Malaysia DSR Calculation Guide & Bank Limits
Debt Service Ratio (DSR) measures the percentage of your monthly net income used to pay debts. Malaysian banks use DSR to check if you can afford a new home loan.
DSR (%) = (Existing Monthly Commitments + New Home Loan Installment) ÷ Net Monthly Income × 100
1. How Malaysian Banks Calculate Net Income
Banks deduct statutory contributions from your gross salary before calculating DSR. Standard deductions include EPF (11%), SOCSO, EIS, and LHDN Monthly Tax Deduction (PCB). Fixed allowances count at 100%. Variable commissions, overtime, bonuses, and stamped tenancy rental income typically count at 70% to 80%.
2. How CCRIS Commitments Are Counted
Banks retrieve your loan repayment records from Bank Negara Malaysia CCRIS. Existing mortgages, car loans, personal loans, and PTPTN installments count at 100%. Unpaid credit card statement balances and overdraft usage are estimated at 5% per month.
3. Typical DSR Thresholds by Income Tier
- Net income below RM 3,000: Most banks cap DSR at 60%.
- Net income RM 3,000 to RM 5,000: Standard DSR cap is 65% to 70%.
- Net income RM 5,000 to RM 10,000: Many banks allow 75% to 80% DSR.
- Net income above RM 10,000: Select retail banks allow up to 85% DSR.