How Much Home Loan Can You Get Based On Your Salary In Malaysia?

PropertyGuru Editorial Team
How Much Home Loan Can You Get Based On Your Salary In Malaysia?
When it comes to buying a property, your income is one of the most important factors to consider. The amount of money you earn directly impacts the amount of property loan you can be approved for.
Of course, there are other factors that banks will consider when approving a mortgage loan, such as your credit score (CCRIS) and debt service ratio (DSR). Your spending and payment habits, and outstanding debts, will affect your CCRIS. As for DSR, your loan application may be rejected if your DSR is too high.

How to calculate your DSR

(Total monthly commitments ÷ Net income) x 100% = Debt Service Ratio

Example:
  • Total monthly commitments: RM500 (car loan) + RM200 (PTPTN) + RM300 (credit card) = RM1,000
  • Net income: RM4,500
  • (RM1,000 ÷ RM4,500) x 100% = 22%
DSR should be no more than 30 – 40%, though some banks might still consider your loan application even with a DSR of 70%.

What are Average Incomes in Malaysia and Home Loan Affordability

According to the Department of Statistics, the median household income in Malaysia was RM6,338 in 2022. However, there is a significant difference in median household income between urban and rural areas, as stated in table below.
Household gross income
RM6,338
RM8,479
Urban household gross income
RM7,243
RM9,428
Rural household gross income
RM4,094
RM5,147
Note: At time of writing, the 2022 Household Income Survey Report 2022 (Malaysia & States) Report from the Department of Statistics Malaysia (DOSM) is the latest version released thus far.
Now, let’s use the PropertyGuru Home Loan Eligibility Calculator to work out maximum loan amounts and monthly payments for incomes across the states in Malaysia.
Loan calculation assumptions:
  • Loan term: 35 years
  • Interest rate: 4%
  • % spent on loan: 50%
  • Monthly debt obligations: RM500

What is household gross income by state

W.P. Kuala Lumpur
RM10,234
RM13,325
RM811,699
RM3,594
W.P. Putrajaya
RM10,056
RM13,473
RM795,438
RM3,522
Selangor
RM9,983
RM12,233
RM788,889
RM3,493
W.P. Labuan
RM6,904
RM8,250
RM510,869
RM2,262
Johor
RM6,879
RM8,517
RM508,611
RM2,252
Penang
RM6,502
RM8,267
RM474,508
RM2,101
Malacca
RM6,210
RM8,057
RM448,083
RM1,984
Terengganu
RM5,878
RM7,248
RM418,046
RM1,851
Negeri Sembilan
RM5,226
RM6,788
RM359,099
RM1,590
Sarawak
RM4,978
RM6,457
RM336,740
RM1,491
Pahang
RM4,753
RM5,777
RM316,414
RM1,401
Perlis
RM4,713
RM5,664
RM312,800
RM1,385
Sabah
RM4,577
RM6,171
RM300,604
RM1,331
Perak
RM4,494
RM5,779
RM293,151
RM1,298
Kedah
RM4,402
RM5,550
RM284,795
RM1,261
Kelantan
RM3,614
RM4,885
RM213,653
RM946

What Property Can Your Income Afford?

Ultimately, the property you can afford depends on your income and your financial situation. It’s important to do your research and speak to a financial advisor to get a clear picture of your options.
It’d be a waste of your time to go around looking for properties that are beyond your borrowing capability, right? Luckily, there are plenty of online mortgage calculators available to help you out, such as the PropertyGuru Home Loan Eligibility Calculator.
From these calculators, you’ll discover whether you can afford the property you want, or go for a less expensive property or put down a larger down payment. It’s also important to remember that your income may change over time. If you expect your income to increase in the future, you can factor that into your decision-making process.
There are thousands of properties listed for sale on PropertyGuru. So, let’s take a look at some of the options, based on various incomes.
The same loan calculation assumption will apply here as well:
  • Loan term: 35 years
  • Interest rate: 4%
  • % spent on loan: 50%
  • Monthly debt obligations: RM500
  • Down payment: 10%

1) Annual income: RM17,500

RM17,500 / RM1,458 per mth
RM21,000
18,745
83
Unfortunately, there aren’t any properties listed for sale at RM21,000 or below. At this stage, it’s best to focus on these:
  • Reducing debt or changing your lifestyle to save more
  • Increasing net income
  • Consolidating your debt for unsecured loans (not tied to any collateral, such as PTPTN and credit card bills
  • Improve your credit score
Additionally, you can also refer to this article on why loan applications are rejected, so that you can avoid the pitfalls!

2) Annual income: RM25,000

RM25,000 / RM2,083 per mth
RM83,000
RM75,208
RM333
There are several hundred apartments and flats listed for sale on PropertyGuru at RM83,000 or less. For example, there are two- or three-bedroom units in Rawang (from 600 sq ft) and Ipoh (from 517 sq ft).

3) Annual income: RM30,000

RM30,000 / RM2,500 per mth
RM124,000
RM112,924
RM50
There are more than 1,800 properties for sale, priced at RM124,000 or less. Several developments in Masai, Johor, with both two bedrooms and three bedrooms options, from 517 sq ft.
Other options to consider are:

4) Annual income: RM40,000

RM40,000 / RM3,333 per mth
RM206,945
RM188,132
RM833
You can discover more than 8,000 properties for sale priced from RM125,000 to RM207,000 on PropertyGuru.
For example, there’s Kota Laksamana Utama Apartment in Melaka, also known as Pangsapuri Kota Laksamana Utama. It is a leasehold walk-up property with facilities such as a jogging track, and playground. It’s also close to amenities such as banks, McDonald’s, Starbucks, Mahkota Parade Shopping Mall and Dataran Pahlawan. Available units start from 750 sq ft, with 3 bedrooms and 2 bathrooms.

Other properties with monthly payment around RM800 to consider are:

5) Annual income: RM50,000

RM50,000 / RM4,167 per mth
RM290,000
RM263,565
RM1,167
Cerrado @ Southville City is a serviced apartment by Mah Sing. It’s located in the 428-acre freehold township of Southville City in Bangi and was completed in 2020. There are several 656 sq ft (2-bedroom) units listed for sale on PropertyGuru.
The property is accessible via direct interchange from KL – Seremban Highway, and a short distance to the Bangi KTM station. Additionally, it is only a 10-minute drive from Southville City Toll to Sungai Besi Toll.
Want more? Well, there are more than 22,000 properties listed for sale from RM207,000 to RM290,000 to choose from. Take your time to pick what’s right for you!

6) Annual income: RM70,000

RM70,000 / RM5,833 per mth
RM455,500
RM413,980
RM1,833
For those looking for properties listed for sale between RM290,000 and RM455,500, there are more than 81,000 units to select from!
There’s i-Santorini, а lеаsеhоld соndоmіnіum аt Таnјung Tokong in Penang, that’s located 5 minutes frоm thе Маrіnа Ѕtrаіts Quау. Тhіs соndоmіnіum соnsіsts оf thrее tоwеrs wіth tоtаl оf 2,155 units. There’s only one type of unit at 850 sq ft, wіth three bеdrооms аnd two bаthrооms. It was developed by Ideal Property Group, and was completed in 2016.

Other properties options from RM290,000 to RM455,500 include:

7) Annual income: RM85,000

RM85,000 / RM7,083 per mth
RM579,000
RM526,904
RM2,333
With a single or household income of RM7,000 per month, you could explore Zeta DeSkye in Jalan Ipoh, KL. This freehold development was completed in 2016. Units listed for sale range from 966 sq ft to 1,271 sq ft, with three to four bedrooms. It’s low density, with only 284 units.
The condominium is also close to Jalan Kuching, which means access to major expressways such as the Jalan Duta-Sungai Buloh Expressway, Sentul Link, Duta Ulu-Kelang Expressway (DUKE), SPRINT, New Klang Valley Expressway (NKVE), and the Middle Ring Road 2 (MRR2).

There are actually more than 52,000 properties priced between RM445,500 and RM579,000 listed for sale, and they include:

8) Annual income: RM100,000

RM100,000 / RM8,333 per mth
RM704,000
RM639,829
RM2,83
Johorians, are you looking for a landed property to suit your growing family? There’s Setia Eco Gardens in Gelang Patah, Iskandar Malaysia. This 765-acre eco township is located and easily accessible via a network of highways.
Launched in 2007, Setia Eco Gardens offers double-storey terrace houses and double-storey bungalows an eco-living experience within a rainforest environment. Each precinct is gated and guarded to ensure privacy and peace of mind.

On PropertyGuru, you can browse through over 47,000 properties for sale that are priced between RM579,000 and RM704,000. They include:

9) Annual income: RM150,000

For those in the higher income bracket, let’s assume that they’d have higher monthly debt obligations. Let’s put it at RM1,500.
RM150,000 / RM12,500 per mth
RM870,000
RM790,470
RM3,500
One new township is set to liven up Petaling Jaya, and it’s none other than Damansara Central Park in Damansara Perdana. It is developed by Exsim Development, expected to be completed in the next 8 to 10 years.
The residential component includes D’Clover Residences, D’Cosmos Residences, D’Erica Residences, D’Quince Residences, D’Terra Residences, D’Tessera Residences, D’Vervain Residences, and D’Vine Residences.
This project is surrounded by mature neighourhoods such as Mutiara Damansara, Bandar Utama, Damansara Utama, Kota Damansara, Taman Tun Dr Ismail, Desa ParkCity and Tropicana, serviced by a network of major highways and expressways. Shopping malls, restaurants, educational institutions, medical centres, parks and a wide range of amenities are all within easy reach.
Another development within the vicinity, about a 5-minute drive away, is Foresthill Residences, with unit sizes ranging from 953 sq ft to 1,527 sq ft. There are 618 units across two towers, and units either face a lake view or hill view.

For more properties listed between RM704,000 and RM870,000, click here. There are more than 37,000 units listed! Check these out:

10) Annual income: RM200,000

For those in the higher income bracket, let’s assume that they’d have higher monthly debt obligations. Let’s put it at RM1,500.
RM200,000 / RM16,700 per mth
RM1.29 million
RM1,166,959
RM5,167
There are more than 111,000 units listed above RM900,000 on PropertyGuru. Whoa! And if you’re seeking luxury city living, where better to scour than Kuala Lumpur city centre itself.
Core Residence is a freehold serviced residence in the KL city centre, and it is the first residential project at TRX. There are 580 units, starting from 624 sq ft. Core Residence is also walking distance to Pavilion KL (800m), Royal Selangor Golf Club (850m), Prince Court Medical Centre (900m), and Petronas Twin Towers (1.8km).

Other options for properties above RM900,000 are:

You could also look for properties in other high-end locations such as Mont Kiara, Sri Hartamas, Bangsar, Damansara Heights, and Kenny Hills among others!
Asian family buy new house

Additional Costs For Homeownership

Alas, there are other costs that come associated with any property purchase. Here’s a look at some of the costs involved.
ItemCost
Down payment10% of the agreed purchase price
Legal Fees

Note: Recently updated on 15 July 2023. Discount eligible for SPA / Loan Agreement under the Housing Development (Control & Licensing) Act (‘HDA’).
Sale and Purchase Agreement (SPA) & Loan agreement

First RM500,000: 1.25% (subject to a minimum of RM500)

For the next RM7,000,000: 1%

Excess of RM7,500.000: Subject to negotiation on the excess but shall not exceed 1% of such excess
Stamp Duty for:

1) Memorandum of Transfer (MOT)

2) Sale and Purchase Agreement (SPA)

3) Loan Agreement


1) 1% – 4% of the purchase price

2) 0.5% – 1% of the purchase price

3) 0.5% – 1% of the purchase price
Stamp Duty Exemption For First-Time BuyersMalaysian Home Ownership Initiative (i-Miliki)

100% stamp duty exemption: Residential properties priced not more than RM500,000

75% stamp duty exemption: Residential properties priced from RM500,000 to RM1 million

100% stamp duty exemption for both instruments of transfer and loan agreement for a new-launch or a subsale property

The following criteria must be met:

This exemption will be for a SPA that is completed between 1 January 2021 to 31 December 2025.

It is only applicable to residential properties, excluding SOHO/SOFO/SOVO types, as well as serviced residences built for commercial use.

First-time homebuyers must be Malaysian citizens.

The buyer must not already own a residential property; if he/she has inherited a property or was given one (no matter if it’s an individual or joint ownership), then he/she is no longer eligible.

The exemption is given at 2 stages of transfer, i.e. from the property developer to a qualifying financial institution/bank, and from the bank to the Malaysian citizen.
Stamp Duty Exemption For Transfer Between Family Members100% stamp duty exemption: Between parents and children, or between grandparents and grandchildren.

Limited to the first RM1 million of the property’s value.

The remaining balance of the property’s value is subject to the ad valorem duty rate with a 50% remission of the stamp duty chargeable.

Applies to real estate transfer documents executed from 1 April 2023
Real estate agent fees/commissionMaximum of 3% of the property’s sale price, usually paid by the seller
Mortgage insurance (MLTA/MRTA)The premium depends on the type you choose, whether you want a plan that only takes care of the home loan or one that has an additional cash payout at the end
Valuation feeFrom 0.25% to 0.04% of the sub-sale property’s value
These are in addition to any renovation that you plan to undertake. Also, be prepared to pay monthly maintenance fees, if you’re living in a high-rise residential building. For the full list of costs involved, you may refer to this article, Budget 101: What To Prepare For Before Purchasing A Property?

Here are some additional tips for navigating the money maze when it comes to buying a property in Malaysia:

  • Get pre-approved for a mortgage loan before you start house hunting. This will give you an idea of how much you can afford to spend.

  • Consider your long-term financial goals. Are you planning to stay in the property for the long term? Or are you looking to move in a few years?

  • Factor in your other expenses. When you’re calculating how much you can afford to spend on a mortgage, don’t forget to factor in your other expenses, such as utilities, transportation, and food.

  • Negotiate. The asking price is just a starting point. You may be able to negotiate a lower price, especially if the property has been on the market for a while.
Disclaimer: The information is provided for general information only. PropertyGuru International (Malaysia) Sdn Bhd makes no representations or warranties in relation to the information, including but not limited to any representation or warranty as to the fitness for any particular purpose of the information to the fullest extent permitted by law. While every effort has been made to ensure that the information provided in this article is accurate, reliable, and complete as of the time of writing, the information provided in this article should not be relied upon to make any financial, investment, real estate or legal decisions. Additionally, the information should not substitute advice from a trained professional who can take into account your personal facts and circumstances, and we accept no liability if you use the information to form decisions.

How much loan can you get based on your salary?

The minimum loan tenure is typically 5 years, whereas the maximum loan tenure is 35 years or up to 70 years old, whichever is earlier and is subject to the bank's discretion.

If all required documents are prepared correctly, it’ll only take approximately one or two days for loan applicants to get a verbal answer to whether the bank has approved it. The official approval is usually provided within two weeks.

In Malaysia, there are three main types of home loans available: term, semi-flexi, and flexi loans.

It’s possible if you’ve low outstanding debts. Based on the parameters such as 35 years loan term, 4% interest rate, 50% spent on loan and monthly debt obligations around RM500, you can look for properties approximately RM200,000 or below.