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How much home loan can I get in Malaysia? Loan eligibility calculator (2026)
Rules checked against official sources on .
Quick answer
A bank works out how much it will lend from your debt service ratio (DSR): the share of your monthly net income, after tax and EPF, that goes to all your loan repayments. Bank Negara Malaysia requires banks to use a prudent DSR but does not publish a single limit — each bank sets its own. The longest home loan is 35 years, and a third home loan is capped at 70% of the property's value.
Work out your own figure
An illustration, not a loan offer. The rate, the margin and the DSR limit you get depend on the bank and on you. The 4.5% starting figure is an example; type in the rate your bank quotes.
What Bank Negara actually sets
| Rule | What it says |
|---|---|
| Debt service ratio | Banks must assess affordability with a prudent DSR, on income after tax and EPF and counting all debts. No single limit is published; each bank sets its own. |
| Margin of financing, first and second home | No Bank Negara cap; each bank applies its own policy. |
| Margin of financing, third home loan | Capped at 70% of the property's value for individuals; 60% for non-individuals. |
| Longest loan period | 35 years. |
| Overnight policy rate (OPR) | 2.75%, set on 9 July 2025 and unchanged at the 3 September 2026 meeting. |
Frequently asked questions
What is the debt service ratio (DSR)?
The share of your monthly net income — after tax and EPF — that goes to all your loan repayments. It is your total monthly repayments divided by your monthly net income.
What is the maximum DSR in Malaysia?
Bank Negara Malaysia publishes no single limit. It requires banks to assess affordability using a prudent DSR, and each bank sets its own, so the same borrower can get different answers from different banks.
What is the longest home loan period in Malaysia?
35 years, the maximum set by Bank Negara Malaysia for financing the purchase of property.
How much can I borrow for a third property?
An individual's third housing loan is capped at 70% of the property's value. There is no Bank Negara cap on the first and second; banks apply their own policy.
Do banks use gross or net income for DSR?
Net income — after statutory deductions for tax and EPF — and they count all your debt obligations.
Official sources
- Measures to promote responsible financing practices, 18 November 2011 — Bank Negara Malaysia
- 70% loan-to-value limit on the third house financing facility, 3 November 2010 — Bank Negara Malaysia
- Maximum 35-year housing loan tenure — Bank Negara Malaysia
- Monetary Policy Statement, 3 September 2026 — Bank Negara Malaysia
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