Before buying a house, most people want to know how much they can borrow. For a quick answer to the maximum home loan you can possibly get, skip straight to our simple home loan eligibility calculator. If you want to learn more on how it is calculated, read on.
Factors that determine your maximum loan amount
How much a bank can lend to you depends on 4 key factors:
Knowing Your Maximum Borrowing Eligibility
Unless you are familiar and up to date with the credit guidelines of each bank in Malaysia, it can be very difficult to determine the max home loan amount available to you. This is especially so for businessmen, foreigners, Singaporeans, and Malaysians working overseas.
By making use of our online loan application service, you can know and understand your maximum borrowing ability for housing loans very quickly. All this is made possible because of our familiarity with the credit guidelines of banks in Malaysia.
Alternatively, checkout our simple housing loan affordability calculator for a quick indication on the maximum possible home loan available to you.
Myth #1 – Banks will only lend to you up to 1/3 of your gross income
This is only a recommended guideline for borrowers. In practice, banks use more refined rule sets during credit approval.
Myth #2 – The maximum loan amount you can get from each bank doesn’t vary much
There are enough exceptions to say that credit policies can differ greatly from 1 bank to another. Max borrowing amounts can even differ up to 3x between different banks.
Myth #3 – Banks only lend up to 70% of your DSR
This is only another rule of thumb and not particularly exact.
DSR = Commitment / Income
Between different banks, there can be major differences in the final DSR amount that is calculated. This is because every bank has their respective calculation methods for income and commitment recognition.
Example 1: Standard Chartered Bank may base their calculations on Gross Income, while RHB and Maybank may base it on Net Income.
Example 2: CIMB and HSBC may recognize 100% of rental income, while Public bank and OCBC may only recognize only 80%.
Example 3: RHB recognizes only 45% of foreign derived income, while Hong Leong considers 100% of it
It is not unheard of that when different banks calculate the DSR for the same person, there can be DSR differences of up to 20%! But the differences do not stop there.
Once the DSR has been determined, every bank will have their respective guidelines for max allowable DSR threshold. It is typically determined by income level, but may also be affected by net worth and even things as arbitrary as qualifications and age. Some example bank guidelines:
- See more at: http://loanstreet.com.my/learning-centre/how-much-you-can-borrow-based-on-dsr#sthash.7OxvHBj5.dpu
Myth #1 – Banks will only lend to you up to 1/3 of your gross income
This is only a recommended guideline for borrowers. In practice, banks use more refined rule sets during credit approval.
Myth #2 – The maximum loan amount you can get from each bank doesn’t vary much
There are enough exceptions to say that credit policies can differ greatly from 1 bank to another. Max borrowing amounts can even differ up to 3x between different banks.
Myth #3 – Banks only lend up to 70% of your DSR
This is only another rule of thumb and not particularly exact.
DSR = Commitment / Income
Between different banks, there can be major differences in the final DSR amount that is calculated. This is because every bank has their respective calculation methods for income and commitment recognition.
Example 1: Standard Chartered Bank may base their calculations on Gross Income, while RHB and Maybank may base it on Net Income.
Example 2: CIMB and HSBC may recognize 100% of rental income, while Public bank and OCBC may only recognize only 80%.
Example 3: RHB recognizes only 45% of foreign derived income, while Hong Leong considers 100% of it
It is not unheard of that when different banks calculate the DSR for the same person, there can be DSR differences of up to 20%! But the differences do not stop there.
Once the DSR has been determined, every bank will have their respective guidelines for max allowable DSR threshold. It is typically determined by income level, but may also be affected by net worth and even things as arbitrary as qualifications and age. Some example bank guidelines:
- See more at: http://loanstreet.com.my/learning-centre/how-much-you-can-borrow-based-on-dsr#sthash.7OxvHBj5.dpuf
Before buying a house, most people want to know how
much they can borrow. For a quick answer to the maximum home loan you can
possibly get, skip straight to Loanstreet’s simple home loan eligibility
calculator. If you want to learn more on how it is
calculated, read on.
Myth #1 – Banks will only lend to you up to 1/3 of your gross income
This is only a recommended guideline for borrowers. In practice, banks use more refined rule sets during credit approval.
Myth #2 – The maximum loan amount you can get from each bank doesn’t vary much
There are enough exceptions to say that credit policies can differ greatly from 1 bank to another. Max borrowing amounts can even differ up to 3x between different banks.
Myth #3 – Banks only lend up to 70% of your DSR
This is only another rule of thumb and not particularly exact.
DSR = Commitment / Income
Between different banks, there can be major differences in the final DSR amount that is calculated. This is because every bank has their respective calculation methods for income and commitment recognition.
Example 1: Standard Chartered Bank may base their calculations on Gross Income, while RHB and Maybank may base it on Net Income.
Example 2: CIMB and HSBC may recognize 100% of rental income, while Public bank and OCBC may only recognize only 80%.
Example 3: RHB recognizes only 45% of foreign derived income, while Hong Leong considers 100% of it
It is not unheard of that when different banks calculate the DSR for the same person, there can be DSR differences of up to 20%! But the differences do not stop there.
Once the DSR has been determined, every bank will have their respective guidelines for max allowable DSR threshold. It is typically determined by income level, but may also be affected by net worth and even things as arbitrary as qualifications and age. Some example bank guidelines:
- See more at: http://loanstreet.com.my/learning-centre/how-much-you-can-borrow-based-on-dsr#sthash.7OxvHBj5.dpuf
Factors that determine your maximum loan amount
How much a bank can lend to you depends on 4 key factors:
- Your Debt Servicing Ratio (DSR)
- An individual’s risk profile
- Property valuation
- The max Loan-to-Value (LTV) ratio / Margin of Finance available to you
This article covers only the DSR factor, and we will first address some common misconceptions.
Myth #1 – Banks will only lend to you up to 1/3 of your gross income
This is only a recommended guideline for borrowers. In practice, banks use more refined rule sets during credit approval.
Myth #2 – The maximum loan amount you can get from each bank doesn’t vary much
There are enough exceptions to say that credit policies can differ greatly from 1 bank to another. Max borrowing amounts can even differ up to 3x between different banks.
Myth #3 – Banks only lend up to 70% of your DSR
This is only another rule of thumb and not particularly exact.
Myth #1 – Banks will only lend to you up to 1/3 of your gross income
This is only a recommended guideline for borrowers. In practice, banks use more refined rule sets during credit approval.
Myth #2 – The maximum loan amount you can get from each bank doesn’t vary much
There are enough exceptions to say that credit policies can differ greatly from 1 bank to another. Max borrowing amounts can even differ up to 3x between different banks.
Myth #3 – Banks only lend up to 70% of your DSR
This is only another rule of thumb and not particularly exact.
Debt Servicing Ratio
The DSR is shows how much of a person’s income is used to service debt installments, and is represented as a % of income. It is derived from 2 main components:
DSR = Commitment / Income
Between different banks, there can be major differences in the final DSR amount that is calculated. This is because every bank has their respective calculation methods for income and commitment recognition.
Example 1: Standard Chartered Bank may base their calculations on Gross Income, while RHB and Maybank may base it on Net Income.
Example 2: CIMB and HSBC may recognize 100% of rental income, while Public bank and OCBC may only recognize only 80%.
Example 3: RHB recognizes only 45% of foreign derived income, while Hong Leong considers 100% of it
It is not unheard of that when different banks calculate the DSR for the same person, there can be DSR differences of up to 20%! But the differences do not stop there.
Once the DSR has been determined, every bank will have their respective guidelines for max allowable DSR threshold. It is typically determined by income level, but may also be affected by net worth and even things as arbitrary as qualifications and age. Some example bank guidelines:
The DSR is shows how much of a person’s income is used to service debt installments, and is represented as a % of income. It is derived from 2 main components:
DSR = Commitment / Income
Between different banks, there can be major differences in the final DSR amount that is calculated. This is because every bank has their respective calculation methods for income and commitment recognition.
Example 1: Standard Chartered Bank may base their calculations on Gross Income, while RHB and Maybank may base it on Net Income.
Example 2: CIMB and HSBC may recognize 100% of rental income, while Public bank and OCBC may only recognize only 80%.
Example 3: RHB recognizes only 45% of foreign derived income, while Hong Leong considers 100% of it
It is not unheard of that when different banks calculate the DSR for the same person, there can be DSR differences of up to 20%! But the differences do not stop there.
Once the DSR has been determined, every bank will have their respective guidelines for max allowable DSR threshold. It is typically determined by income level, but may also be affected by net worth and even things as arbitrary as qualifications and age. Some example bank guidelines:
Unless you are familiar and up to date with the credit guidelines of each bank in Malaysia, it can be very difficult to determine the max home loan amount available to you. This is especially so for businessmen, foreigners, Singaporeans, and Malaysians working overseas.
By making use of our online loan application service, you can know and understand your maximum borrowing ability for housing loans very quickly. All this is made possible because of our familiarity with the credit guidelines of banks in Malaysia.
Alternatively, checkout our simple housing loan affordability calculator for a quick indication on the maximum possible home loan available to you.
Before buying a house, most people want to know how
much they can borrow. For a quick answer to the maximum home loan you can
possibly get, skip straight to Loanstreet’s simple home loan eligibility
calculator. If you want to learn more on how it is
calculated, read on.
Factors that determine your maximum loan amount
How much a bank can lend to you depends on 4 key factors:- Your Debt Servicing Ratio (DSR)
- An individual’s risk profile
- Property valuation
- The max Loan-to-Value (LTV) ratio / Margin of Finance available to you (See here)
Myth #1 – Banks will only lend to you up to 1/3 of your gross income
This is only a recommended guideline for borrowers. In practice, banks use more refined rule sets during credit approval.
Myth #2 – The maximum loan amount you can get from each bank doesn’t vary much
There are enough exceptions to say that credit policies can differ greatly from 1 bank to another. Max borrowing amounts can even differ up to 3x between different banks.
Myth #3 – Banks only lend up to 70% of your DSR
This is only another rule of thumb and not particularly exact.
Debt Servicing Ratio
The DSR is shows how much of a person’s income is used to service debt installments, and is represented as a % of income. It is derived from 2 main components:DSR = Commitment / Income
Between different banks, there can be major differences in the final DSR amount that is calculated. This is because every bank has their respective calculation methods for income and commitment recognition.
Example 1: Standard Chartered Bank may base their calculations on Gross Income, while RHB and Maybank may base it on Net Income.
Example 2: CIMB and HSBC may recognize 100% of rental income, while Public bank and OCBC may only recognize only 80%.
Example 3: RHB recognizes only 45% of foreign derived income, while Hong Leong considers 100% of it
It is not unheard of that when different banks calculate the DSR for the same person, there can be DSR differences of up to 20%! But the differences do not stop there.
Once the DSR has been determined, every bank will have their respective guidelines for max allowable DSR threshold. It is typically determined by income level, but may also be affected by net worth and even things as arbitrary as qualifications and age. Some example bank guidelines:
- See more at: http://loanstreet.com.my/learning-centre/how-much-you-can-borrow-based-on-dsr#sthash.7OxvHBj5.dpu
Before buying a house, most people want to know how
much they can borrow. For a quick answer to the maximum home loan you can
possibly get, skip straight to Loanstreet’s simple home loan eligibility
calculator. If you want to learn more on how it is
calculated, read on.
Factors that determine your maximum loan amount
How much a bank can lend to you depends on 4 key factors:- Your Debt Servicing Ratio (DSR)
- An individual’s risk profile
- Property valuation
- The max Loan-to-Value (LTV) ratio / Margin of Finance available to you (See here)
Myth #1 – Banks will only lend to you up to 1/3 of your gross income
This is only a recommended guideline for borrowers. In practice, banks use more refined rule sets during credit approval.
Myth #2 – The maximum loan amount you can get from each bank doesn’t vary much
There are enough exceptions to say that credit policies can differ greatly from 1 bank to another. Max borrowing amounts can even differ up to 3x between different banks.
Myth #3 – Banks only lend up to 70% of your DSR
This is only another rule of thumb and not particularly exact.
Debt Servicing Ratio
The DSR is shows how much of a person’s income is used to service debt installments, and is represented as a % of income. It is derived from 2 main components:DSR = Commitment / Income
Between different banks, there can be major differences in the final DSR amount that is calculated. This is because every bank has their respective calculation methods for income and commitment recognition.
Example 1: Standard Chartered Bank may base their calculations on Gross Income, while RHB and Maybank may base it on Net Income.
Example 2: CIMB and HSBC may recognize 100% of rental income, while Public bank and OCBC may only recognize only 80%.
Example 3: RHB recognizes only 45% of foreign derived income, while Hong Leong considers 100% of it
It is not unheard of that when different banks calculate the DSR for the same person, there can be DSR differences of up to 20%! But the differences do not stop there.
Once the DSR has been determined, every bank will have their respective guidelines for max allowable DSR threshold. It is typically determined by income level, but may also be affected by net worth and even things as arbitrary as qualifications and age. Some example bank guidelines:
- See more at: http://loanstreet.com.my/learning-centre/how-much-you-can-borrow-based-on-dsr#sthash.7OxvHBj5.dpuf
Factors that determine your maximum loan amount
How much a bank can lend to you depends on 4 key factors:- Your Debt Servicing Ratio (DSR)
- An individual’s risk profile
- Property valuation
- The max Loan-to-Value (LTV) ratio / Margin of Finance available to you (See here)
Myth #1 – Banks will only lend to you up to 1/3 of your gross income
This is only a recommended guideline for borrowers. In practice, banks use more refined rule sets during credit approval.
Myth #2 – The maximum loan amount you can get from each bank doesn’t vary much
There are enough exceptions to say that credit policies can differ greatly from 1 bank to another. Max borrowing amounts can even differ up to 3x between different banks.
Myth #3 – Banks only lend up to 70% of your DSR
This is only another rule of thumb and not particularly exact.
Debt Servicing Ratio
The DSR is shows how much of a person’s income is used to service debt installments, and is represented as a % of income. It is derived from 2 main components:DSR = Commitment / Income
Between different banks, there can be major differences in the final DSR amount that is calculated. This is because every bank has their respective calculation methods for income and commitment recognition.
Example 1: Standard Chartered Bank may base their calculations on Gross Income, while RHB and Maybank may base it on Net Income.
Example 2: CIMB and HSBC may recognize 100% of rental income, while Public bank and OCBC may only recognize only 80%.
Example 3: RHB recognizes only 45% of foreign derived income, while Hong Leong considers 100% of it
It is not unheard of that when different banks calculate the DSR for the same person, there can be DSR differences of up to 20%! But the differences do not stop there.
Once the DSR has been determined, every bank will have their respective guidelines for max allowable DSR threshold. It is typically determined by income level, but may also be affected by net worth and even things as arbitrary as qualifications and age. Some example bank guidelines:
- See more at: http://loanstreet.com.my/learning-centre/how-much-you-can-borrow-based-on-dsr#sthash.7OxvHBj5.dpuf
