What the affordability calculator does
This calculator estimates the largest home loan your income can support, the way banks assess it: what is left of your net income after existing debts, at the bank's debt service ratio, turned into a loan at your rate and tenure.
It then adds your down payment to show the highest price you could look at, and links to launches in that budget.
What you should know
- Debt service ratio (DSR)
- Your monthly debts, including the new loan, as a share of net income. Banks often allow 60% to 70%, more for higher incomes
- Net income
- Your pay after EPF, SOCSO and income tax. Banks count fixed allowances, and only part of variable income such as commission
- Commitments
- Car loans, PTPTN, personal loans, credit card minimum payments and other home loans
- Joint borrowers
- A spouse or family member can apply with you; banks then add both incomes and both sets of debts
- Credit record
- Banks check your repayment history through CCRIS and CTOS. Late payments can lower the loan offered
Good to know
- Leave room in your budget: interest rates can rise, and the instalment from this calculator is for today's rate.
- Paying off a small debt before you apply, such as a car loan near its end, can raise the loan a bank will offer.
Figures reflect the rules as we understand them and can change. Check with your bank, lawyer or LHDN before you rely on them.