Can You Buy a Subsale Home with No Deposit and a Full Loan?

Buying a subsale home with no deposit means getting financing that covers the whole purchase price, so you do not have to pay the usual 10% deposit out of your own pocket. It is possible for some buyers, for example through LPPSA financing for civil servants, or where the price you agree is below the property's market value. It is never automatic, because it depends on the valuation and on how much the lender will finance. And "no deposit" does not mean "no cost": you still have to pay legal fees, stamp duty and other transaction costs in cash.

Quick summary

• "No deposit" means a full loan that covers the entire price, so you do not pay the 10% deposit yourself.

• It can happen for eligible buyers and properties that are valued high enough, but it is not guaranteed. It depends on the valuation and the financing margin.

• Even with a full loan, you still pay legal fees, stamp duty and related costs.

• First-time buyers may qualify for a stamp duty exemption on homes priced up to RM500,000 (extended to 31 December 2027), subject to conditions.

What "no deposit" actually means in a subsale purchase

In a typical subsale (second-hand) purchase, the buyer pays a 10% deposit when the Sale and Purchase Agreement (SPA) is signed, and the bank or financier pays the balance 90% at completion. The 10% usually includes the earnest deposit or booking fee you paid when you made the offer.

A "full loan" or "no deposit" purchase is one where the approved financing is large enough to cover the whole price. In practice, that happens in a few situations, set out below. In each one, the deciding factor is not what the seller or agent promises you. It is what the lender is prepared to approve after valuing the property and assessing you.

Ways to buy a subsale home without a deposit

1. LPPSA financing for civil servants

LPPSA (Lembaga Pembiayaan Perumahan Sektor Awam, the Public Sector Home Financing Board) does not use a fixed margin percentage in the way banks do. The amount approved is the lowest of:

• the price of the property;

• the JPPH valuation (JPPH is the Valuation and Property Services Department);

• the amount you apply for; or

• your maximum eligibility as the applicant.

If your eligibility is high enough and the JPPH valuation is not lower than the price, LPPSA financing can cover the full price, so you may not need a separate deposit. If the valuation comes in below the price, or your eligibility is lower than the price, you pay the difference yourself. LPPSA home financing is currently governed by Pekeliling Pembiayaan Perumahan LPPSA Bil. 1/2026, effective 1 January 2026, so check the current rules for your case before you commit.

2. A bank loan where the price is below market value

Banks commonly offer a financing margin of up to 90%. If you negotiate a price well below the market value, a 90% loan based on that market value may cover most of the price. Whether it covers all of it depends on the bank's own valuation and its policy. Do not assume the bank will lend on the market value the agent quotes you.

3. Government or first-home schemes

Some first-home schemes offer higher financing or deposit assistance. Eligibility, price limits and terms differ from scheme to scheme and change over time, so check the current conditions with the scheme operator or your bank before you rely on one.

To understand how much you can borrow in the first place, see our guide to home loan eligibility, DSR and income.

Costs you still pay even with a full loan

Even if the deposit is financed, the following costs are usually not covered by the loan and must be paid in cash:

For LPPSA in particular, the legal costs of the SPA and the transfer are not financed. For a full breakdown by price, see our guides to legal fees for buying and selling a house in Malaysia and housing loan and loan agreement legal fees.

Who can get a full loan with no deposit?

Eligibility depends on:

• your credit record (CCRIS and CTOS reports);

• your debt service ratio (DSR);

• how stable your income is; and

• the type and value of the property.

For civil servants using LPPSA, the approved amount is the lowest of the price, the JPPH valuation, the amount applied for and your maximum eligibility, not a fixed margin percentage. For bank loans, 100% financing is rarely given unless there is additional security, or the price is well below the valuation.

If the loan comes back lower than you expected, read what to do when a home loan is approved below the purchase price before you sign anything further.

The risks of buying with no deposit

• Higher monthly instalments. A bigger loan means a bigger repayment every month, for the whole tenure.

• Little equity at the start. If property values fall, you may owe more than the home is worth for some time.

• Cash is still needed. Legal fees and stamp duty have to be paid in cash, often before completion.

• Timing risk. If you sign the SPA before the financing is confirmed and the approved amount is lower than you expected, you must find the shortfall or risk the deal. See what happens if your loan is rejected after signing the SPA.

Make sure your DSR is comfortable before you commit, and do not set your budget on the monthly instalment alone. Our guide on setting a home-buying budget explains why.

"A full loan with no deposit depends entirely on the bank's valuation and your financing margin. It is not an automatic right. What many people overlook is that legal fees and stamp duty still have to be paid in cash, so plan that cash flow early," says Akmal Saufi Mohamed Khaled, lawyer and principal of ASCOLAW (Messrs Akmal Saufi & Co).

How ASCOLAW can help

If you are planning a subsale purchase with a full loan or LPPSA financing, ASCOLAW can explain the legal fees and stamp duty for your price and loan amount, act on the SPA and the transfer, and flag the points in the SPA that matter when your financing is not yet confirmed. Fill in the ASCOLAW enquiry form below with the property price, your financing type and the property details, and our team will contact you with a quotation and next steps.

Frequently asked questions

Can I really buy a subsale home without paying any money at all?

The deposit can be financed in some cases (for example through LPPSA, subject to your eligibility, not a fixed margin percentage), but you still need to pay legal fees and stamp duty. So you will need some cash for the transaction costs. It is not zero.

Can I get a full loan for a subsale home, not just a new home from a developer?

Yes. Full financing is not limited to developer properties. What decides it is your eligibility, the property's market value and the lender's policy.

What are the risks of buying without a deposit?

Your monthly instalments are higher because the loan is bigger, and your starting equity is low. Make sure your DSR is comfortable before you commit.

Does a full loan cover legal fees and stamp duty?

Usually not. For LPPSA, the legal costs of the SPA and transfer are not financed. Budget for legal fees, stamp duty and disbursements in cash, and check whether you qualify for the first-home stamp duty exemption.

This article is general information only and is not legal or financial advice. Financing approval depends on your lender's assessment, and scheme rules change over time. Get specific advice before signing a booking form or SPA. The SRO 2023 fee scale described applies in Peninsular Malaysia; Sabah and Sarawak have their own rules on legal fees.

Related guides

• Home Loan Eligibility: Understand DSR, Income and Commitments Before Applying

• Home Loan Approved Below the Purchase Price: How Much Extra Cash Do You Need?

• Legal Fees for Buying and Selling a House in Malaysia (2026 Guide)

• Stamp Duty Exemption for Property Transaction in Malaysia

• Buying a Home? Don't Set Your Budget Based on the Monthly Instalment Alone