Home Loan Affordability Calculator
Get an indicative sense of the home financing and property price you could comfortably support, based on your income and existing commitments. This is a planning estimate — real eligibility is decided by your bank.
You set this. Banks apply their own debt-service (DSR) policy — this tool does not assume a fixed regulatory limit. 50–70% is a common planning range, but your bank decides.
Indicative affordability estimate
I help Malaysian SMEs get their numbers — and their systems — right with Bukku accounting software. These calculators are a free resource I share — not financial, credit or property advice.
Message Faiz on WhatsApp →How affordability is estimated here
We take your gross monthly income and apply the commitment ratio you choose to get the maximum you'd allocate to all monthly repayments. We subtract your existing commitments to find the maximum monthly housing payment, then work backwards from that payment — at your assumed rate and tenure — to an indicative financing amount, and use your down-payment percentage to estimate a property price.
Why your bank's number will differ
Lenders assess a debt-service ratio (DSR) using their own policy and usually your net income after statutory deductions, not gross. They also weigh credit history, the type and number of commitments, the property, guarantor arrangements and product rules. There is no single fixed national DSR cap that applies to everyone — each bank sets its own. That's why this tool lets you set the ratio yourself rather than hard-coding one.
Using it well
- Try a conservative ratio first — comfortable repayments protect your cash flow if rates rise.
- Include realistic commitments: car, personal financing, and the minimum on credit cards.
- Stress-test with a higher assumed rate to see how affordability changes.
- Remember upfront costs beyond the down payment (legal fees, stamp duty, valuation, moving).
Frequently asked questions
Does this guarantee how much a bank will lend me?
No. It is an indicative planning estimate. Only a bank can tell you your actual eligibility after its assessment.
Should I use gross or net income?
This tool uses the income figure you enter with the ratio you choose. Banks typically assess net income, so for a more conservative view you can enter your net income instead.
What commitment ratio should I pick?
That's your call. Many people plan around 50–70% of income for total repayments, but a lower ratio is safer. Your bank applies its own DSR policy regardless.
Are my figures stored?
No. Everything runs in your browser; nothing is saved or sent.
Sources & methodology
- Annuity present-value and reducing-balance amortisation — standard financial mathematics.
- Debt-service ratio is set by individual lenders under Bank Negara Malaysia's responsible-financing framework; see Bank Negara Malaysia.
Disclaimer: Indicative estimates for general information and planning only — not financial advice, a loan approval, or a commitment to lend. Actual eligibility, rates and amounts depend on the relevant bank or financial institution and its assessment.