First Home Loan Interest
20 October 2026
First Home Loan Interest Relief
Eligible Malaysian tax residents may claim tax relief on qualifying housing loan interest paid for their first residential home. This relief is intended to support eligible first-time homebuyers who meet the conditions set by LHDN.
Tax Relief Amount & Breakdown
1. Property priced up to RM500,000: up to
RM7,000
2. Property priced above RM500,000 and up to RM750,000: up to
RM5,000
The relief applies to qualifying housing loan interest, subject to the applicable conditions.
What expenses qualify?
- Interest paid on a qualifying housing loan for the purchase of a first residential home.
Note: Only the eligible housing loan interest is claimable. The principal repayment portion of the monthly instalment does not qualify for this relief.
Who is eligible?
- The taxpayer must meet the applicable Malaysian tax residency and other LHDN requirements.
- The property must qualify as the taxpayer's first residential home.
- The sale and purchase agreement must be executed between 1 January 2025 and 31 December 2027.
- The residential property must not be used to generate income.
- The property price must fall within the applicable qualifying range.
Supporting Documents
- Sale and purchase agreement.
- Housing loan agreement.
- Annual bank statement or lender's statement showing eligible interest paid.
- Property purchase documents and other records required by LHDN.
Important note
- The maximum relief is RM7,000 or RM5,000, depending on the qualifying property price.
- This relief applies to eligible housing loan interest, not the entire monthly mortgage payment.
- The sale and purchase agreement must fall within the specified period.
- The relief is subject to LHDN's detailed conditions and the applicable claim period.
- Verify the full requirements before publishing or making a tax claim.
Official LHDN Reference: