If you are looking for a home affordability calculator in Malaysia, you might not need one anymore. Given the latest data and our calculation, we have come up with a table that might be the answer for you to figure out how much salary you would need to buy a house in Malaysia.

Take note that this is based on the assumption that you do not have any commitments such as credit card debts, personal loans and other types of credit facilities which can affect your debt-service ratio.

If you look at the table carefully, you will find that monthly installments for each category should not exceed 30% of your total income. This is set to ensure you have enough disposable income for your other financial needs such as savings, investment, car loans, and retirement.

Based on the current market rate of 4.2% to 4.4% p.a. interest for a standard mortgage loan, you will need to fork out at least RM1,760 per month over the next 30 years for a 90% loan to buy a RM400,000 house.

Not forgetting down payment for your house, here is a list of total down payment you will need to save up based on various property prices:

Other than the sale purchase agreement, loan agreement and stamp duty costs listed above, you will also need to prepare extra money for these items:

• Mortgage Reducing Term Insurance – RM1,000 or more
• Renovation costs – minimum RM20,000

This means you will need to prepare around 20% of the property price you are aiming to buy.

Here are three ways to fund your down payment:

• A Low-Interest Rate Personal Loan

If you have a clean credit record, you have the capability and leverage to negotiate with the banks for a personal loan at a lower interest rate than the normal rate. Find the best personal loan to support your property dream!

• 0% Easy Payment Plan (Credit Cards)

If you have the limit to spare or you want to fill the gap with the cash you have on hand, you can call the bank for a zero interest instalment plan by using your credit card. Find out more about Easy Payment Plan!

• EPF Account 2 Withdrawal

You can choose to withdraw from your Employee Provident Funds (EPF) Account 2 if:

• You are buying a residential house
• Your financing option has been approved by the bank
• SPA has been signed but did not exceed three years
• You never made a withdrawal for house purchase before

Before making a decision, make sure you are aware of your capability to commit and have a financial buffer or backup plan in case of emergencies. Find out more tips about personal finance at CompareHero.my!

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