How much Loan you can get in Malaysia based on your current income?

tl;dr Navigate to here and here to calculate how much loan you can get from bank.

In my recent conversation with friends and colleagues, almost everyone talk about the same topic - when to own a house and how much they can afford?

There is no solid answer as personal expenses are greatly depend on each individual life style. If you are enjoying having fine dinning experience and luxury goods, we can easily assume that you won't be able to afford that much ( depend on how much you earn). If you are strict with your own financial planning, chances are you have a proper saving plan and more comfortable in attached to a higher amount of loan. As a side note, a simple and great place for you to start your own financial planning would be The Jar System - Simple yet effective.

From the bank perspective, how much you can borrow from them is based on few key factors as mentioned in this guide How Much You Can Borrow based on your DSR .

Factors that determine your maximum loan amount

How much a bank can lend to you depends on 4 key factors:
  1. Your Debt Servicing Ratio (DSR)
  2. An individual’s risk profile
  3. Property valuation
  4. The max Loan-to-Value (LTV) ratio / Margin of Finance available to you (See here)
 I suggest you read through the entire page above to fully understand them. It covers foreigner situation so its apply to you no matter you are Malaysian or Foreigner.

"Its too complex, I want to know how much I can borrow based on my Salary"

Yes, This is possible. There are tools prepare by banks that give you simple form to help you with this. I particularly use load calculator from RHB and CIMB, where the first one based on your income while the later is based on your personal affordability.

It is as simple as key in your current income and debt to calculate the Maximum of loan you might get from them. Do note that you need to know the current bank load % which range from 5-7%. 

CIMB take another approach to let you enter how much you feel comfortable to pay every month which I find it very useful when prepare to get a loan. Based on this, I can know how much I need to save every month and how should I adjust my lifestyle based on it. 

Do aware that these are just general calculation, actual amount from banks might be vary. 

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