Question For Housing Loan Eligibility.

Hi there. I have a net 3000 salary. Basic is 3200, with an allowance of RM150. I wish to know am I eligible for a housing loan. This is my first home. The car loan is going to complete in 2 months. I have a PTPTN loan, which I’m still paying. I hope you can provide some advice.


Thanks for your question.

Usually, we’d recommend continuing this conversation through the phone as we can understand your situation and have the correct figures for the housing loan eligibility calculation.

But, to give you a quick answer on your housing loan eligibility (Malaysia).

This is how we calculate it.


Firstly, to calculate your housing loan eligibility, we need to use the debt service ratio.

The ideal debt service ratio (DSR) will be 65% for your income.

So, your net income is RM3000.

All your new and existing commitments should be in the range of RM3000 x 65% = RM1950.

The range of Debt service ratio is between 60%-70%. So we approach conservatively by using 65%.


Since we don’t have your car loan and PTPTN installments, let make some assumptions, and you can do your housing loan eligibility calculation later.

We assume the existing commitment as follows.

Car Loan installment: RM500

PTPTN Loan: RM150

The total existing commitment is RM650


Therefore, your new commitment ( which the new home loan you’re going to take), the installment should be RM1950 – RM650 = RM1300.


For this next step, you can use any online home loan calculator.

Key in the home loan interest rate, tenure, and the installment amount. Some online calculators will allow for backward calculation of the eligible Loan Amount.

If not, you can key in the interest rate, tenure, and loan amount, until you get the RM1300 installment. From there, you’ll know your loan entitlement.

Interest rate = 3.30%

Tenure = 30 years

Instalment = RM1227

Loan Amount = RM280,000

In this case, your loan eligibility is RM280,000.


To calculate your Purchase Price, you can use this formula to work backward.

The maximum bank margin is 90%.

Let assume, RM280,000 is 90% loan margin.

Using this formula, you can calculate the Purchase Price.

Purchase Price = Loan Amount / 90%

RM280,000 / 90% = RM311,111.11, Purchase Price

Therefore, you should target Property in the range of RM300,000 -RM310,000.


1. Based on the above housing loan eligibility calculation, you should be eyeing Property in the range of RM300k-310k. Anything above this increase the chances of getting a 90% loan margin.

2. Your loan entitlement is around RM280,000.

3. We would suggest you purchase a house or apply for a home loan after fully settling your car loan. This way, you can get a higher loan entitlement.

We hope this eligibility housing loan calculation can help you with buying a new house.

If you are looking forward to having a more accurate calculation for the loan eligibility, please call us at 012-6946746 and talk to our consultant Mr. David. He will help you out.

Before you go, take this opportunity to read this related article to the first-time house buyer.

Exemption For Stamp Duty 2019-2020




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