First-Time Home Buyer Guide in Sarawak

Purchasing your first home is an exciting milestone, and understanding the process in Sarawak can help you navigate this journey with confidence. This comprehensive guide covers everything first-time buyers need to know about entering the property market in Sarawak.

Financial Considerations

Before beginning your property search, it's essential to assess your financial readiness. Most banks in Malaysia require a minimum 10% down payment for properties, with some offering up to 90% financing for first-time buyers. Calculate your budget carefully, factoring in the property price, loan installments, legal fees, stamp duties, and ongoing maintenance costs. A good rule of thumb is ensuring your monthly loan installment doesn't exceed 30% of your gross monthly income.

Lookout for Government Initiatives

The Malaysian government’s latest initiatives to assist first-time homebuyers, as outlined in the 2025 and 2026 budgets, focuses on expanding affordable housing access and financial support mechanisms. Key programs include the Housing Credit Guarantee Scheme (HCGS/SJKP), which provides government-backed loan guarantees up to RM500,000 even for gig workers and those without fixed payslips, full stamp duty exemptions on properties priced up to RM500,000 extended until 2027, and substantial funding for affordable housing construction, including 20,000 units planned in Sarawak under the 13th Malaysia Plan. Additionally, deposit assistance schemes, low-interest mortgage options for lower-income groups, and incentives such as tax deductions for converting commercial properties into residences further enhance homeownership opportunities. **(Approval is not automatic: applicants must still meet all scheme-specific criteria and pass financial scrutiny.) These initiatives replace the now-obsolete i-Miliki and Home Ownership Campaign (HOC) programs, prioritizing broader financial inclusion and sustainable housing growth while balancing market stability.

Location, location, location

Location is paramount when choosing your first property. Consider factors beyond just price: proximity to your workplace, access to amenities like schools and hospitals, public transportation links, and future development plans for the area. In Sarawak, emerging suburbs often offer better value for money compared to established city centers, while still providing good connectivity and growth potential.

Do Your Own Research

When you've identified a property, conduct thorough due diligence. Engage a qualified lawyer to verify the title, check for encumbrances, and review the Sale and Purchase Agreement. For subsale properties, consider hiring a professional property inspector to assess the building's condition. Don't rush the process; take time to understand all clauses in your agreements before signing.

Preparing Your Loan Application

The loan application process typically takes 2-4 weeks. Prepare necessary documents including your IC, payslips for the last 6 months, EPF statements, bank statements, and income tax returns. Having complete documentation ready can expedite approval. Compare loan packages from multiple banks to secure the best interest rates and terms.

Finally, remember that buying property is a long-term commitment. Choose a property that aligns with your lifestyle needs and financial capacity. Don't stretch your budget too thin, and maintain an emergency fund equivalent to 6 months of expenses. With careful planning and the right guidance, your first property purchase can be a rewarding investment in your future.

Sources:

1. https://naimproperties.com.my/help-desk/buyers-guide-faq/
2. https://www.asnbacademy.com.my/en/posts/simple-guide-to-first-time-home-buyers-in-malaysia
3. https://bernama.com/en/news.php?id=2356019
4. https://www.mof.gov.my/portal/en/news/press-citations/first-time-house-buyers-to-continue-enjoying-stamp-duty-exemption-mof
5. https://www.mgtc.gov.my/2025/10/malaysias-budget-2026-signals-transformative-growth-for-real-estate-and-property-markets/
6. https://www.mof.gov.my/portal/en/news/press-citations/budget-2026-will-strengthen-housing-reform-expand-access-to-affordable-housing-amir-hamzah
7. https://www.iproperty.com.my/guides/housing-loan-how-to-apply-as-a-first-time-homebuyer-in-malaysia-56409