Home loan calculator Malaysia 2026
Checked by Gabriela Ruiz, financial analyst, against the official sources
Housing loans in Malaysia are reducing-balance loans with monthly rests: every month interest is charged only on what you still owe. Enter the property price, the margin of financing, the rate in your letter of offer and the tenure to see your monthly instalment and how the balance falls.
A RM 500,000.00 home with 90% financing is a RM 450,000.00 loan. At 4% over 35 years the instalment is RM 1,992.49 a month and the total interest RM 386,844.26.
Balance year by year
| Year | Interest | Principal | Balance |
|---|---|---|---|
| 1 | 17,890.44 | 6,019.40 | 443,980.60 |
| 2 | 17,645.20 | 6,264.64 | 437,715.97 |
| 3 | 17,389.97 | 6,519.87 | 431,196.10 |
| 5 | 16,847.89 | 7,061.95 | 417,348.66 |
| 10 | 15,287.22 | 8,622.61 | 377,481.48 |
| 15 | 13,381.65 | 10,528.18 | 328,803.80 |
| 20 | 11,054.96 | 12,854.87 | 269,368.51 |
| 25 | 8,214.08 | 15,695.76 | 196,798.22 |
| 30 | 4,745.37 | 19,164.47 | 108,190.15 |
| 35 | 510.09 | 23,399.75 | 0.00 |
Estimate only. Legal fees, stamp duty, valuation and MRTA/MLTA are not included. Your bank's letter of offer is authoritative.
How the instalment is worked out
The instalment stays the same every month, but its make-up changes. At the start most of it is interest: in the first year of the example above about 75% of what you pay goes to interest. As the balance falls, more of each instalment goes to the principal.
A shorter tenure raises the instalment but cuts the interest a lot. The same RM 450,000.00 over 30 years costs RM 2,148.37 a month and RM 323,412.78 in interest, RM 63,431.48 less than over 35 years.
Most housing loans are floating: the rate is tied to the bank's standardised base rate (SBR) plus a spread, so the instalment moves when Bank Negara changes the overnight policy rate. Try a rate one percentage point higher to see what a rise would cost you.
Down payment: how much you pay upfront
The down payment is the part of the price the bank does not finance: price x (100% - margin of financing). For your first and second homes the margin is set by each bank's own credit policy; many banks offer up to 90%, which means paying at least 10% upfront. From your third housing loan, Bank Negara limits financing to 70%, so the down payment is at least 30%.
At 90% financing the down payment is RM 30,000.00 on a RM 300,000.00 home, RM 50,000.00 on RM 500,000.00 and RM 80,000.00 on RM 800,000.00. On a third housing loan the same RM 500,000.00 home needs RM 150,000.00 upfront. Change the margin of financing in the calculator to see your own figure.
Budget separately for legal fees and stamp duty on the sale and purchase agreement and on the loan agreement, the valuation fee and mortgage insurance (MRTA or MLTA). They are not part of the down payment or the instalment above.
How much home loan can I get on my salary?
Banks start from the instalment you can afford, not from the loan amount. At 4% over 35 years, RM 1,000.00 a month carries a loan of about RM 226,000.00, RM 1,500.00 about RM 339,000.00, RM 2,000.00 about RM 452,000.00 and RM 3,000.00 about RM 678,000.00.
To find your instalment, start from net pay and the bank's DSR limit. On a gross salary of RM 5,000.00 the net pay is RM 4,305.35. With a RM 800.00 car loan and an example DSR limit of 60% (the example in our DSR calculator, not a bank rule), RM 1,783.21 a month is left for the home loan, enough for a loan of about RM 403,000.00 at 4% over 35 years. With 90% financing that matches a home priced at about RM 447,000.00.
A lower DSR limit, a higher rate or a shorter tenure all reduce the figure. Work out your own room in the DSR calculator, then enter the price and margin above until the instalment fits.
Will the bank approve the loan?
Banks check whether the new instalment fits your income using the debt service ratio. Add your existing car loan, PTPTN and card repayments in the DSR calculator, and use the salary calculator for your net pay.
Questions
What is the maximum tenure for a home loan in Malaysia?
Banks commonly offer up to 35 years, or until you reach about 70, whichever comes first. Each bank sets its own limit.
How much home loan can I get with my salary?
It depends on your net income, your other repayments and the bank's DSR limit. As an example, RM 5,000.00 gross with a RM 800.00 car loan and a 60% limit leaves RM 1,783.21 a month, about RM 403,000.00 of loan at 4% over 35 years.
How much down payment do I need for a house in Malaysia?
Usually at least 10% of the price, because many banks finance up to 90% of a first or second home, subject to their own assessment. For a third housing loan financing is capped at 70%, so at least 30% is paid upfront. Legal fees and stamp duty come on top.
Is the interest rate fixed?
Most conventional and Islamic home financing in Malaysia is variable, linked to the bank's SBR. Fixed-rate periods exist but are less common. Check your letter of offer.
Does paying extra shorten the loan?
On a flexi or semi-flexi loan, extra payments reduce the balance and the interest straight away. On a term loan, check the agreement for how prepayments are applied and whether a lock-in penalty applies.