Rai & Co. / DSR & Housing Loan Calculator

DSR & Housing Loan Calculator

Find out how much Malaysian banks will lend you, then calculate your exact monthly repayment, in one place.

Income & Loan

Your take-home pay and income sources determine your borrowing capacity.

RM
Rental Income @ 80%
Other Income (Monthly)
%
2%9%
yrs
535
%
1%100%

Commitments

All existing monthly obligations reduce your available borrowing room.

Housing Loans
Car Loans
Personal Loans
Other Loans
Credit Cards (Outstanding Balance)
Total CC Outstanding
RM 0
Total CC Min Repayment
RM 0
RM
Total Income
RM —
Total Commitment
RM —
Current DSR
—%
Max Installment
RM —
Est. Max Loan
RM —
DSR Usage vs Cap0%
Est. Upfront Cash (at max property price)
Down Payment (10%)—
Stamp Duty—
Legal Fees—
Total Cash Needed —
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Loan Details

Adjust sliders or type directly. Results update instantly.

RM
RM 100KRM 5M
%
10%50%
% p.a.
2%9%
years
5 yrs35 yrs
Monthly Repayment
RM 2,148
RM 450,000 loan · 30 yrs · 4.00%
Loan Summary
Loan AmountRM 450,000
Down PaymentRM 50,000
Total RepaymentRM 773,280
Total Interest PaidRM 323,280
Interest as % of Loan71.8%
Effective Monthly Rate0.333%

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Results are estimates only. Affordability is based on a simplified DSR model; actual approvals depend on credit score, employment type, age, and individual bank policies. Mortgage results use a standard reducing-balance formula. Upfront costs use standard Malaysian stamp duty and legal fee scales. This tool does not constitute financial or legal advice.

Common Questions

Housing Loan FAQs

Everything you need to know before applying, and when the numbers alone aren't enough, our advisors are one message away.

DSR (Debt Service Ratio) is the percentage of your take-home income that goes toward servicing all your debt obligations combined. It is the primary criterion Malaysian banks use to decide how much they will lend you. If your DSR exceeds the bank's cap, typically 60–80%; your application will be declined regardless of your income level. This calculator uses your net (post-deduction) income as the basis, which is how most Malaysian banks assess residential loans.

Most banks cap DSR at 60–70% for standard applicants. Some banks extend this to 80% for high-income earners (typically above RM 10,000/month net) or specific premier loan products. Government-linked schemes such as PR1MA may apply different thresholds. The actual cap varies by bank, your employment category (salaried vs. self-employed), and your credit profile. Our advisors can tell you which banks are likely to approve your profile at the highest borrowing amount.

Yes. A joint application combines both incomes, which significantly increases your DSR room and maximum loan amount. Enter the combined net salary in the salary field, or add the second income under "Other Income." Note that joint applications also combine both parties' existing commitments and credit histories, so if one party has a poor CCRIS record, it can hurt the overall application. Our advisors assess whether a joint or individual application gives you the better outcome before you submit.

Malaysian banks apply a 20% haircut to rental income to account for vacancy risk, non-payment periods, maintenance costs, and income volatility. This is standard practice across virtually all local banks, even if your property is fully tenanted and has been for years, only 80% of the stated rental is credited toward your qualifying income. Some banks require 12–24 months of rental statements to accept the income at all.

NDI is a baseline cost-of-living deduction that certain banks add to your stated commitments to ensure you retain enough for daily expenses: food, utilities, transport, education. It functions as a floor, not a cap. Common NDI values used by Malaysian banks range from RM 1,000 to RM 1,500 per month per person. If your bank applies NDI, the RM 1,200 default in this calculator is a reasonable estimate; adjust it to match your bank's exact figure.

Your age determines the maximum loan tenure. Malaysian banks require housing loans to be fully repaid by age 70 (some banks use 65 for certain loan products). A 30-year-old can take up to a 35-year tenure; a 45-year-old is capped at 25 years. A shorter tenure means higher monthly repayments, which reduces the maximum loan amount you qualify for at a given income. The calculator auto-sets tenure based on your age; you can override it manually.

The maximum tenure for residential properties is 35 years, subject to the loan being settled by age 70. For commercial properties, the typical maximum is 25–30 years. While a longer tenure reduces monthly repayments, it substantially increases total interest paid. On a RM 500,000 loan at 3.8%, extending from 20 to 35 years saves roughly RM 550/month in repayments, but costs an additional RM 200,000+ in total interest over the loan's life.

Most Malaysian home loans are variable-rate, pegged to the Standardised Base Rate (SBR) set by Bank Negara Malaysia. As of early 2025, effective home loan rates for standard residential properties range from approximately 3.8% to 4.5% p.a. depending on the bank, loan package, and borrower profile. We have set 3.8% as the default, the lower end of the current market range, as a planning baseline. Always confirm the actual rate with your bank before committing.

A fixed rate locks in your interest rate for the full tenure, giving you certainty on repayments regardless of market movements. A variable rate (the norm in Malaysia) fluctuates with the Overnight Policy Rate (OPR). When OPR rises, your monthly repayment increases; when it falls, so does your repayment. Fixed rate products offer stability but are typically priced higher at entry. Most borrowers in Malaysia are on variable rates, making OPR changes a regular consideration in property investment planning.

For your first and second residential properties, the minimum down payment is 10% of the purchase price; the bank finances up to 90%. For a third property and beyond, Bank Negara mandates a minimum 30% down payment. Some government schemes (e.g. PR1MA, BSN MyHome) allow lower down payments for eligible first-time buyers. This calculator defaults to 10%. If you are purchasing a sub-sale property, the down payment is typically paid in stages tied to the Sale & Purchase Agreement.

The main items are: MOT stamp duty (1–4% of purchase price), loan agreement stamp duty (0.5% of loan amount), SPA legal fees (scaled under the Solicitors' Remuneration Order 2023), loan documentation legal fees, and valuation fees (BOVAEP scale, plus 8% SST). On a RM 600,000 property, total upfront costs including the down payment typically run between RM 80,000 and RM 100,000. The affordability tab estimates these automatically. Use our Property Legal Fee Calculator for a full itemised breakdown.

Every existing commitment: car loans, personal loans, PTPTN, credit card minimum repayments, reduces the DSR room available for a new housing loan. For example, RM 1,800/month in existing commitments on a RM 8,000 net salary already consumes 22.5% of your DSR before the new loan is even considered. Enter all commitments accurately in the Commitments column for a realistic estimate. If you are close to the DSR cap, settling a small loan before applying can meaningfully increase your maximum housing loan.

CCRIS (Central Credit Reference Information System), maintained by Bank Negara Malaysia, tracks all your credit facilities across every financial institution: loans, credit cards, overdrafts, and any missed or late payments. Banks pull your CCRIS report as part of every loan assessment. A clean CCRIS with no late payments and moderate utilisation is one of the strongest factors in getting approved. This calculator does not model credit scoring. If you have concerns about your CCRIS record, speak to our advisors before submitting an application.

A longer tenure lowers your monthly repayment, improving affordability month-to-month and potentially qualifying you for a larger loan under the DSR calculation. However, you pay substantially more in total interest over the loan's life. On a RM 500,000 loan at 3.8%, a 35-year tenure results in roughly RM 180,000 more in total interest compared to a 20-year tenure. Use the Monthly Repayment tab to compare the total cost of different tenures side by side before deciding.

Our advisors compare home loan packages across multiple Malaysian banks, help you optimise your DSR by structuring your application correctly, and advise on tenure, lock-in periods, flexi-loan features, and refinancing opportunities. We have access to banker relationships that can surface competitive rates not always visible to direct applicants. This service is complimentary for our property management clients, and available to all buyers and investors at no obligation.

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