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First home loan interest relief YA2026: RM7,000 limit — what qualifies?

First home priced up to RM500k: loan interest up to RM7,000 a year for 3 years.

First home loan interest (≤ RM500k)

YA2026

RM7,000

YA2027 (Proposed)

RM7,000

What qualifies?

  • Malaysian citizens buying their first residential home.
  • Sale & Purchase Agreement signed between 1 Jan 2025 and 31 Dec 2027.
  • Three consecutive years of assessment from the first year interest is paid.

Tips

  • Joint borrowers split it by their share.
  • The home must not be rented out.

Records to keep

SPA, loan agreement, bank’s annual interest statement.

First home loan interest (RM500k–750k)

YA2026

RM5,000

YA2027 (Proposed)

RM5,000

What qualifies?

  • Same conditions as above, different price range.

Tips

  • You can only claim one of the two tiers.

Records to keep

SPA, loan agreement, bank’s annual interest statement.

How much tax does the full RM7,000 save?

Single, no bonus, basic reliefs only. Tax saved ≈ amount claimed × your marginal rate.

Monthly salary Marginal rate Tax saved
RM4,000 3% RM190.04
RM6,000 11% RM770
RM8,000 19% RM1,330
RM10,000 25% RM1,729
RM15,000 25% RM1,750
RM20,000 25% RM1,750
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FAQ

What is the limit for first home loan interest (≤ rm500k)?

YA2026: RM7,000. YA2027 (proposed): RM7,000.

What records do I keep for first home loan interest (≤ rm500k)?

SPA, loan agreement, bank’s annual interest statement. LHDN can ask for them within 7 years.

What is the limit for first home loan interest (rm500k–750k)?

YA2026: RM5,000. YA2027 (proposed): RM5,000.

What records do I keep for first home loan interest (rm500k–750k)?

SPA, loan agreement, bank’s annual interest statement. LHDN can ask for them within 7 years.