Home loan calculator Malaysia 2026
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.
Margin of financing and down payment
Banks commonly finance up to 90% of the price for your first and second homes, so you pay at least 10% as a down payment. From your third housing loan, Bank Negara limits financing to 70%.
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 instalment above.
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. Work out the room left in your budget with the DSR calculator, then try loan amounts here until the instalment fits.
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.