industry, since both offers the same relief measure, which is the stamp duty exemption. Curious to know more about i-MILIKI? Discover its special features here!
| 1. What is i-MILIKI? 2. Advantages of i-MILIKI 3. i-MILIKI eligibility 4. Differences between i-MILIKI and HOC |
1. What is i-MILIKI?
The Malaysian Home Ownership Initiative (i-MILIKI) is a new home ownership program launched by the government, which aims to provide sufficient affordable and quality housing for young people and low- and middle-income groups in Malaysia.
First-time homebuyers who purchase a home through the i-MILIKI initiative will enjoy two tax deductions:
-
Stamp Duty Exemption for Loan Contracts
-
Stamp Duty Exemption on Assignment Deeds
So, how can first-time buyers enjoy these two stamp duty reductions?
- Purchasing a house below RM500,000: 100% stamp duty exemption
- Purchasing a house from RM500,000 to RM1 million: 50% stamp duty exemption
However, the i-MILIKI initiative is limited within the period of June 1, 2022 to December 31, 2023, and discounts can be enjoyed by signing the Sales and Purchase Agreement (SPA).
As long as first-time homebuyers purchase new real estate projects, or homes by developers participating in this initiative, they can enjoy these i-MILIKI discounts.
Do note that this initiative is limited to residential-titled properties. Commercial-titled and commercial-titled under HDA properties (e.g. SOHO, serviced apartments) are not covered.
2. What are the benefits of i-MILIKI for first-time homebuyers?
The implementation of i-MILIKI has undoubtedly brought the dawn of “buying a house to save money” for first-time buyers.
With this effort to reduce stamp duties, first-time homebuyers get to have a lower burden of buying a house, making it easier for them to own a home.
How does the government help first-time homebuyers save money through the i-MILIKI initiative?
First of all, let’s go through the stamp duty rates stipulated by the government:
| House price | Stamp duty rate |
| First RM100,000 | 1% |
| RM100,001 to RM500,000 | 2% |
| RM500,001 to RM1,000,000 | 3% |
| RM1,000,001 or above | 4% |
As for the stamp duty on loan contracts, the stamp duty rate stipulated by the government is 0.5% of the loan amount.
Which means, if you buy a house priced at RM500,000 through the i-MILIKI initiative, you can save up to RM11,250!
| Price: RM500,000 |
| 10% home loan: RM500,000 x 10% = RM450,000 |
| Transfer Deed Stamp Duty: (RM100,000 x 1%) + (RM400,000 x 2%）
= RM1,000 + RM8,000 = RM9,000 |
| Stamp duty on loan contract (0.5%)：RM450,000 x 0.5% = RM2,250 |
| 100% stamp duty exemption: RM9,000 + RM2,250 = RM11,250 |
If you’re purchasing a home at the price of RM 700,000:
| Price: RM700,000 |
| 10% home loan: RM700,000 x 10% = RM630,000 |
| Transfer Deed Stamp Duty:（RM100,000 x 1%）+（RM500,000 x 2%）+（RM100,000 x 3%）
= RM1,000 + RM10,000 + RM3,000 = RM14,000 |
| Stamp duty on loan contract (0.5%): RM630,000 x 0.5% = RM3,150 |
| Total Stamp Duty: RM14,000 + RM3,150 = RM17,150
50% stamp duty exemption: RM17,150 x 50% = RM8,575 |
You will only be paying the remaining stamp duty of RM8,575 to the government!
3. What are the eligibility requirements for i-MILIKI?
With this new stamp duty exemption initiative, the i-MILIKI comes with its set of eligibility requirements:
- Only eligible for residential-titled homes.
- Only eligible for new projects.
- Only selected property purchase documents are exempted from stamp duty.
- 100% stamp duty exemption only for homes with specific prices.
4. What is the difference between i-MILIKI and HOC?
i-MILIKI is popularly known as “HOC 2.0”, since they both mainly allow first-time homebuyers to reduce the burden of buying a house by enjoying a stamp duty exemption.
However, they are two different programs, so the measures are still different:
| i-MILIKI | HOC |
Stamp Duty Exemption:
|
Stamp Duty Exemption:
100% stamp duty exemption for owner-occupied houses with purchase price of RM1,000,000, including:
|
Type of house title:
|
Type of house title:
|
| Room rate discount: None | Discount on house price: 10% discount on all |
| 3rd house loan amount: None | 3rd house loan amount: 90% (only for houses with a price of RM600,000) |
Although i-MILIKI does not have as many discounts as HOC plans, but buying a house through the i-MILIKI initiative can still save you a lot of money!
It also means that you don’t need to feel pressured to pay for the 10% down payment on a home on top of the additional costs of purchasing a home.
Moreover, you can also calculate your affordability in advance, and then combine with the discount of i-MILIKI, and you’ll find that you may be able to buy your favorite property, or a house that’s closest to your needs!
If you missed the HOC program last year and are ready to buy a home, don’t miss out on this i-MILIKI initiative!
Unsure which new projects are involved in i-MILIKI? Come and consult IQI’s real estate agents who will provide you with professional and comprehensive buying advice, so that you can quickly find your dream home!
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