How much will a bank actually lend me?
- Most lenders cap total debt repayments at 60 to 70 percent of net income, and count your existing commitments in that.
- Margin of finance is typically up to 90 percent for a first or second property, and lower for a third onward.
- The affordability calculator on this site models the same arithmetic, but a bank assesses income differently and may not count all of it.
Why did my valuation come in low?
- The bank values the property independently and lends against its figure, not the agreed price.
- If the valuation is below the price, you fund the gap in cash. This is a common reason purchases collapse.
- Registered sales for the same building or street are what a valuer looks at, which is what this site publishes.
Fixed or floating rate?
- Most Malaysian home loans float against a base rate, so repayments move when the OPR moves.
- A one-point rate move changes a 30-year instalment by roughly 12 percent. The OPR impact calculator shows this for your own figures.
- Fixed-rate products exist but usually carry a higher starting rate and a lock-in period.
Should I take the longest tenure?
- A longer tenure lowers the monthly instalment and raises total interest substantially.
- Tenure is normally capped at 35 years or your 70th birthday, whichever comes first.
- Paying extra monthly shortens the loan sharply. The mortgage calculator shows the interest saved.
What is a lock-in period?
- Most loans lock you in for two to five years, with a penalty of two to three percent of the original loan if you refinance or sell within it.
- Check the lock-in before refinancing to a lower rate — the penalty can exceed the saving.
- The refinance calculator compares the two, including the switching cost.
Educational only. Auction, legal, tax and financing terms differ by property and may change. Verify primary documents and seek qualified advice.