What is the Loan Agreement Legal Fees on buying a property?
Loan agreement legal fees in Malaysia are typically calculated on a tiered basis, starting at 1.25% for the first RM500,000 of the loan, reducing to 1% for the next RM7 million, and are subject to 8% Service Tax (SST) and disbursements. The total cost usually amounts to roughly 2% to 5% of the property price when including stamp duty and disbursements.
Example:
For Loan Amount of RM500,000:
- Legal Fee: RM500,000 x 1.25% = RM6,250
- Loan Stamp Duty: RM500,000 x 0.5% = RM2,500
- SST: 8% of Legal Fee (RM6,250) = RM500
Estimated Total: RM 9,250 + Disbursements.