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Mortgage Calculator Malaysia

Calculate your home loan monthly repayment using reducing balance method. See total interest, income needed, and year-by-year amortisation schedule.

Reducing balance estimate. Actual repayments may include stamp duty, legal fees, and MRTA/MLTA insurance. Confirm with your bank.

Mortgage Details

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Malaysian home loans typically 3.5%–4.5% p.a.

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Enter your property details and tap Calculate Mortgage.

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DSR Check

Most Malaysian banks require your total monthly debt commitments (including this mortgage) to be below 60% of gross income. Use our DSR Calculator to check before applying.

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Down Payment

First-time buyers can qualify for 90% margin of finance (10% down payment). Some government schemes offer up to 100% financing for eligible buyers.

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Tenure vs Interest

A 30-year loan costs significantly more in total interest than a 25-year loan. If your DSR allows, choosing a shorter tenure saves tens of thousands of ringgit.

Home Loan Calculator Malaysia — Complete Mortgage Guide

Buying a home in Malaysia is the biggest financial decision most people make. Understanding your mortgage repayment, total interest cost, and the income required to qualify helps you plan confidently and negotiate with lenders from a position of knowledge.

How Malaysian Home Loans Work

Unlike car loans (flat rate), Malaysian home loans use reducing balance interest. You pay interest only on the outstanding balance — as you repay principal, your interest charge falls each month. The standard formula uses the same monthly payment throughout the loan period.

25-Year vs 30-Year Loan: Real Cost Comparison

Parameter25 Years30 Years35 Years
Loan (RM400k @ 4%)
Monthly PaymentRM 2,112RM 1,910RM 1,766
Total RepaymentRM 633,600RM 687,600RM 741,720
Total InterestRM 233,600RM 287,600RM 341,720
Extra vs 25yr+RM 54,000+RM 108,120

Down Payment & Margin of Finance Rules

PropertyMax FinancingMin Down Payment
1st property (any price)90%10%
2nd property70%30%
3rd property & above70%30%
Property above RM1M70%30%

Extra Costs to Budget When Buying Property in Malaysia

  • Stamp duty (MOT): 1% on first RM100k, 2% on RM100k–RM500k, 3% above RM500k
  • Legal fees (SPA + Loan): approximately 0.4–0.8% of property price
  • Valuation fee: ~0.25% of property value (required for secondary market)
  • MRTA / MLTA insurance: 1–3% of loan amount (mortgage life insurance)
  • Fire insurance: mandatory for mortgaged properties, ~RM200–500/year

Strategies to Pay Off Your Mortgage Faster

  • 1. Make one extra full payment per year — reduces a 30-year loan by ~4–5 years
  • 2. Round up your monthly payment — RM2,110 rounded to RM2,200 saves thousands
  • 3. Use windfall income (bonus, tax refund) for lump-sum partial settlement
  • 4. Refinance if market rates drop significantly (consider legal and valuation costs)
  • 5. Choose a flexi loan account — deposits reduce daily outstanding balance

Frequently Asked Questions

What is the current home loan interest rate in Malaysia?
Malaysian home loan rates are typically pegged to the Base Rate (BR). As of 2024, effective home loan rates range from approximately 3.5% to 4.5% p.a. depending on the bank, your credit profile, and property type.
How much down payment is needed for a house in Malaysia?
For a first property below RM500,000, banks can finance up to 90% (10% down payment). For a second property, the margin drops to 70% (30% down). First-time buyer schemes may offer higher financing ratios.
What is the maximum mortgage tenure in Malaysia?
Bank Negara Malaysia caps home loan tenure at 35 years, or until the borrower turns 70, whichever is earlier. Most buyers opt for 25 to 30 years.
What income do I need to qualify for a mortgage in Malaysia?
Malaysian banks use DSR (Debt Service Ratio). Most banks cap DSR at 60–70%. A rough rule: mortgage payment should not exceed 30–33% of gross monthly income.
What extra costs should I budget for when buying a house in Malaysia?
Budget for: stamp duty on SPA (1–3%), legal fees (0.4–0.8%), valuation fee (~0.25%), MRTA/MLTA insurance, and a loan processing fee. First-time buyers may qualify for stamp duty exemptions.
Should I choose a 25-year or 30-year mortgage in Malaysia?
A 30-year loan has lower monthly payments but costs more in total interest. For a RM400,000 loan at 4%: 25 years costs ~RM233,600 in interest vs ~RM287,600 for 30 years — RM54,000 more. Choose shorter tenure if your DSR allows.