The maximum loan tenure banks will grant to borrowers is 35 years. If based on the borrower’s age, it’ll be 70 years.

In Malaysia, there are developments known as Tanah Rizab Melayu. These projects have homebuyer guidelines that are set by the government. There's also a difference between Bumiputera and Tanah Rizab Melayu homes. You can read all about it here!

SPA is short the legal document called the “Sales and Purchase Agreement”. It's a contract between you and the developer and it'll contain all of the information about the house!

P.S. This $$ figure is the one that's going to be on your SPA and Loan Agreement.

Your cheat sheet;
- Early Bird: 10%
- Bumiputera Discount: 7%

Just FYI, the Bumiputera discount applies solely to the homes that are allocated for people with Bumiputera status.

If you're purchasing a non-Bumiputera house, the discount won't apply. :(

This is the actual amount that you'll need to pay for your house! Head over to the next section to see the loan $$ amount you'll need to apply for and what the monthly instalment will be!

1st and 2nd-time homebuyers are eligible for a maximum loan financing of 90%. For 3rd-time buyers, your eligibility ranges from 70%-80%.

FYI! If you're getting a rebate of more than 10%, you can opt to have a lower loan margin as it'll decrease your monthly repayment. Or, you can maintain the usual 90% and use the rebates as cashback to style up your home when it's done!

The loan amount is based on the SPA price. If the loan margin the homebuyer receives is 90% , then the loan amount will be 90% of the SPA price.

The higher your tenure, the lower your monthly repayment. The maximum loan tenure is 35 years or up to 70 years of age, whichever is earlier!

The interest rate varies according to the OPR (Overnight Policy Rate) set by Bank Negara as well as the BLR (base lending rate) and BFR (base financing rate) which will be adjusted by the Banks.

FYI! The average interest rate ranges between 3.0% and 4% as of 2021.

From your loan amount, tenure, and interest %, we can calculate your monthly installment.

Differential sums refer to the amounts that the homebuyer will need to bear.

Example: You receive a 90% loan from the bank, the differential sum you'll need to pay for will be the remaining 10%.

If your "differential sum" is a negative value it means you're receiving a cashback! If it is a positive value, then it refers to the amount you'll need to pay for.

The banks are more concerned with your nett income to see if you can afford this home! So key that in instead of your gross income.

Gross Income refers to your salary before any deductions or taxes.

Nett Income refers to the $$ you actually get every month after deductions for your EPF, tax, etc.!

Key in all of your current commitments. This will help you understand how much loan you are eligible for. It'll also be your personal credit check you'll run on yourself.

The formula is as follows:

The formula is as follows:

Notes: SPA Legal Fees are based on the Property SPA Price

Loan Amount x 0.5%

The formula is as follows:

Notes: Loan Legal Fees are based on the Loan Amount

The cost of MRTA depends on a number of factors such as your age, the value of your home loan, and the length of your home loan.

However, the MRTA amount very rarely to exceed 5% of the loan amount.

**MRTA is optional and most often, will be included as part of the loan. However, there are other options called MLTA and Hibah Takaful.

Based on the total income of the Primary Loan Applicant / Primary and Joint Loan Applicant

Based on the total commitment of the Applicant / Applicants

This is the DSR before including your monthly Installment.

Sum of monthly household commitment and loan installment amount which will be used to generate the latest DSR calculation which banks will use to evaluate the applicant

This is the DSR % that matters to the bank.

Myra's Golden Rule states that it's best to keep this below 60%!

If your DSR is above 65%, it might be hard for you to get your loan approved.

So this is what you can do:

1. Reduce your commitments
2. Apply for a Joint Loan with either your spouse, parents or siblings.