Here’s a detailed guide on how to get approved for a mortgage with low income in Malaysia:
How to Get Approved for a Mortgage with Low Income in Malaysia
Buying a home in Malaysia can be challenging if you have a low income, but it is not impossible. Banks and financial institutions consider various factors when approving mortgage applications. By following the right strategies, you can increase your chances of approval.
1. Understand the Eligibility Criteria
Before applying for a home loan, understand the bank’s requirements:
- Minimum Income – Most banks require a minimum monthly income (e.g., RM3,000).
- Debt Service Ratio (DSR) – Banks check your DSR, which should ideally be below 60% (varies by bank).
- Credit Score – A good credit score (CTOS/CCRIS) increases approval chances.
2. Choose Affordable Properties
- Look for homes under government housing schemes such as PR1MA, MyHome, or Rumah Selangorku.
- Consider apartments, flats, or homes outside city centers for lower prices.
3. Improve Your Debt Service Ratio (DSR)
- Reduce Existing Debts – Pay off personal loans and credit card balances.
- Increase Income – Consider side jobs, freelancing, or passive income sources.
- Apply for a Longer Loan Tenure – Extending your mortgage to 30-35 years lowers monthly payments.
4. Apply for Government Assistance Programs
- Skim Rumah Pertamaku (SRP) – Offers 100% financing for first-time homebuyers earning below RM5,000 per month.
- MyDeposit Scheme – Provides a 10% down payment subsidy for eligible buyers.
- Rent-to-Own (RTO) Programs – Allows you to rent first and buy later.
5. Improve Your Credit Score
- Pay bills and loans on time.
- Avoid late payments or defaults.
- Regularly check your CTOS and CCRIS reports for accuracy.
6. Find a Joint Applicant
- Apply with a spouse, sibling, or family member to combine incomes and improve loan eligibility.
7. Make a Larger Down Payment
- Save at least 20% of the property price to lower your loan amount and increase approval chances.
8. Choose the Right Bank
- Compare mortgage packages from different banks.
- Some banks offer special home loans for low-income individuals.
9. Provide Additional Income Proof
- If you have extra income from rentals, side businesses, or investments, provide supporting documents.
10. Get Professional Help
- Consult mortgage brokers or financial advisors to find the best home loan options.
By following these steps, you can improve your chances of getting a mortgage even with a low income. Always compare different options and seek professional advice if needed.
