Best Malaysia PropertiesMost Malaysian banks will lend you enough that all your monthly debt repayments, including the new home loan, come to no more than about 60–70% of your take-home pay. That ratio is your debt service ratio (DSR). At an illustrative 4.25% rate over 35 years, every RM100,000 borrowed costs about RM458 a month. So someone taking home RM5,000 with a RM500 car loan could typically borrow roughly RM550,000–RM650,000. Your actual limit depends on the bank, your credit record and the property.
What DSR is and how banks calculate it
CIMB defines DSR as the share of your monthly net income that goes to debt repayments:
DSR = total monthly debt commitments ÷ net monthly income × 100
- Net income is take-home pay after EPF, SOCSO/EIS and income tax deductions, not your gross salary. Some banks also count fixed allowances, commission or rental income, usually with supporting documents.
- Commitments are the fixed repayments that appear in your CCRIS report: existing housing loans, car hire purchase, personal loans, PTPTN, credit card repayments and other instalment plans, which can include some BNPL plans. The new home loan instalment is added in.
CIMB's general benchmarks are below 40% (excellent), 40–60% (good), 60–70% (borderline, may need more income proof) and above 70% (high risk of rejection). Most banks prefer a DSR under 60%. Some accept more for higher earners, but each bank sets its own internal limits. There is no single official cap.
Today's rates (as of November 2026)
Bank Negara's Overnight Policy Rate (OPR) is 2.75%. It was cut by 25 basis points in July 2025 and held at every 2026 meeting through 3 September. The final 2026 decision is on 5 November. Floating home loans are priced off a bank's reference rate plus a spread. For example, Hong Leong Bank's published Standardised Base Rate is 2.75% and its Base Rate 3.63% (effective 14 July 2025). Your effective rate depends on the spread you are offered. Because of that, the examples below use 4.25% as an illustration only.
| Rate | Monthly instalment per RM100,000 (35 years) | Per RM100,000 (30 years) |
|---|---|---|
| 4.00% | RM443 | RM477 |
| 4.25% | RM458 | RM492 |
| 4.50% | RM473 | RM507 |
Worked examples by take-home pay
The examples assume 4.25%, a 35-year tenure (with 30 years for comparison) and the existing commitments shown. "Room for instalment" is net income × DSR limit minus existing commitments. Loan amounts are rounded to the nearest RM1,000.
| Net monthly income | Existing commitments | DSR limit | Room for instalment | Max loan, 35 years | Max loan, 30 years |
|---|---|---|---|---|---|
| RM3,000 | None | 60% | RM1,800 | ~RM393,000 | ~RM366,000 |
| RM3,000 | None | 70% | RM2,100 | ~RM459,000 | ~RM427,000 |
| RM5,000 | RM500 | 60% | RM2,500 | ~RM546,000 | ~RM508,000 |
| RM5,000 | RM500 | 70% | RM3,000 | ~RM655,000 | ~RM610,000 |
| RM8,000 | RM800 | 60% | RM4,000 | ~RM874,000 | ~RM813,000 |
| RM8,000 | RM800 | 70% | RM4,800 | ~RM1,048,000 | ~RM976,000 |
| RM12,000 | RM1,500 | 60% | RM5,700 | ~RM1,245,000 | ~RM1,159,000 |
| RM12,000 | RM1,500 | 70% | RM6,900 | ~RM1,507,000 | ~RM1,403,000 |
Two things stand out. First, a RM500 car loan reduces what you can borrow by roughly RM110,000 at these assumptions. Second, a shorter tenure lowers the maximum loan by about 7%.
Other limits besides DSR
- Margin of finance (LTV): banks commonly lend up to 90% on your first and second homes. Bank Negara caps the loan at 70% on your third outstanding housing loan. So even if your DSR allows more, the loan cannot exceed the margin times the price or valuation, whichever is lower.
- Tenure: the maximum housing loan tenure is 35 years. Banks also limit tenure by your age, often to retirement age or a set age limit, so older applicants get shorter tenures and smaller loans.
- Valuation: if the bank's valuer comes in below the price, the margin applies to the lower figure and you fund the gap in cash.
- Credit record: late payments in CCRIS, or a record in CTOS or other credit reporting agencies, can lead to rejection even when your DSR is fine.
How to improve your number
- Clear small debts first. Paying off a personal loan or a car loan frees up room in your DSR for the home loan.
- Avoid new instalments (car, BNPL, 0% card plans) in the months before you apply.
- Declare all stable income with documents: allowances, commission, rental income or a joint borrower's salary.
- Check your CCRIS for free through Bank Negara's eCCRIS so there are no surprises.
- Remember the cash costs. On top of the down payment you need about 5% of the price for fees and stamp duty. See our full cost of buying a home guide.
Matching your budget to real projects
Once you know your range, use our data to shortlist. The best condos ranking and best landed homes pages show scores, psf and tenure. The property map lets you filter by area. For example, a ~RM450,000 loan with a 10% down payment points to homes around RM500,000. Compare the price ranges on each property page in areas such as Puchong or Setia Alam.