1. What is Home Loan Eligibility?

Home loan eligibility in Malaysia is determined by banks based on your income, existing debts, and the bank's risk assessment. It represents the maximum amount you can borrow for a property purchase.

2. How Does the Calculator Work?

The calculator uses the standard eligibility formula:

Where:

• Income — Your gross monthly income (RM)
• Multiplier — Typically 3.5-5.5 times your income (varies by bank)
• Debts — Your monthly debt commitments (RM)

Explanation: Banks in Malaysia generally lend 3.5-5.5 times your monthly income, minus any existing monthly debt obligations.

3. Importance of Loan Eligibility Calculation

Details: Knowing your loan eligibility helps you understand your property budget, avoid disappointment when applying for loans, and plan your finances better.

4. Using the Calculator

Tips:

• Enter your gross monthly income (before tax)
• Use 5.5 as multiplier for conservative estimate (some banks may offer higher)
• Include all monthly debt payments (car loans, personal loans, credit cards, etc.)

5. Frequently Asked Questions (FAQ)

Q1: What is the typical loan multiplier in Malaysia?
A: Most banks offer 3.5-5.5 times your monthly income, though some may go up to 7-10 times for certain borrowers.

Q2: Does this include the 70-90% margin of financing?
A: No, this is the gross eligible amount. The actual loan amount will be 70-90% of property price, whichever is lower.

Q3: What debts should I include?
A: Include all monthly commitments: car loans, personal loans, credit card minimum payments, other property loans, etc.

Q4: How accurate is this calculator?
A: This provides an estimate. Actual eligibility depends on your credit score, employment type, and bank's internal policies.

Q5: Can I increase my eligibility amount?
A: Yes, by increasing your income, reducing debts, or applying jointly with a co-borrower.