How is Debt Service Ratio (DSR) calculated for a home loan in Malaysia?

Malaysian banks divide your total monthly debt commitments by your recognized net monthly income: DSR = (Existing CCRIS Commitments + New Mortgage Installment) ÷ Net Income × 100%. Net income is calculated after statutory EPF (11%), SOCSO, EIS, and PCB tax deductions.

What is the maximum DSR limit and Net Disposable Income (NDI) requirement?

Most Malaysian banks cap DSR between 60% and 70% for net incomes below RM 5,000, while higher earners or joint buyers can qualify for 75% to 85% DSR limits provided they meet the bank’s minimum Net Disposable Income (NDI) buffer (RM 1,100 to RM 1,600/month).

How much upfront cash is needed to buy a house in Malaysia?

Standard sub-sale purchases require a 10% cash downpayment plus SPA legal fees, loan legal fees (SRO 2023 scale), valuation fees, and MOT stamp duty. First-time Malaysian home buyers enjoy 100% stamp duty exemption on homes priced up to RM 500,000.

How do Malaysian banks treat variable income, commissions, and rental income?

Banks recognize 100% of basic salary and fixed allowances. Variable commissions, overtime, bonuses, and stamped tenancy rental income are typically recognized at 70% to 85% averaged over 6 months.

How much house loan can I get with an RM 4,000 or RM 5,000 monthly salary in Malaysia?

With an RM 4,000 gross salary (~RM 3,525 net) and minimal existing debt, you can qualify for a RM 450,000 to RM 525,000 property (or ~RM 390,000 if you have a RM 600 car loan). With an RM 5,000 gross salary (~RM 4,379 net), you can qualify for up to RM 565,000–RM 705,000.

What is the monthly installment for a RM 400k, RM 500k, or RM 600k house in Malaysia?

Assuming a 90% loan over 35 years at 3.85% p.a., the monthly installment is RM 1,561/month for a RM 400,000 house, RM 1,951/month for a RM 500,000 house, and RM 2,341/month for a RM 600,000 house.

How does the BNM 70% Margin of Finance rule work on a 3rd residential property loan?

Under Bank Negara Malaysia guidelines, if an individual borrower already holds 2 active residential housing loans in CCRIS, their 3rd residential mortgage is capped at a 70% Margin of Finance (requiring a 30% downpayment before developer rebates).

What is the difference between SBR, BR, BLR, and OPR in Malaysia?

Since August 2022, all new floating-rate home loans in Malaysia use the Standardized Base Rate (SBR), which equals the BNM Overnight Policy Rate (currently 3.00%). Your effective mortgage rate (~3.80%–3.98% p.a.) is SBR + the bank’s fixed credit spread.

Is MRTA or MLTA compulsory for a Malaysian housing loan?

Mortgage life insurance (MRTA/MRTT or MLTA/MLTT) is not compulsory by law, though most banks require bundling MRTA/MRTT to unlock their lowest promotional interest rate spread and allow financing the MRTA premium up to +5% of the property value.

Can I withdraw EPF Account 2 (Akaun Sejahtera) to pay my house downpayment and legal fees?

Yes. KWSP members can withdraw from Akaun Sejahtera (Account 2) up to the difference between the SPA price and the loan amount plus an additional 10% of the SPA price after signing the SPA and receiving the bank’s Letter of Offer.

Local Commercial & Islamic·Rates Last Updated: October 2026·Official Public Bank Site

Public Bank / Public Islamic Home Loan Calculator & DSR Limit (2026)

Pre-filled with Public Bank / Public Islamic's October 2026 indicative rate (~3.80% p.a. for 5 HOME Plan / ABBA Home-i). Test your monthly mortgage installment, check if your income passes Public Bank's 60%–75% DSR cap, and compare against 22 other Malaysian banks below.

Indicative Rate

~3.80% p.a.

DSR Cap Range

60% – 75%

Variable Income

70% Recognized

Min NDI Floor

RM 1,500/mo

Best Suited For: Borrowers with clean CCRIS records, fixed-salaried employees, and buyers prioritizing the lowest promotional interest rate (~3.80% p.a.) on landed or prime strata homes.

Buying as:

1. Home Loan Installment Calculator

SPA property price, margin of finance, interest rate, tenure & developer rebate

Loan: RM 270,000

SPA Property Price10% Downpayment (RM 30,000)

Quick select price:

Margin (%)

Rate (% p.a.)

Tenure (Yrs)Max 35y

yrs

Developer Rebate / Discount

Offsets downpayment; excess rebate becomes cashback

% off

-RM 0

Developer Waived Legal Fees & Stamp Duty (Free SPA Legal, Loan Legal & Stamp Duty package)

I am a First-Time Home Buyer (100% Free Stamp Duty for homes up to RM 500,000)

Stamp Duty Waived

2. Check Your DSR – Monthly Income

Gross salary, automatic EPF/SOCSO/PCB net pay, variable commissions & rental

Net Take-Home: RM 4,307/mo

Bank:

+RM 5,000/mo

EPF (11%): -RM 550·SOCSO/EIS: -RM 35·PCB Tax: -RM 108

EPF:

3. Existing Monthly Commitments (CCRIS)

Existing housing loans, hire purchase car loans, PTPTN, personal loans & credit cards

Total Existing Debt: RM 0/mo

Existing Housing Loans (Mortgages)0 loans · Standard 90% margin

Mortgages: RM 0/mo

No existing housing loans. Qualifies for standard 90% loan margin.

Other Commitments (Car, Credit Card, PTPTN, Personal Loans)

Other Debts: RM 0/mo

No other commitments added. (Zero car loan, credit card, or personal loan).RM 0/mo

Total Monthly Commitments Counted by BankRM 0/mo

Estimated Loan Eligibility

High Approval Chance

New DSR (Net Pay)

27.0%

Monthly Installment

RM 1,163/mo

Great news! Your total monthly commitments take up 27.0% of your net income, well within the 70% limit used by most Malaysian banks.

Monthly Net Pay UsageRM 1,163 / RM 4,307

Existing: 0%New Home: +27%70% Bank Limit

Take-Home Net Pay

RM 4,307/mo

After EPF, SOCSO & Tax

Cash Left After Loans

RM 3,144/mo

Min buffer RM 1,450

Estimated Upfront CashRM 37,775

Net Downpayment: RM 30,000Legal & Stamp: RM 7,775

Max Property (at 70% DSR)

RM 777,517

Rates last updated: October 2026Source: Bank Negara Malaysia Standardized Base Rate (SBR = 3.00% / OPR 3.00%) & Official Bank Product Disclosure Sheets (PDS)

How rates & DSR caps are verified →

Maybank / Maybank Islamic(MBB)~3.85% p.a.

MaxiHome / MaxiHome-i·Local Commercial & Islamic

Strong margin below 65% DSR cap with RM 3,136/mo net disposable buffer.

Approved

DSR / Cap

27.2% / 65%

Installment

RM 1,171

Max Property

RM 717,082

Maybank DSR Guide →

CIMB Bank / CIMB Islamic(CIMB)~3.90% p.a.

HomeFlexi / HomeFlexi-i·Local Commercial & Islamic

Strong margin below 70% DSR cap with RM 3,128/mo net disposable buffer.

Approved

DSR / Cap

27.4% / 70%

Installment

RM 1,179

Max Property

RM 766,984

CIMB Bank DSR Guide →

Public Bank / Public Islamic(PBB)~3.80% p.a.

5 HOME Plan / ABBA Home-i·Local Commercial & Islamic

Strong margin below 65% DSR cap with RM 3,144/mo net disposable buffer.

Approved

DSR / Cap

27.0% / 65%

Installment

RM 1,163

Max Property

RM 722,014

Public Bank DSR Guide →

RHB Bank / RHB Islamic(RHB)~3.92% p.a.

My1 Full Flexi / Equity Home-i·Local Commercial & Islamic

Strong margin below 75% DSR cap with RM 3,124/mo net disposable buffer.

Approved

DSR / Cap

27.5% / 75%

Installment

RM 1,183

Max Property

RM 819,531

RHB Bank DSR Guide →

Hong Leong Bank / HLISB(HLB)~3.88% p.a.

MortgagePlus / CM Flexi-i·Local Commercial & Islamic

Strong margin below 70% DSR cap with RM 3,131/mo net disposable buffer.

Approved

DSR / Cap

27.3% / 70%

Installment

RM 1,176

Max Property

RM 769,081

Hong Leong Bank DSR Guide →

AmBank / AmBank Islamic(AMB)~3.95% p.a.

HomeLink / HomeLink-i·Local Commercial & Islamic

Strong margin below 70% DSR cap with RM 3,120/mo net disposable buffer.

Approved

DSR / Cap

27.6% / 70%

Installment

RM 1,187

Max Property

RM 761,780

AmBank DSR Guide →

Bank Islam Malaysia(BIMB)~3.85% p.a.

Baiti Home Financing-i·Full Islamic Bank

Strong margin below 70% DSR cap with RM 3,136/mo net disposable buffer.

Approved

DSR / Cap

27.2% / 70%

Installment

RM 1,171

Max Property

RM 772,242

Bank Islam DSR Guide →

Alliance Bank / Alliance Islamic(ABMB)~3.92% p.a.

SaveLink / SaveLink-i·Local Commercial & Islamic

Strong margin below 70% DSR cap with RM 3,124/mo net disposable buffer.

Approved

DSR / Cap

27.5% / 70%

Installment

RM 1,183

Max Property

RM 764,897

Alliance Bank DSR Guide →

Affin Bank / Affin Islamic(AFFIN)~3.95% p.a.

Affin Home Assist / Home Step Fast-i·Local Commercial & Islamic

Strong margin below 75% DSR cap with RM 3,120/mo net disposable buffer.

Approved

DSR / Cap

27.6% / 75%

Installment

RM 1,187

Max Property

RM 816,193

Affin Bank DSR Guide →

Bank Rakyat(BKRM)~3.88% p.a.

Pembiayaan Perumahan-i Manzili·Development & Statutory (DFI)

Strong margin below 70% DSR cap with RM 3,131/mo net disposable buffer.

Approved

DSR / Cap

27.3% / 70%

Installment

RM 1,176

Max Property

RM 769,081

Bank Rakyat DSR Guide →

Bank Muamalat Malaysia(BMMB)~3.92% p.a.

Smart Mortgage Solution-i·Full Islamic Bank

Strong margin below 70% DSR cap with RM 3,124/mo net disposable buffer.

Approved

DSR / Cap

27.5% / 70%

Installment

RM 1,183

Max Property

RM 764,897

Bank Muamalat DSR Guide →

BSN (Bank Simpanan Nasional)(BSN)~3.85% p.a.

BSN MyHome / Youth Housing Scheme·Development & Statutory (DFI)

Strong margin below 70% DSR cap with RM 3,136/mo net disposable buffer.

Approved

DSR / Cap

27.2% / 70%

Installment

RM 1,171

Max Property

RM 772,242

BSN DSR Guide →

MBSB Bank(MBSB)~3.98% p.a.

Stylo Home Financing-i / Ultimate Home-i·Full Islamic Bank

Strong margin below 75% DSR cap with RM 3,115/mo net disposable buffer.

Approved

DSR / Cap

27.7% / 75%

Installment

RM 1,192

Max Property

RM 812,874

MBSB Bank DSR Guide →

OCBC Bank / OCBC Al-Amin(OCBC)~3.85% p.a.

OCBC Home Loan / Manarat Home-i·Foreign Bank Malaysia

Strong margin below 70% DSR cap with RM 3,136/mo net disposable buffer.

Approved

DSR / Cap

27.2% / 70%

Installment

RM 1,171

Max Property

RM 772,242

OCBC Bank DSR Guide →

UOB Malaysia(UOB)~3.86% p.a.

UOB Intelligent Home Loan / Flexi Mortgage·Foreign Bank Malaysia

Strong margin below 70% DSR cap with RM 3,134/mo net disposable buffer.

Approved

DSR / Cap

27.2% / 70%

Installment

RM 1,173

Max Property

RM 771,187

UOB Malaysia DSR Guide →

HSBC Bank / HSBC Amanah Malaysia(HSBC)~3.88% p.a.

HSBC HomeSmart / HomeSmart-i·Foreign Bank Malaysia

Strong margin below 60% DSR cap with RM 3,131/mo net disposable buffer.

Approved

DSR / Cap

27.3% / 60%

Installment

RM 1,176

Max Property

RM 659,212

HSBC Malaysia DSR Guide →

Standard Chartered / Saadiq Malaysia(SCB)~3.88% p.a.

MortgageOne / Saadiq MyHome-i·Foreign Bank Malaysia

Strong margin below 70% DSR cap with RM 3,131/mo net disposable buffer.

Approved

DSR / Cap

27.3% / 70%

Installment

RM 1,176

Max Property

RM 769,081

Standard Chartered DSR Guide →

Agrobank Malaysia(AGRO)~3.90% p.a.

Agrobank Hartani-i / Perumahan-i·Development & Statutory (DFI)

Strong margin below 70% DSR cap with RM 3,128/mo net disposable buffer.

Approved

DSR / Cap

27.4% / 70%

Installment

RM 1,179

Max Property

RM 766,984

Agrobank DSR Guide →

Al Rajhi Bank Malaysia(ARBM)~3.95% p.a.

Al Rajhi Home Financing-i·Full Islamic Bank

Strong margin below 70% DSR cap with RM 3,120/mo net disposable buffer.

Approved

DSR / Cap

27.6% / 70%

Installment

RM 1,187

Max Property

RM 761,780

Al Rajhi Bank DSR Guide →

Kuwait Finance House Malaysia (KFH)(KFH)~3.95% p.a.

KFH Murabahah Home Financing-i·Full Islamic Bank

Strong margin below 70% DSR cap with RM 3,120/mo net disposable buffer.

Approved

DSR / Cap

27.6% / 70%

Installment

RM 1,187

Max Property

RM 761,780

Kuwait Finance House DSR Guide →

Bank of China (Malaysia)(BOCM)~3.82% p.a.

BOC Flexi Housing Loan·Foreign Bank Malaysia

Strong margin below 70% DSR cap with RM 3,140/mo net disposable buffer.

Approved

DSR / Cap

27.1% / 70%

Installment

RM 1,167

Max Property

RM 775,423

Bank of China Malaysia DSR Guide →

ICBC Malaysia(ICBC)~3.85% p.a.

ICBC Residential Housing Loan·Foreign Bank Malaysia

Strong margin below 70% DSR cap with RM 3,136/mo net disposable buffer.

Approved

DSR / Cap

27.2% / 70%

Installment

RM 1,171

Max Property

RM 772,242

ICBC Malaysia DSR Guide →

LPPSA (Public Sector Housing Board)(LPPSA)~4.00% p.a.

Skim Pembiayaan Perumahan Sektor Awam·Development & Statutory (DFI)

Strong margin below 75% DSR cap with RM 3,112/mo net disposable buffer.

Approved

DSR / Cap

27.7% / 75%

Installment

RM 1,195

Max Property

RM 810,673

LPPSA (Civil Servants) DSR Guide →

Public Bank / Public Islamic Underwriting Rules, DSR Tiers & Package Details

How Public Bank Calculates Your DSR & Net Disposable Income

Public Bank consistently offers some of the lowest effective mortgage rates in Malaysia (~3.80% p.a. for loan amounts above RM 300k–RM 500k), paired with conservative credit underwriting. Maximum DSR ranges from 60% (under RM 3,500 net) to 70%–75% for higher earners, alongside a RM 1,500 minimum NDI floor.

Variable Income, Commission & ASB Dividend Policy

Applies a conservative 70% recognition rate on variable commissions and overtime, requires strict 6-month bank statement credit matching, and generally does not offset ASB loan installments with projected dividends.

5 HOME Plan / ABBA Home-i Key Specifications (October 2026)

Reference Rate FormulaSBR (3.00%) + 0.80% Spread = ~3.80% p.a.

Package Structure5 HOME Plan & ABBA Home Financing-i with redrawn prepayments

Lock-In Period3 years (2% on original loan amount if redeemed early)

Minimum Financing AmountRM 150,000

ASB Dividend Offset AllowedStandard Commitment

Public Bank Maximum DSR Limit by Recognized Net Monthly Income

Net Monthly Income Tier (After EPF/SOCSO/PCB)	Max Allowable DSR Cap	Minimum NDI Requirement
RM 0 – RM 3,500/mo	60%	RM 1,500/mo
RM 3,500 – RM 6,000/mo	65%	RM 1,500/mo
RM 6,000 – RM 10,000/mo	70%	RM 1,500/mo
Above RM 10,000/mo	75%	RM 1,500/mo

Public Bank / Public Islamic Home Loan Calculator & DSR Limit (2026)

1. Home Loan Installment Calculator

2. Check Your DSR – Monthly Income

3. Existing Monthly Commitments (CCRIS)

Public Bank / Public Islamic Underwriting Rules, DSR Tiers & Package Details

How Public Bank Calculates Your DSR & Net Disposable Income

Variable Income, Commission & ASB Dividend Policy

5 HOME Plan / ABBA Home-i Key Specifications (October 2026)

Public Bank Maximum DSR Limit by Recognized Net Monthly Income

Compare Public Bank With Other Malaysian Banks