House Loan Calculator Malaysia Based on Salary

Looking to buy a home in Malaysia but not sure how much you can borrow? A house loan calculator Malaysia based on salary helps you quickly estimate your loan eligibility and monthly instalments. By entering your income, existing commitments, and preferred loan tenure, you can know exactly what property price range is affordable for you.

Why Use a House Loan Calculator?

Banks in Malaysia usually allow borrowers to use up to 30–40% of their monthly income for housing loans. This percentage is known as the Debt Service Ratio (DSR). A calculator takes into account:

• Monthly salary (basic + fixed allowances)

• Current debts (car loan, PTPTN, credit card, personal loan, etc.)

• Interest rate offered by banks

• Loan tenure (usually up to 35 years, or age 70)

By combining these factors, the calculator shows the maximum property price and loan amount you can qualify for.

How It Works – Example

• Monthly salary: RM6,000

• Existing commitments: RM1,000

• Loan tenure: 30 years

• Interest rate: 4%

👉 Maximum monthly instalment allowed (based on 35% DSR) = RM2,100
👉 Eligible loan amount ≈ RM450,000
👉 Affordable property price ≈ RM500,000 (assuming 10% down payment)

Benefits of Using a Salary-Based Loan Calculator

✅ Saves time – No need to manually calculate DSR
✅ Realistic property search – Focus on homes within budget
✅ Compare banks – See how interest rates affect instalments
✅ Plan ahead – Avoid rejection when applying for a housing loan

Key Tips Before Applying for a Housing Loan in Malaysia

• Keep your CCRIS & CTOS score clean (avoid late payments)

• Reduce other debts to improve your DSR

• Save at least 10% down payment (plus legal fees & stamp duty)

• Compare different banks’ packages before deciding

Final Thoughts

A house loan calculator Malaysia based on salary is the easiest way to know how much home you can afford. Try it before visiting property showrooms so you’ll have a clear budget in mind.

If you’re ready to calculate now, use our free house loan calculator below and find out your maximum loan eligibility instantly.

What’s the Down Payment Like in Malaysia?

• For most properties, first time homebuyers need to pay at least 10% of the purchase price as down payment. Maybank2u+3PropertyGuru+3PropertyGuru+3

• For subsequent property purchases, down payments are often higher (20-30%), depending on type of property, location, and applicant’s credit/ income profile. Hartamas Real Estate

• There are schemes like Skim Rumah Pertamaku (MyFirst Home Scheme) which help eligible buyers, sometimes allowing more favourable financing or lower down payments under certain price thresholds. Chester Website+1

Debt Service Ratio (DSR) Explained

• What is DSR? It’s how much of your income goes to servicing debts (existing debts + your prospective home loan instalment) as a percentage of your net income. Findoctor+1

• Typical acceptable DSR range: Banks usually like the DSR to remain at somewhere between 30-40% of your net income. If your total monthly commitments push your DSR too high, you may be rejected or offered less. Sharlife+2Hong Leong Bank+2

• Some banks might allow up to ~70% DSR in certain circumstances, but that’s unusual and depends heavily on the credit history, income stability, etc. Sharlife

Interest Rates & Loan Tenure

• Interest / profit rates on home loans in Malaysia vary. Many current home financing / profit rates start from ~4-5% p.a., depending on bank, scheme (conventional or Islamic), and buyer’s profile. RinggitPlus+2CIMB Malaysia+2

• Loan tenure: usually up to 35 years, or until the borrower reaches age 70, whichever comes first. PropertyGuru+2Hong Leong Bank+2

Other Up-Front Costs to Prepare

Even if you can pay the down payment and loan instalments, there are other costs you need to budget for:

• Earnest deposit / booking fee: often ~ 2-3% of purchase price. Chester Website+1

• Legal fees (conveyancing), stamp duty (for Sale & Purchase Agreement, Loan Agreement etc.), valuation fees. Maybank2u+1

• Sometimes home insurance, property insurance or takaful if Islamic financing.

Sample Scenarios Based on Salary

Here are more examples to show how much home loan someone might qualify for, based on different salary levels, using assumptions common in Malaysia (DSR limit ~ 35-40%, 10% down payment, interest ~4.5%, 30-35 year tenure):

*These are estimates: actual loan amount depends on bank rate, credit score, down payment, whether you’re buying new or subsale property, etc.

Documents & Eligibility Requirements

To apply for a home loan, typically you will need:

• NRIC / identification

• Proof of income: salary slips, EPF statement, employer letter

• Bank statements

• Details of existing commitments (loan, credit card, etc.)

• Property details, sales & purchase agreement (if already chosen)

• Sometimes a credit report (CCRIS / CTOS)

Eligibility conditions often include:

• Minimum gross monthly income (some banks require RM5,000+ for certain loan types) OCBC Bank Malaysia

• Age limits: borrower must be at least 18; loan must be repaid by certain age (usually 70) Hong Leong Bank+1

• Good credit / debt history

Tips to Improve Your Chances of Approval

• Lower your existing debts to reduce DSR

• Increase your gross/net income if possible (overtime, bonuses, second job etc.)

• Save for a bigger down payment so loan amount is smaller

• Keep good credit history (no late payments)

• Compare offers from several banks / financial institutions

FAQs to Keep

• How much loan can I get if my salary is RM5,000 per month? (Use the sample scenario or allow users to plug numbers)

• What happens if I pay more than 10% down payment? (Reduces monthly repayment & total interest)

• Can I use EPF Account II funds for down payment? Yes, under certain conditions. Chester Website+1

• What are the differences between conventional and Islamic home financing?