SILING
siling · Malay for ceiling
SBR 2.75% · typical rate 4.30%
Rules current to August 2026
Malaysia · housing affordability

Your budget has two ceilings. The lower one is real.

One ceiling is what a bank will lend you. The other is what your cash and EPF can actually cover on signing day. Most people only ever get told the first one — then get caught by the second.

BANK will lend CASH will cover YOUR HOUSE the gap you save for RM0
Fig. A — binding constraint Not to scale

Work out your number

Twelve fields. Nothing leaves your browser until you ask for the result.

A

Income

gross, before deductions
RM
Basic salary plus fixed allowances.
RM
Leave at 0 if you're applying alone.
years
Caps your tenure — most banks stop the loan at age 70.
Higher earners are usually allowed a higher ratio.
B

What you already owe

everything on your CCRIS
RM/mo
RM/mo
RM
Banks count 5% of your balance as a monthly commitment, not your minimum payment.
RM/mo
C

Cash on the table

what you can put down
RM
Keep an emergency fund out of this figure.
RM
Formerly Account 2. Withdrawable towards a home purchase.
D

The purchase

loan & entry costs
% p.a.
SBR 2.75% plus a typical spread. Good profiles are seeing 4.22%–4.35%.
years
Capped at 35 years or age 70, whichever comes first.
A third housing loan drops your margin of finance to 70%.
Only citizens qualify for the first-home exemption.
Est. take-homeRM—
DSR cap
Margin of finance
Cash potRM—

The rules this uses

No black box. These are the same figures a bank and a conveyancing lawyer will work from, current to August 2026.

Debt service ratio

Banks cap total monthly commitments as a share of net income. Typically 60% under RM3,000, 65% to RM5,000, 70% to RM10,000 and 75% above that. Credit cards count at 5% of the outstanding balance.

Margin of finance

Up to 90% for your first or second housing loan. From the third onwards it drops to 70%, so a third of the price has to come from cash.

Stamp duty on transfer

1% on the first RM100k, 2% to RM500k, 3% to RM1m, 4% above. Foreign buyers pay a flat 8% from January 2026. Permanent residents keep the tiers.

First-home waiver

Malaysian citizens buying their first home at RM500,000 or less pay nothing on the transfer or the loan agreement. Extended to 31 Dec 2027. One ringgit over the cap and the whole waiver goes.

Legal fees

Scale fees: 1.25% on the first RM500k, 1% after, charged separately on the sale agreement and the loan agreement, plus 8% service tax and disbursements.

Interest rate

Almost every Malaysian home loan floats. SBR sits at 2.75% and your rate is SBR plus the bank's spread — around 4.22%–4.35% for a clean credit profile.

Common questions

The short version of the things people usually ask before they trust a number like this.

How much house can I afford in Malaysia?

It comes down to two ceilings, not one: the maximum a bank will lend based on your income and debts, and the maximum your cash and EPF can cover once deposit, stamp duty and legal fees are added. You can only afford whichever one is lower.

What is DSR in Malaysia?

Debt Service Ratio — the share of your net monthly income banks let go toward debt repayments, including a new home loan. It runs from around 60% for lower incomes up to 75% for higher earners, and existing commitments count against the cap first.

Do first-time buyers pay stamp duty?

Malaysian citizens buying their first home at or under RM500,000 get a full exemption on both the transfer and loan agreement stamp duty, extended under Budget 2026 to 31 December 2027. Above that price, standard tiered rates apply.

What is margin of finance?

The share of the property price a bank will actually lend — typically up to 90% for a first or second housing loan, dropping to around 70% from a third loan onward. The rest has to come from your own cash.

Can I use EPF to buy a house?

Yes — EPF Akaun Sejahtera can generally be withdrawn toward a home purchase, and it often moves your affordable price more than another year of saving would, since it goes straight at the upfront cash a buyer needs.

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