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I have seen buyers earning RM8,000, RM10,000, even RM50,000 a month get their housing loan rejected, and most of them are shocked. They thought a good income automatically meant approval. Unfortunately, that is not how banks work.
Your situation is different? Ask me on WhatsApp. I reply myself, usually the same day.
Ask Jason on WhatsAppBanks look at what you owe, not just what you earn
The bank also looks at how much of your income is already committed:
- Car loans
- Personal loans
- Credit card balances
- PTPTN study loans
- Existing housing loans
Banks also check your repayment record through credit reports such as CCRIS and CTOS. That is why two people on the same salary can get completely different outcomes.
What is DSR?
The debt service ratio (DSR) is the share of your monthly income that goes to debt repayments, including the new housing loan. The higher your existing commitments, the less room is left for a mortgage. Each bank sets its own DSR limit and way of counting income, so the same application can get different answers at different banks.
Example: same income, very different loan
| Illustration (net income RM8,000, bank DSR limit 60%) | Buyer A | Buyer B |
|---|---|---|
| Maximum total repayments (60%) | RM4,800 | RM4,800 |
| Existing commitments (car, card, PTPTN, personal loan) | RM500 | RM3,100 |
| Room for a housing loan instalment | RM4,300 | RM1,700 |
| Loan that instalment supports (4.2%, 35 years) | about RM945,000 | about RM374,000 |
Same salary, and Buyer B can borrow less than half as much. This is where the disappointment happens: people find a property they love, only to realise later that financing is the obstacle.
Before you start viewing properties
- Know your affordability. Get a loan pre-assessment before you book anything.
- Know your commitments. List every monthly repayment, including credit card balances you carry.
- Check your credit report for late payments or facilities you forgot about.
- Consider small adjustments. Settling a small personal loan or reducing card balances before applying can make a big difference.
Getting a housing loan isn’t just about how much you earn. It is about how much financial capacity you actually have. Foreign buyer? The rules differ again: see Malaysian home loans for foreigners.
Want to know what you can realistically borrow? Message me before you start viewing, and I will connect you with a banker for a pre-assessment.
General information, not financial advice. Loan approval is at each bank’s discretion. By Jason Lim (REN 84424, IQI Realty Sdn. Bhd.).