Malaysian Housing Loan Calculator
Estimate your monthly installments, borrowing power, Debt Service Ratio (DSR), and upfront closing costs for your next property with PropertyLab.
What this calculator does
Estimate the monthly installment on a Malaysian housing loan, how much you can borrow from your income, your Debt Service Ratio (DSR) and the upfront costs of buying: stamp duty on the Memorandum of Transfer (MOT) and on the loan agreement, legal fees and the valuation fee. For example, a RM 600,000.00 home with a 10% downpayment over 30 years at 4.25% p.a. has a monthly installment of about RM 2,656.48.
Worked example
Calculated with the same formulas as the calculator, using its starting values.
| Item | Amount |
|---|---|
| Property price | RM 600,000.00 |
| Downpayment (10%) | RM 60,000.00 |
| Loan amount (margin of finance 90%) | RM 540,000.00 |
| Tenure and interest rate | 30 years at 4.25% p.a. |
| Monthly installment | RM 2,656.48 |
| Total repayment over 30 years | RM 956,331.15 |
| DSR (income RM 15,000.00, existing commitments RM 1,500.00) | 27.71% |
| MOT stamp duty | RM 12,000.00 |
| Legal fees for the Sale and Purchase Agreement (SPA) | RM 7,250.00 |
| Loan agreement stamp duty (0.5%) | RM 2,700.00 |
| Loan agreement legal fees | RM 6,650.00 |
| Valuation fee (estimate) | RM 1,250.00 |
| Total upfront costs | RM 29,850.00 |
| Cash needed at purchase (downpayment + upfront costs) | RM 89,850.00 |
Assumptions
- The installment assumes equal monthly payments and the same interest rate for the whole tenure. On a floating-rate loan the installment changes when the rate changes.
- MOT stamp duty uses the tiered rates for Malaysian citizens (1% up to RM 100,000, 2% up to RM 500,000, 3% up to RM 1,000,000 and 4% above). From 1 January 2026, residential property bought by a non-citizen without permanent residence is stamped at a flat 8%. Exemptions and remissions are not applied.
- Loan agreement stamp duty is 0.5% of the loan amount (RM 5 per RM 1,000).
- Legal fees follow the Solicitors’ Remuneration Order 2023 scale (1.25% of the first RM 500,000 with a minimum of RM 500, and 1% of the next RM 7 million). The discount of up to 25% allowed on subsales, service tax (SST) and disbursements are not included.
- The valuation fee is an estimate from a tiered scale; the actual fee is set by the valuer and the bank.
- DSR = (existing commitments + new installment) ÷ gross monthly income. Bank Negara Malaysia does not set a single DSR limit; this calculator colours 60% and 70% as guide levels.
- Malaysia’s Overnight Policy Rate (OPR) is 2.75% as at 3 September 2026 (Bank Negara Malaysia). The starting rate of 4.25% p.a. is an example, not a bank quote. See the data →
Malaysian housing loan FAQ
How much downpayment do I need to buy a home in Malaysia?
Many buyers put down 10% of the price (a 90% loan) for a first or second home, and this calculator starts at 10%. Bank Negara Malaysia caps the loan-to-value ratio at 70% for an individual’s third and subsequent housing loan, so you need at least 30% then. The actual margin of finance is decided by the bank.
What is the Debt Service Ratio (DSR), and what do banks accept?
DSR is the share of your gross monthly income that goes to loan repayments, including the new housing loan. Bank Negara Malaysia does not set a single limit; banks assess affordability on income after statutory deductions and living costs. This calculator shows below 60% in green, 60% to 70% in yellow and above 70% in red. In the worked example the DSR is 27.71%.
How is the stamp duty on the Memorandum of Transfer (MOT) calculated?
On the price or the market value, whichever is greater: 1% of the first RM 100,000, 2% of the part up to RM 500,000, 3% of the part up to RM 1,000,000 and 4% of the part above. On RM 600,000.00 it is RM 12,000.00. From 1 January 2026, residential property sold to a non-citizen without permanent residence is stamped at a flat 8%. The Budget 2026 speech proposed extending the full stamp duty exemption for first homes up to RM 500,000 to 31 December 2027. This calculator does not apply exemptions.
What is the maximum housing loan tenure in Malaysia?
35 years. Bank Negara Malaysia has limited housing loan tenures to 35 years since July 2013. Within that limit, the bank sets the tenure for each borrower.
What other upfront costs should I prepare for?
Stamp duty on the MOT and on the loan agreement (0.5% of the loan), legal fees for the Sale and Purchase Agreement and the loan agreement (Solicitors’ Remuneration Order 2023: 1.25% of the first RM 500,000 with a minimum of RM 500, then 1% of the next RM 7 million) and a valuation fee. In the worked example they total RM 29,850.00. Service tax (SST) and disbursements are not included.
How does the OPR affect my housing loan rate?
For floating-rate loans taken from 1 August 2022, the rate is the bank’s Standardised Base Rate (SBR) plus a spread, and the SBR equals the OPR. Banks adjust the SBR within 7 working days of an OPR change. Loans taken before 1 August 2022 stay on the BR or BLR, which move by the same amount.
Sources
The rules used in the assumptions were checked against these official documents on 21 October 2026.
- Inland Revenue Board of Malaysia (LHDN) — Stamp Act 1949 (Act 378), as at 1 January 2024 ↗
- Inland Revenue Board of Malaysia (LHDN) — Akta Kewangan 2025 (Akta 874) ↗
- Inland Revenue Board of Malaysia (LHDN) — Ucapan Belanjawan 2026 ↗
- Malaysian Bar — Solicitors' Remuneration Order 2023, P.U. (A) 207 (Bar Council Circular No 185/2023) ↗
- Bank Negara Malaysia (BNM) — Measures in Promoting a Stable and Sustainable Property Market and Sound Financial and Debt Management of Households ↗
- Bank Negara Malaysia (BNM) — Deputy Governor's Remarks: Malaysia's Experience in Macroprudential Policies ↗
- Bank Negara Malaysia (BNM) — Responsible lending guidelines ensures borrowers' affordability ↗
- Bank Negara Malaysia (BNM) — Policy Document: Reference Rate Framework (issued 27 March 2026) ↗
- Property Lab — BNM Overnight Policy Rate (OPR)