How much can I borrow?
This is the most important question to ask before purchasing any house.
There is no point of buying a house and your loan is not approve right?
The simple way to go about it, is by us helping you to calculate.
Just go to our contact us page and fill up some information (just take 3 minutes to fill).
And waiting to receive our Awesome Eligibility Report.
This report will tell you how much you can borrow and your entitlement.
So, try it out now by clicking here.
If you like old school, we can share with you the way to calculate your entitlement.
This may not be 100% correct because every banks may have their own calculation and guidelines. But, this can use as a guide.
First, write down all your commitments:
Car Loan instalment: RM1000
Housing Loan instalment: RM1200
Personal Loan Instalment: RM500
Credit Card min payment: RM5000 (Outstanding) x 5% min payment = RM250
Total commitment: RM1000 + RM1200 + RM500+RM250 = RM2950.00
Secondly, check out your latest payslip and look at your net income. For example, net income is RM10,000.00.
Normally, bank will use Debt Service Ratio (DSR) to calculate your entitlement.
Healthy DSR will be less than 70%.
For example, net income RM10,000 x 70% = RM7000.00
Your existing commitment and new instalment cannot exceeded RM7000.
If your commitment is RM2950, your new instalment should not exceeded RM4050 ( RM7000-RM2950 = RM4050)
So, how much you can borrow with instalment RM4050.00?
Now you have to work backwards, if your age is 30 yrs. The maximum tenure now offer by bank is 35 year or up to age 70 years, whichever comes first.
With 30 year old age, you can still entitle for tenure 35 years.
Interest rates offer in the average of 4.20% or 4.30% per annum.
Key in this information, in our mortgage calculator.
Start with key in your loan amount RM300,000, rates 4.20% and tenure 35 years. And click calculate.
You will get instalment per month. If the instalment way far from your instalment amount RM4050, just keep add in your loan amount.
I manage to get RM890,000 loan amount for instalment RM4050.00
If RM890,000 is 90% of loan amount, the purchase price you are entitle to purchase is RM890,000 / 90%( max margin) = RM988,888.88
So your entitlement of purchase price is house not more than RM988,888.88.
Are you able to calculate?
Don’t worry, if you are confused.
Contact us today!