Home Loan Calculator

Calculate your monthly home loan repayments and plan your monthly expenses well.
Estimated time: 2 minutes
RM
Your loan amount must be at least RM 50,000.
Your loan amount must be less than RM 100,000,000.
%
Your interest rate must be at least 1%.
Your interest rate must be less than 12%.
Yrs
Your loan tenure cannot be less than 5 years.
Your loan tenure cannot be more than 35 years.

Repayment Breakdown

What is a Home Loan Repayment?

What is a House Loan Repayment?
In summary
Home Loan Repayment

Most people will take up a house loan from a bank to help them purchase a property. These borrowers will be required to repay the house loan on a monthly basis over an agreed period of time (loan tenure) until the loan is paid in full. This monthly repayment is known as the home loan repayment.

The monthly home loan repayment covers a portion of the initial capital (the principal amount), as well as the accrued interest. As long as you make your repayments every month, your home loan balance will gradually decrease every month. Generally, the loan tenure is dependent on your age – the younger you are, the longer your loan tenure. In Malaysia, the maximum loan tenure is 35 years, or until the borrower turns 70 years old (whichever comes earlier).

It’s important to note that the initial home loan repayments will primarily be used to pay down the interest on your home loan. If you plan to sell your property in the first few years, you’ll find that the amount you owe the bank won’t have decreased significantly.

Frequently asked questions

When you pay your monthly instalments, part of it goes towards paying the principal, while part of it goes towards paying the interest.

With home loans, the amount of interest you pay is different every month. This is because the interest is only calculated on the remaining principal amount. In comparison, you pay the same amount of interest on personal loans and hire purchase (car) loans throughout your entire loan tenure.

As the manual calculation can be very complex, the easiest way to know how much interest and principal you're paying for each instalment is to use a home loan calculator. PropertyGuru's Home Loan Calculator gives you an easy, hassle-free estimate of your property's monthly repayments.

Read up on all the home loan basics you need to know in our Complete Guide to Home Loans in Malaysia.

A downpayment is the initial lump-sum, out-of-pocket payment that is made towards the purchase price of your home. Buyers are typically required to pay a minimum 10% of the property’s purchase price.

This means that if your house costs RM400,000, you will be required to pay at least RM40,000 upfront. The remaining 90% can be paid using a house loan.

Property purchase price - Loan Amount = Downpayment
RM400,000 - (90% x RM400,000) = RM40,000

The first part of your monthly home loan repayment is the principal. The principal loan amount on your housing loan is the actual amount of money borrowed from the bank. In Malaysia, most banks will lend up to 90% of the property’s purchase price to first-time homeowners (if 10% downpayment is paid).

For instance, you place a 10% downpayment on an RM500,000 house, which is RM50,000. You manage to get a 90% loan amount to cover the remaining cost of the house. In this case, your principal loan amount is RM450,000.

With home loan repayments, the amount of interest is calculated based on the outstanding principal balance. This means that the amount of interest you pay every month will be different.

At the beginning of your loan tenure, the bulk of your monthly repayments go towards paying down the interest. Towards the end of your loan tenure, the bulk of your monthly repayments go towards paying down the principal.

You can use the Reducing Balance method to calculate exactly how much interest you’ll be paying each month. Here’s the formula, along with an example (assuming your house loan’s outstanding principal on the 1st month is RM450,000, and your interest rate is 3.0% p.a.)

Outstanding Principal x Interest Rate/12 = Interest payable per instalment RM450,000 x 0.0025 = RM1,125

This means that the amount of interest payable for the first month would be RM1,125.

A good rule of thumb is that banks will loan you up to 30% of your gross income annually.

For instance, let’s say your annual income is RM50,000. 30% of that figure is RM15,000. Hence, banks will likely loan you a maximum of RM525,000 (RM15,000 x 35) for a 35-year loan tenure.

However, your income isn’t the only factor that impacts the amount of housing loan you’re eligible for. Another important factor to consider is your Debt Service Ratio (DSR), which measures a person’s debt against their household income.

Read more on how much home loan you can get based on your salary here.

Disclaimer: The results provided by this calculator assume the accuracy of the users inputs and are based on corresponding rules and regulations as set out by the Central Bank of Malaysia (Bank Negara Malaysia). The results are provided as a general basis for information and does not constitute an approval from any bank or financial institution. Any person acting upon or in reliance of this information does so entirely at their own risk. No warranty whatsoever is given and no liability is accepted by the company behind this calculator for any loss arising directly or indirectly as a result of any action or omission made in reliance of any information presented herein at any time.