Housing Loan Recommendations & Comparison Based on Salary in Malaysia
When applying for a housing loan (mortgage loan) in Malaysia, your salary determines how much you can borrow. Banks assess your Debt Service Ratio (DSR), credit score, and financial stability before approving your loan.
This guide provides a loan comparison from different banks and explains how much loan you qualify for based on your salary.
1. How Much Housing Loan Can You Get Based on Salary?
Most banks in Malaysia allow a DSR between 30% and 70%, but an ideal DSR is below 50% for higher approval chances.
💡 Formula to Calculate Maximum Loan Installment: Maximum Installment=Net Income×DSR\text{Maximum Installment} = \text{Net Income} \times \text{DSR}%
🔹 Assumption: Loan tenure of 35 years, interest rate of 4% per annum
| Monthly Salary (RM) | Max Installment (50% DSR) | Estimated Loan Amount |
|---|---|---|
| RM3,000 | RM1,500 | RM320,000 |
| RM5,000 | RM2,500 | RM540,000 |
| RM8,000 | RM4,000 | RM860,000 |
| RM10,000 | RM5,000 | RM1,080,000 |
| RM15,000 | RM7,500 | RM1,620,000 |
2. Housing Loan Comparison (Malaysia 2025)
Comparison of Housing Loans in Malaysia
| Bank | Loan Name | Interest Rate (p.a.) | Loan Tenure | Min. Salary Requirement | Max. Loan Amount | Special Features |
|---|---|---|---|---|---|---|
| Maybank | Maybank HouzKEY | 3.85% – 4.10% | Up to 35 years | RM3,000 | Up to 90% of property value | No down payment required |
| CIMB | CIMB Home Loan | 3.95% – 4.25% | Up to 35 years | RM3,500 | RM600,000+ | Lower interest for first-time buyers |
| RHB | RHB My1 Home Loan | 4.00% – 4.30% | Up to 35 years | RM4,000 | RM750,000+ | Fast approval process |
| HSBC | HSBC HomeSmart | 4.10% – 4.50% | Up to 35 years | RM8,000 | RM1,000,000+ | Flexible installment options |
| Public Bank | Public Bank Home Loan | 4.00% – 4.35% | Up to 35 years | RM5,000 | RM800,000+ | Cashback option available |
| OCBC | OCBC Home Loan | 3.90% – 4.20% | Up to 35 years | RM6,000 | RM900,000+ | No lock-in period option |
3. Recommended Housing Loan Options Based on Salary
| Salary Range | Loan Type | Best Bank/Provider | Notes |
|---|---|---|---|
| RM3,000 – RM5,000 | First-time home buyer loans | Maybank HouzKEY, BSN MyHome | Requires a stable job with at least 6 months income proof |
| RM5,000 – RM8,000 | Standard mortgage loan | CIMB Home Loan, RHB My1 Home Loan | Flexible repayment terms |
| RM8,000 – RM15,000 | High-value home financing | HSBC HomeSmart, OCBC Home Loan | Competitive interest rates |
| RM15,000+ | Premium & Investment Loans | Public Bank Home Loan, UOB Mortgage | Higher borrowing limits |
4. How Banks Evaluate Your Housing Loan Eligibility
🔹 Key Factors Considered by Banks:
✅ Debt Service Ratio (DSR) – Should be below 50% for higher approval chances.
✅ Credit Score (CTOS/CCRIS Report) – A clean credit history increases approval chances.
✅ Employment Stability – Minimum of 6 months to 1 year in current job is preferred.
✅ Deposit (Down Payment) – Most banks require 10% to 20% down payment.
5. Housing Loan Example Calculation
💡 Example 1: Salary RM5,000 per month
- Max Loan Installment (50% DSR): RM2,500
- Loan Amount (35 years, 4% interest): RM540,000
- Property Price You Can Afford: RM600,000 (assuming 10% down payment)
💡 Example 2: Salary RM10,000 per month
- Max Loan Installment (50% DSR): RM5,000
- Loan Amount (35 years, 4% interest): RM1,080,000
- Property Price You Can Afford: RM1,200,000 (assuming 10% down payment)
6. Tips to Improve Housing Loan Approval Chances
✅ Improve Your Credit Score – Settle outstanding debts before applying.
✅ Lower Your DSR – Reduce existing loans (car loan, personal loan, credit card).
✅ Save for a Higher Down Payment – A 20% down payment reduces loan rejection risk.
✅ Choose a Longer Tenure – Opt for 30 to 35 years tenure to lower monthly installment.
Final Thoughts
Your salary directly affects how much home loan you can borrow. Always compare different bank loan options and use a mortgage calculator before making a decision.
