How to calculate your maximum home loan amount you can apply?
Effective from 1 Jan 2012 Bank Negara Malaysia had started a new guideline on home loan application whereby previous calculation on Net Income are change to as follow:
| Net Income | Old FormulaNet Income = Gross Income – Other Debt (personal loan, business loan, car loan, credit card and etc) | New FormulaNet Income = Gross Income – Tax – EPF deduction (if any) – SOCSO – Other Debts |
So for example:
Example A:
If Borrower X have a gross income of RM4K/month and do not own any debts and he wish to borrow RM300,00.00 with 4.5% interest with 30 years term. Can he eligible on that?
- Gross Income = RM4,000.00
- EPF 11%= RM440.00
- SOCSO = RM14.75
- Net Income = RM4,000 – RM440 – RM 14.75 = RM3,530.50
- Repayment = RM1,520 (For RM300K loan)
- Dept Income Ratio = 45%
- Maximum Repayment per month = RM3,530.50 x 45% = RM1,588.73
- Maximum Borrower X can be finance = RM313,552.00
So, for above example, Borrower X are eligible to apply RM300k loan.
Example B:
If Borrower Y have a gross income of RM4K/month and have a car loan of RM500 per month and he wish to borrow RM300,00.00 with 4.5% interest with 30 years term. Can he eligible on that?
- Gross Income = RM4,000.00
- EPF 11%= RM440.00
- SOCSO = RM14.75
- Net Income = RM4,000 – RM440 – RM 14.75 – RM500 = RM3,030.50
- Repayment = RM1,520 (For RM300K loan)
- Dept Income Ratio = 45%
- Maximum Repayment per month = RM3,030.50 x 45% = RM1,363.73
- Maximum Borrower X can be finance = RM269,146.00
So, for above example, Borrower Y are not eligible to apply RM300k loan.
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