loader-logo

The Home Ownership Campaign (HOC) Is Back

What was the Home Ownership Campaign – HOC about ?

The HOC was a government initiative designed to support home buyers looking to purchase property. At the same time, it also encouraged the sales of unsold properties in Malaysia’s housing market.

With growing desire for home ownership among-st Malaysians, particularly in popular urban areas, the HOC initiative was designed to match aspiring home-seekers with all those empty homes.

The Home Ownership Campaign (HOC), which ran throughout 2019, was designed to encourage the increase in home ownership among Malaysians. And now, it’s back again from June 2020 till 2021.

 

The financial incentives & benefit that were offered as part of the scheme.

Full stamp duty exemption till RM1 million

Under the scheme, successful applicants enjoyed 100% stamp duty exemption on Instrument of Transfer for any residential home purchase up to the value of RM1 million.

Partial stamp duty exemption till RM2.5 million

For properties worth more than RM1 million up to RM2.5 million, you paid 3% stamp duty on the Instrument of Transfer for the amount that’s more than RM1 million.

Property PriceStamp duty
First RM100,000Exempted
RM100,001 to RM500,000Exempted
RM500,001 to RM1,000,000Exempted
Rm1,000,001 to RM2,500,0003% instead of 4 %

How do you save on it ?

assume your property purchased price was RM500,000 in between with & without HOC scheme.

without HOCwith HOC
Down payment (500,000 x 10%) RM50,000RM0
Stamp duty on loan (450,000 x 0.5%)RM2,250RM0
Stamp duty on MOT (100,000 x 1% +
350,000 x 2 %)
RM8,000RM0
Total costRm60,250RM0
Comparison chat

Stamp duty exemption on the instruments of transfer and loan agreement for the purchase of residential homes priced between RM300,000 to RM2.5 million (subject to at least 10% discount provided by the developer).

The exemption on the instrument of transfer is limited to the first RM1 million of the property price, while full stamp duty exemption is given on loan agreement effective for Sale and Purchase Agreement (SPA) signed between 1st June 2020 to 31st May 2021.

Instruments on secure loan exemptions.

All properties within the scheme enjoyed a further stamp duty exemption on the Instrument of Securing Loan up to Rm2,500,000 purchase price.

Eligibility (term & conditions)

The Home Ownership Campaign covered registered residential properties with a value between RM300,000 and RM2.5 million. Those properties must be registered with the relevant authority for each region. it’s important to note that properties classified as a SoHo, SoFo, or SoVo were not qualified for the HOC either.

Eligibility only applies to those registered residential properties listed by developers within the scheme. covered registered residential properties with a value between RM300,000 and RM2.5 million. Those properties must be registered with the relevant authority for each region.

Know more about home ownership campaign 2020

Know more about home ownership campaign 2020

Does it apply to secondary markets?

No, the HOC 2020 only applied to new properties registered under the campaign from specific developers.

Did all properties receive a 10% discount?

minimum 10% discount applied on all properties within the scheme, with the exception of those subject to government price controls.

Can I buy multiple properties under the campaign?

Yes, you can. There was no limit to the number of properties you can purchase, and get stamp duty exemptions for all, under the HOC 2020.

Do I have to pay a fee to participate?

No, the campaign is free. Developers must pay a registration fee but that does not apply to home owners.

What was the exemption amount on the Instrument of Loan?

The exemption on an Instrument of Loan amount covers 0.5% of the loan agreement. That amount covers the standard stamping fee for such an instrument.

**Details of the home ownership campaign 2020 will be updated upon the official release of government gazette.

政府将会再度推出“拥有房屋运动”计划,购买房屋价格介于30万至250万令吉之间将可豁免地契 转让及贷款合约的印花税。至于地契转让方面,免印花税仅限于房屋价值的首100万令吉。

这项豁免 适用于今年6月1日至2021年5月31日之间签订的买卖协议,但须遵守发展商给予至少10%折扣的条款。

0 Points


Leave a Reply

Your email address will not be published. Required fields are marked *