Home-loan affordability
Home Loan Eligibility Calculator (Malaysia)
Work backwards from your income, existing commitments, and a DSR planning assumption to estimate your monthly instalment headroom, maximum loan, and indicative property price.
You choose the DSR assumption
Malaysia has no single DSR limit that guarantees approval across all banks and borrowers. The 60% starting value is an editable planning assumption, not a BNM cap or a promise that a bank will lend this amount.
How it's calculated
Step 1: find instalment headroom. Multiply the income entered by your selected DSR, then subtract existing monthly debt commitments. If the result is negative, the calculator uses zero.
Step 2: turn the instalment into a loan amount. The calculator reverses the standard amortising-loan formula using the indicative annual rate and tenure you entered. A higher rate reduces the loan supported by the same instalment; a longer tenure increases it but usually means more total financing cost.
Step 3: turn the loan into a property price. Divide the maximum loan by the selected loan-to-value ratio. At 90% LTV, for example, the loan represents 90% of the indicative price and the remaining 10% is the deposit before transaction costs.
What the result does not decide. A bank still assesses recognised income, credit conduct, age and tenure rules, product policy, property valuation, margin of financing, documentation, and other commitments. The result is a planning estimate only.
Common questions
Is 60% the legal or BNM DSR limit?+
No. The calculator starts at 60% because it is a useful planning reference in published consumer education, but banks set and apply their own affordability thresholds. Change the input to test a more conservative or more permissive assumption.
Should I enter gross or net income?+
The input is labelled gross income for a quick first estimate. PIDM notes that DSR can be calculated using net income after statutory deductions, and banks may recognise salary, allowances, bonuses, commissions, rental income, or self-employed income differently. Re-run the tool with a conservative recognised-income figure when uncertain.
Does the property price include stamp duty and legal fees?+
No. The displayed property price comes only from the loan and LTV assumptions. Deposit, stamp duty, legal fees, valuation, insurance or takaful, renovation, and moving costs need separate cash.
Why does a higher rate reduce my estimated loan?+
With the same monthly instalment, more of each payment goes to financing cost when the rate is higher, leaving less capacity to repay principal. That reduces the loan amount supported by the same DSR headroom.
Does this result mean my home loan will be approved?+
No. It is an arithmetic screening estimate, not a credit decision. The bank quote, property valuation, credit review, and formal approval are authoritative.
Authoritative sources
- PIDM: DSR formula and bank-threshold context
- CIMB: property affordability calculator
- CIMB: property monthly-instalment calculator
The DSR formula and threshold caveat are based on PIDM consumer education. Property affordability and instalment structure are cross-checked against CIMB’s published calculators. The defaults are editable illustrations, not current market quotes or approval rules.