5 home buying tips from malaysia housing loan 1
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Buying a house can be so much fun and full of excitement, but at the same time it can be nerve-wrecking and stressful too.


Most people buy a house to start a family, for a new beginning, to have a place to call home or to create new memories. Some said HOME is where the heart is. But, the journey of buying a house can be a bumpy road if you don't have proper knowledge.

Hence, we at MalaysiaHousingLoan.Net would like to share a few tips and tricks before buying a house.

1. Evaluate Yourself

Before you even begin your house hunting journey, it is important to evaluate what exactly you can afford. You can do so by calculating how much cash you have in hand and list them down as below:

Cash in the bank A: RM30,000
Cash in the bank B: RM20,000
EPF Account 2: RM40,000

Total cash I have to buy a house: RM90,000

2. How Much Do You Need To Buy A House?

Now that you know how much cash you have, the next step is to calculate the property price that you can buy.

Make sure the estimate of all cost you need when buying a house is about 17% from the Purchase Price.

So, let's do a backwards calculation to know how much the property price that you can purchase.

(RM90,000 x 100) / 17 = RM530,000

So, the maximum purchase price you are entitled is RM530,000, which means you can go for properties priced as high as RM530,000.

Note: 17% is including 10% down payment, SPA and loan legal fees, stamp duty, as well as valuation fees.

3. What Is Your Home Loan Eligibility?

Calculating your eligibility for home loan can be a bit tricky, but for the sake of general idea, you can just do a simple calculation.

The calculation will require net income, all commitments, installments, and the new home loan installment.

For Example:

Net income: RM5,000
The allowable commitments amount is RM5000 x 70% = RM3,500

Your commitment should not exceed RM3,500 per month or 70% from your net income including the new home loan installment.

If the commitments are:
New home loan: RM2,200
(Installment based on RM530,000 x 90% = RM477,000, 35 years, 4.30%)
Car loan installment: RM600
Personal loan: RM650

Total Commitments: RM2,200 + RM600 + RM650 = RM3,450

DSR Over Net Income: RM3,450 / RM5,000 x 100 = 69% (Ideal!)

Note: Debt Service Ratio (DSR) 70% is the most common calculation percentage used to calculate loan eligibility. However, there is exceptional DSR for a certain range of income. Some banks will only take 50-60% DSR for income less than RM3,000-4,000 and some will take up to DSR 80%-85% for income above RM8,000-10,000 per month.
* For all government staff, the calculation would be slightly different because they may have commitments deduction in the pay slip. It is advisable to contact us for the calculation.

Bear in mind that this is just a preliminary calculation. To get an accurate calculation, please get in touch with our experienced consultant at 012-6946746 or contact us at MalaysiaHousingLoan.net.

4. Print CCRIS Report

Get your CCRIS report printed out before purchasing a house.


Now that you know everything about yourself financially, there is one more thing that can hamper the whole property buying plan - your CCRIS report!

If you have not paid your commitments on time, it will reflect in your CCRIS report and this will jeopardise your home loan approval. There are many cases that we have encountered with where clients were surprised with their CCRIS conduct.

One thing you need to know is that once your application is rejected, it will be difficult to get it approved again.

5. You're Ready!

If all the above-mentioned matters are sorted out, we guess you're now ready to buy a house.

You can start talking to us at MalaysiaHousingLoan.Net. We will give more in-depth advice on how to negotiate with the seller, agent or banker. We will also provide you with the most valuable and useful advice.

Things we will share with you: -

- How to negotiate with seller or agent?
- How to identify that your property agent is a registered agent?
- What should you do before placing your booking?
What additional clauses you should add to your Letter of Purchase before agreeing to buy?
What documents agent/seller should provide when putting down your deposit?
How to avoid being tricked by agent and seller?
Why you shouldn't pass your income documents to property agent?
Know your rights! You don't need to appoint seller or agent lawyer as your SPA lawyer.
… and lots more.

Head over to MalaysiaHousingLoan.Net if you want more tips and tricks for buying a house or applying for a home loan. And, don't forget to subscribe to our Youtube channel for new video updates!

Lastly, don't forget to check out PropSocial when searching for your new home!

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Great reverse engineering calculation examples! To do self check on your own affordability

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Ultimately, its all about evaluating yourself before purchasing.

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Yes, agree with you where self evaluation is important before purchasing.

However there will still be cases where the Owner is not able to anticipate the heavy commitment, and end up not able to repay the loan... That is why we still see properties up for Auction (aka lelong) from the banks. 

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Yes, best is to do own evaluation with the method stated to see if we can afford or not with the available commitments.