SempoaDuitCash you need upfront
| Item | Amount |
|---|
Excludes disbursements (searches, registration and similar, often RM1,000–3,000), valuation fees and fire insurance. For a detailed breakdown, see the stamp duty & legal fees calculator.
Loan balance by year
| Year | Principal paid | Interest paid | Balance left |
|---|
How the monthly instalment is calculated
This calculator uses the standard amortisation formula that banks use for term loans. In the early years most of each instalment goes to interest; as the balance falls, more goes to paying down the principal. The table above shows this shift year by year.
Ways to pay less interest
- Make extra payments into your loan (or a flexi loan account). Reducing the principal early saves the most interest.
- Choose a shorter tenure if the instalment still fits your budget.
- Compare spreads between banks: a 0.2% difference on a RM400,000 loan adds up to tens of thousands of ringgit over 35 years.
- Consider refinancing after the lock-in period if rates have dropped.
How much should the instalment be?
A common rule of thumb is to keep your housing instalment below about a third of your net monthly income. Banks look at your total debt service ratio across all loans, including car loans and credit cards.
Frequently asked questions
How much can I borrow for a house in Malaysia?
Banks commonly finance up to 90% of the price for your first two residential properties, so you need at least a 10% down payment. How much a bank will actually lend also depends on your debt service ratio (DSR), meaning your total monthly debt repayments compared with your net income.
What is the maximum loan tenure?
Most banks offer up to 35 years, or until you reach around 70 years old, whichever comes first. A longer tenure lowers the monthly instalment but increases the total interest you pay.
Is the interest rate fixed?
Most Malaysian home loans are variable-rate loans priced as the bank's Standardised Base Rate (SBR) plus or minus a spread, so your instalment can change when rates move. Use the rate from your bank's offer letter for the most accurate result.
What upfront costs should I prepare?
Besides the down payment, you pay stamp duty on the Memorandum of Transfer and on the loan agreement, legal fees for the sale and purchase agreement and the loan agreement (plus 8% service tax), and disbursements. First-time buyers of homes up to RM500,000 are exempt from both stamp duties until 31 December 2027.
Sources
- RinggitPlus – Budget 2026: stamp duty exemptions extended
- Malaysian Bar – Solicitors' Remuneration Order 2023 scale
- Bank Negara Malaysia – official site
Figures last checked September 2026.