Maximum loan and property price from your income and DSR.
Maximum property price
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Max monthly repayment
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Max loan
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Income used (net)
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Assumes downpayment
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Your breakdown
Updates live as you type
Item
Amount
Worked example
Take a net take-home income of RM8,000 a month, existing commitments of RM1,500, and a target debt service ratio of 60 percent. The bank will let total debt reach 60 percent of RM8,000, which is RM4,800, so after the RM1,500 you already pay, RM3,300 a month is free for a new home loan. At 4.2 percent over 30 years, a RM3,300 monthly repayment supports a loan of about RM674,823, found by taking the present value of that payment stream. Assuming a 90 percent loan-to-value, the loan is 90 percent of the price, so the maximum property price you can afford is about RM749,803, with the remaining 10 percent needed as a downpayment. Clearing some existing debt or extending the tenure would lift the figure, while a higher interest rate would lower it.
Item
Amount (RM)
Net income x 60% DSR
4,800
Less existing commitments
1,500
Max monthly repayment
3,300
Max loan (4.2%, 30 years)
674,823
Max property price (90% LTV)
749,803
How it is calculated
Malaysian banks size a home loan against your debt service ratio, the share of monthly income committed to all debt repayments. The tool takes your net income times the target ratio, subtracts existing commitments, and treats what remains as the maximum monthly repayment a new loan can carry. It then works backward through the amortisation formula, taking the present value of that payment over the chosen tenure at the loan rate, to give the maximum loan. If you enter a gross figure, employee EPF, SOCSO, and EIS are deducted first to reach the net basis banks use. The maximum property price assumes a 90 percent loan-to-value, so the loan is 90 percent of the price and you supply the other 10 percent as a downpayment. Ratios and loan-to-value limits vary by bank and income band, so treat the result as a guide.
Frequently asked questions
What debt service ratio do Malaysian banks use?
Banks size a home loan against your debt service ratio, the share of monthly income going to all debt repayments. Many approve up to roughly 60 to 70 percent DSR depending on income band and policy. Maximum monthly repayment is your income times the target DSR minus existing commitments, and the maximum loan is the present value of that payment over the tenure at the loan rate.
Does existing debt such as a car loan reduce how much I can borrow for a home in Malaysia?
Yes. All existing monthly debt commitments, including car loans, personal loans, credit card minimum payments, and PTPTN repayments, are subtracted from your DSR allowance before the bank calculates a new home loan. A RM1,500 car repayment on a RM8,000 net income at a 60% DSR leaves only RM3,300 for a home loan instead of RM4,800, which cuts the maximum loan and property price by a similar proportion.
What is the minimum downpayment for a Malaysian home loan?
Malaysian banks typically lend up to 90% of the property value for the first two residential properties, meaning a minimum 10% downpayment from the buyer. For a third or subsequent residential property the margin is reduced to 70%, requiring a 30% downpayment. First-time buyer schemes such as My First Home Scheme may allow up to 100% financing subject to income and price limits, with separate eligibility rules.
Should I enter my gross or net income for the affordability calculation?
Banks calculate DSR on net income after mandatory deductions including employee EPF, SOCSO, and EIS. Enter your actual take-home pay in the net option, or enter your gross salary and let this calculator deduct the statutory contributions automatically. Using gross income without the deduction overstates your borrowing power, which is why many buyers find the bank's offer lower than an online estimate based on gross figures.