The price of the house that you can afford is based on your income and existing debts.


Generally, the higher income you earned, and the less debt you accumulate will increase the chances of loan approval.

Usually, the rule of thumb and the safest way to calculate it is making sure the new house installment doesn’t stand more than 1/3 of your income.


If your income is RM6000 and 1/3 from RM6000 is RM2000, then your new home loan installment should not exceed this amount.

You can use a mortgage loan calculator to calculate the entitlement loan amount by calculating it backward.

Take RM2000 installment, 30 years tenure with current interest rates offer (current rates 3.4%), and you will get the entitlement loan amount.

In this case, the entitlement loan amount is Rm450,977.

Now, you know you can apply for an RM450k loan.

And if RM450k is a 90% margin, so the house price is RM500k.

Or the formula is this.

90% = RM450,000

10% = ?

RM450k x 100/90 = RM500k

Hence, it would be best if you aimed for a house that price at RM500k and below.

Why margin 90%?

That’s because the maximum a bank can give you is 90%.

To get a most accurate eligibility calculation, get your CCRIS report print and let us calculate the loan eligibility for you.

If you guys are interested in doing so, call us at 012-6946746, and we will calculate the eligibility for a loan on the spot. Also, it’s a free service.

We hope this article – How Much Can I Afford A House is helpful to you.




Online Mortgage Consultant

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