Welcome to Malaysia’s most comprehensive home loan calculator. Buying a home is one of the biggest financial decisions you’ll ever make, and our free tool is designed to help you navigate it with confidence. By accurately estimating your monthly repayments, total interest costs, and amortization schedule, you can make an informed choice that fits your budget.

Whether you’re a first-time homebuyer or looking to refinance, understanding the financial commitment is crucial. Use our calculator to instantly see how different interest rates, down payments, and loan tenures can affect your monthly instalment, empowering you to plan your finances effectively.

Enter the price of the property you wish to purchase.

Percentage of property price paid upfront.

Annual interest rate on the loan.

Duration of the loan in years.

Monthly Payment

RM0

Your estimated monthly payment.

Total Loan Amount

RM0

Amount borrowed after down payment.

Total Cost of Loan

RM0

Total amount paid including interest.

Own Your Dream Home

Calculate your mortgage and plan your purchase today. Find the best home loan offers available in Malaysia.

1. Features

  • Accurate Loan Estimates – Calculate monthly payments, total interest, and the overall cost of your mortgage.
  • Customizable Inputs – Adjust loan amount, interest rate, and loan term to fit your needs.
  • Amortization Schedule – View a detailed breakdown of principal and interest payments over time.
  • Mobile-Friendly – Plan your home loan calculations on any device, anywhere.

2. How to Use

  1. Enter Loan Amount – Input the home purchase price minus any down payment.
  2. Set Interest Rate – Choose your loan’s interest rate.
  3. Select Loan Term – Pick the loan duration (years or months).
  4. Click Calculate – Instantly view your monthly payment and loan details.
  5. Compare & Optimize – Adjust the numbers to explore different loan options for your budget.

Frequently Asked Questions (FAQ)

What is the difference between a conventional and an Islamic home loan in Malaysia?

  • Conventional Home Loan: This is a term loan where the bank provides you with a lump sum, and you repay it with interest over a set period. The interest rate is typically tied to a variable rate like the SBR.
  • Islamic Home Loan (Home Financing): Based on Shariah principles, this works on a “profit” basis (concept of Ijarah or Musyarakah Mutanaqisah). The bank purchases the property and sells or leases it to you at a profit, which is paid through monthly instalments.

How does a home loan interest rate work in Malaysia?

Home loan interest rates in Malaysia are typically variable and are determined by the Standardised Base Rate (SBR) and a bank’s spread. The formula is: Loan Interest Rate = SBR + Bank’s Spread

For example, if the SBR is 3.00% and a bank’s spread is 0.50%, your effective interest rate is 3.50% p.a. The SBR is determined by Bank Negara Malaysia and can fluctuate, causing your monthly repayment to change.

What is a good Debt Service Ratio (DSR) for a home loan application?

The Debt Service Ratio (DSR) is a critical factor banks use to determine your loan eligibility. It measures your total monthly debt obligations against your total net monthly income. While the acceptable DSR varies between banks, a DSR below 70% is generally considered good, with a lower DSR significantly increasing your chances of approval.

What are the main costs associated with buying a house in Malaysia?

Besides the down payment, key costs include:

  • Stamp Duty: Payable on the Sale and Purchase Agreement (SPA) and the loan agreement.
  • Legal Fees: For both the SPA and the loan agreement.
  • Valuation Fees: Paid to a valuer to determine the market value of the property.
  • Insurance: Most banks require you to purchase Mortgage Reducing Term Assurance (MRTA) or Mortgage Reducing Term Takaful (MRTT).

Comprehensive Guide to Home Loans in Malaysia

To help you on your homeownership journey, here is an in-depth guide to the different types of home loans and the application process.

1. Types of Home Loan Products

  • Basic Term Loan: The simplest loan type with a fixed monthly repayment for the entire tenure. This offers a predictable payment schedule but lacks flexibility.
  • Semi-Flexi Loan: Allows you to make extra payments to reduce your loan principal and save on interest. You can typically withdraw these extra payments if needed, subject to bank charges and conditions.
  • Full-Flexi Loan: The most flexible option, where your loan account is linked to a current account. Any excess funds in the current account automatically offset your loan principal, helping you save on interest. You can withdraw the funds at any time.

2. The Home Loan Application Process

  1. Check Your Eligibility: Use our calculator and a DSR calculator to get an idea of your borrowing power. Ensure your credit score is healthy by checking with CTOS or Experian.
  2. Gather Documents: Prepare all necessary documents, including your NRIC, latest 3 months’ salary slips, EPF statements, bank account statements, and tax returns (Form B/BE).
  3. Compare Banks and Submit Applications: Approach several banks to compare their interest rates, packages, and loan terms. Submitting applications to a few banks at once is a common practice.
  4. Wait for Approval: The bank will perform due diligence and approve your loan, usually within 1-2 weeks.
  5. Sign the Letter of Offer: Once approved, you will receive a Letter of Offer detailing all the terms and conditions.

3. Loan Eligibility Factors

Banks consider several factors when evaluating your loan application:

Property Type: The value and type of the property also influence the loan amount and approval.

Debt Service Ratio (DSR): A low DSR indicates you can comfortably manage your monthly repayments.

Credit Score: A good credit history with no missed payments is essential.

Income Stability: Banks prefer borrowers with a stable job and consistent income.

Related reading