Calculation Methodology: How We Compute DSR, EPF, SOCSO, PCB & Bank Rates
This page documents the exact mathematical formulas, statutory deduction schedules, and primary data sources used by HomeLoanCalculator.my to estimate your mortgage affordability and bank approval odds across 23 Malaysian financial institutions.
1. Statutory Net Monthly Income (KWSP EPF, PERKESO SOCSO/EIS & LHDN PCB)
Under Bank Negara Malaysia's Policy Document on Responsible Financing, Malaysian banks must calculate Debt Service Ratio (DSR) using Net Income after statutory deductions:
- KWSP / EPF Employee Contribution (11%): Applied to contractual basic salary, fixed allowances, commissions, and bonuses in accordance with the KWSP Third Schedule (users can toggle to 9% or 0% for self-employed / non-EPF earners).
- PERKESO SOCSO & EIS: Calculated using the Employees' Social Security Act 1969 (Act 4) and Employment Insurance System Act 2017 (Act 800) wage brackets up to the RM 6,000/month insured wage ceiling (maximum employee deduction of RM 29.75 for SOCSO + RM 11.90 for EIS = RM 41.65/month).
- LHDN Monthly Tax Deduction (Potongan Cukai Bulanan / PCB 2026): Computed by annualizing taxable employment income, deducting individual relief (RM 9,000) and EPF/life relief (up to RM 7,000), applying LHDN's progressive resident income tax bands (0% to 30%), subtracting the RM 400 tax rebate for chargeable income ≤ RM 35,000, and dividing by 12 months.
2. Variable Income Haircuts & CCRIS Debt Commitments
While basic salary and fixed allowances are recognized at 100%, variable income (commissions, overtime, bonuses, and stamped tenancy rental agreements) is multiplied by each bank's specific recognition percentage (ranging from 70% at Public Bank to 80%–85% at Maybank, CIMB, and RHB). On the commitment side:
3. Source of Bank Interest Rates (~3.80% to 4.00% p.a.) & DSR Caps (Checked October 2026)
The indicative interest/profit rates shown in our calculator (such as ~3.85% p.a.) are derived from each bank's published Standardized Base Rate (SBR = 3.00%) plus the promotional credit spread stated in their official retail housing loan Product Disclosure Sheets (PDS) for residential properties valued at RM 300,000 and above with a 90% margin of finance. Rates and DSR tiers were last verified in October 2026:
| Bank & Dedicated Calculator | Flagship Package | SBR Rate Formula | DSR Cap Range | Min NDI | Official Source |
|---|---|---|---|---|---|
| Maybank / Maybank Islamic | MaxiHome / MaxiHome-i | SBR (3.00%) + 0.85% Spread = ~3.85% p.a. | 40% – 80% | RM 1,400 | Official Site |
| CIMB Bank / CIMB Islamic | HomeFlexi / HomeFlexi-i | SBR (3.00%) + 0.90% Spread = ~3.90% p.a. | 60% – 85% | RM 1,300 | Official Site |
| Public Bank / Public Islamic | 5 HOME Plan / ABBA Home-i | SBR (3.00%) + 0.80% Spread = ~3.80% p.a. | 60% – 75% | RM 1,500 | Official Site |
| RHB Bank / RHB Islamic | My1 Full Flexi / Equity Home-i | SBR (3.00%) + 0.92% Spread = ~3.92% p.a. | 60% – 90% | RM 1,250 | Official Site |
| Hong Leong Bank / HLISB | MortgagePlus / CM Flexi-i | SBR (3.00%) + 0.88% Spread = ~3.88% p.a. | 60% – 80% | RM 1,400 | Official Site |
| AmBank / AmBank Islamic | HomeLink / HomeLink-i | SBR (3.00%) + 0.95% Spread = ~3.95% p.a. | 60% – 85% | RM 1,200 | Official Site |
| Bank Islam Malaysia | Baiti Home Financing-i | SBR (3.00%) + 0.85% Spread = ~3.85% p.a. | 60% – 80% | RM 1,300 | Official Site |
| Alliance Bank / Alliance Islamic | SaveLink / SaveLink-i | SBR (3.00%) + 0.92% Spread = ~3.92% p.a. | 60% – 85% | RM 1,300 | Official Site |
| Affin Bank / Affin Islamic | Affin Home Assist / Home Step Fast-i | SBR (3.00%) + 0.95% Spread = ~3.95% p.a. | 60% – 85% | RM 1,250 | Official Site |
| Bank Rakyat | Pembiayaan Perumahan-i Manzili | SBR (3.00%) + 0.88% Spread = ~3.88% p.a. | 60% – 80% | RM 1,200 | Official Site |
| Bank Muamalat Malaysia | Smart Mortgage Solution-i | SBR (3.00%) + 0.92% Spread = ~3.92% p.a. | 60% – 80% | RM 1,200 | Official Site |
| BSN (Bank Simpanan Nasional) | BSN MyHome / Youth Housing Scheme | SBR (3.00%) + 0.85% Spread = ~3.85% p.a. | 65% – 80% | RM 1,100 | Official Site |
| MBSB Bank | Stylo Home Financing-i / Ultimate Home-i | SBR (3.00%) + 0.98% Spread = ~3.98% p.a. | 65% – 85% | RM 1,200 | Official Site |
| OCBC Bank / OCBC Al-Amin | OCBC Home Loan / Manarat Home-i | SBR (3.00%) + 0.85% Spread = ~3.85% p.a. | 60% – 80% | RM 1,500 | Official Site |
| UOB Malaysia | UOB Intelligent Home Loan / Flexi Mortgage | SBR (3.00%) + 0.86% Spread = ~3.86% p.a. | 60% – 85% | RM 1,500 | Official Site |
| HSBC Bank / HSBC Amanah Malaysia | HSBC HomeSmart / HomeSmart-i | SBR (3.00%) + 0.88% Spread = ~3.88% p.a. | 60% – 80% | RM 1,600 | Official Site |
| Standard Chartered / Saadiq Malaysia | MortgageOne / Saadiq MyHome-i | SBR (3.00%) + 0.88% Spread = ~3.88% p.a. | 60% – 80% | RM 1,550 | Official Site |
| Agrobank Malaysia | Agrobank Hartani-i / Perumahan-i | SBR (3.00%) + 0.90% Spread = ~3.90% p.a. | 60% – 75% | RM 1,100 | Official Site |
| Al Rajhi Bank Malaysia | Al Rajhi Home Financing-i | SBR (3.00%) + 0.95% Spread = ~3.95% p.a. | 60% – 80% | RM 1,350 | Official Site |
| Kuwait Finance House Malaysia (KFH) | KFH Murabahah Home Financing-i | SBR (3.00%) + 0.95% Spread = ~3.95% p.a. | 60% – 80% | RM 1,400 | Official Site |
| Bank of China (Malaysia) | BOC Flexi Housing Loan | SBR (3.00%) + 0.82% Spread = ~3.82% p.a. | 60% – 80% | RM 1,450 | Official Site |
| ICBC Malaysia | ICBC Residential Housing Loan | SBR (3.00%) + 0.85% Spread = ~3.85% p.a. | 60% – 80% | RM 1,450 | Official Site |
| LPPSA (Public Sector Housing Board) | Skim Pembiayaan Perumahan Sektor Awam | Statutory Fixed Rate = 4.00% p.a. (Invariant to BNM OPR changes) | 60% – 80% | RM 1,000 | Official Site |