🏡 Home Loan Eligibility Calculator Malaysia

Buying a home is one of the biggest financial decisions in life. Before you commit, it’s important to know how much loan you are eligible for. Our Home Loan Eligibility Calculator Malaysia helps you check your Debt Service Ratio (DSR) instantly and estimate your maximum home loan amount, property price, and upfront costs.

This tool is designed specifically for Malaysians, with local DSR rules, margin of finance (MoF), stamp duty tiers, and legal fee estimates built in. Whether you are a first-time buyer or upgrading, you’ll know where you stand before approaching the bank.

🔎 What is Home Loan Eligibility?

Home loan eligibility simply means how much financing a bank is willing to approve for you. In Malaysia, the most important factor is your Debt Service Ratio (DSR).

• DSR below 45% → Most banks consider you Eligible ✅

• DSR between 45% – 60% → You are in the Borderline ⚠️ zone. Approval depends on bank, income, and credit record.

• DSR above 60% → Considered Not Eligible ❌. Approval is unlikely unless you have a joint applicant or guarantor.

The calculator also checks your Margin of Finance (MoF / Loan-To-Value), which is the percentage of the property price a bank is willing to finance. Most buyers get 90% MoF, but some schemes allow 100% or even 110–120% financing.

📊 How Banks in Malaysia Assess Home Loan Eligibility

Banks do not look at just one number. Here are the key factors:

1. Income Level – Gross salary + allowances + other income (e.g., rental).

2. Existing Commitments – Car loan, credit cards, PTPTN, personal loan.

3. DSR Calculation – (Commitments + Proposed Instalment) ÷ Income × 100%.

4. Loan Tenure – Longer tenure = smaller instalment, easier approval.

5. Interest Rate – Lower rate = more affordable instalment.

6. Age of Borrower – Most banks require full repayment before age 70.

7. Credit History – CCRIS / CTOS report must show good repayment habits.

8. Property Type & Location – Certain banks may impose conditions on sub-sale or under-construction properties.

🏦 Typical Bank DSR Limits in Malaysia

• Conventional banks (Maybank, CIMB, Public Bank, Hong Leong, RHB) → ~45% cap.

• Higher income borrowers → Sometimes allowed up to 60%.

• Public sector (LPPSA financing) → Monthly commitments cannot exceed 60% of gross income; total debt usually capped at 80% of net income.

💡 Government & Special Schemes for Full Loan

Malaysia offers several schemes that let you apply for a full loan or more:

• SJKP (Skim Jaminan Kredit Perumahan) → Up to 110% financing (covers loan + MRTA + legal fees).

• SJKP MADANI → Up to 120% financing for eligible first-time buyers.

• My First Home Scheme (RUMAWIP) → Special programme for properties up to RM500k with 100% financing.

• Stamp Duty Exemptions → First-time buyers enjoy full exemption up to RM500k and 50% exemption between RM500k – RM1m (subject to Budget policies).

📑 Documents Required for Loan Application

To apply for a housing loan in Malaysia, prepare:

• NRIC / MyKad

• Latest 3 months payslips

• Latest 6 months bank statements

• Latest EPF statement / Tax return (Form B for self-employed)

• Booking form / Sale & Purchase Agreement (SPA)

• Business registration (if self-employed)

Banks use these to verify income, stability, and repayment ability.

🎯 Why Use Our Home Loan Eligibility Calculator?

✔ Built with Malaysia-specific DSR rules
✔ Supports Margin of Finance options (70%–100%)
✔ Includes developer rebate (zero downpayment) option
✔ Auto-calculates stamp duty & legal fees
✔ Provides Upfront Cash Needed breakdown
✔ Visual charts for instalments vs income
✔ Instant result: Eligible ✅ / Borderline ⚠️ / Not Eligible ❌

📝 Tips to Improve Your Loan Eligibility

• Pay off or reduce existing loans and credit card balances

• Apply with a joint applicant (spouse or family) to combine income

• Extend your loan tenure (up to 35 years) if age allows

• Improve your credit score by paying bills and loans on time

• Keep job stability — banks prefer fixed income earners

• Save for upfront fees even if developer offers rebates

❓ FAQ – Home Loan Eligibility in Malaysia

1. What is the maximum DSR allowed by banks?
Most banks cap DSR at 45%. Some allow up to 60% if your income is high.

2. Can I get 100% home loan in Malaysia?
Yes. Some schemes (SJKP, My First Home) and certain developer projects offer full financing, either through 100% MoF or rebates covering downpayment.

3. What is the maximum loan tenure in Malaysia?
Up to 35 years or until age 70, whichever is earlier.

4. Do first-time home buyers get stamp duty exemption?
Yes. As of 2025, full exemption up to RM500k, and 50% exemption between RM500k – RM1m.

5. How do I calculate my eligibility manually?
Add your monthly income, subtract commitments, apply DSR limit (usually 45%), then estimate your loan amount using bank interest & tenure. Our calculator automates this instantly.

✅ Final Word

Your home loan eligibility depends on more than just salary. Banks look at your commitments, DSR, age, and credit history. Use this calculator to check your numbers before applying, so you can approach banks with confidence.

👉 If you’re buying with a spouse, try our [Joint Home Loan Eligibility Calculator Malaysia] for combined income scenarios.