Malaysia Home Loan Calculator
Work out your monthly instalment, total interest and yearly repayment breakdown in seconds.
Yearly breakdown
| Year | Principal | Interest | Balance |
|---|
How this calculator works
The calculator uses the standard reducing-balance formula that Malaysian banks use for housing loans. Your loan amount is the property price minus your down payment. The interest rate is divided by 12 to get a monthly rate, and the monthly instalment is calculated so that the loan is fully paid off by the end of the tenure.
In the early years, most of each payment goes towards interest. As the balance falls, more of each payment goes to the principal. The yearly breakdown above shows exactly how this shifts over time. Paying extra towards the principal early on can reduce your total interest by a large amount.
This is an estimate only. Your actual instalment depends on the bank's approved rate, whether your loan is conventional or Islamic, and whether the rate is floating (linked to the bank's base rate) or fixed.
Costs to remember besides the instalment
Buying a home in Malaysia also involves legal fees, stamp duty on the sale and purchase agreement and the loan agreement, valuation fees, and possibly MRTA or MLTA insurance. Many buyers also set aside money for renovation and moving costs. Check these with your lawyer and bank before you commit.
Frequently asked questions
How much can I borrow for a home loan in Malaysia?
Banks mainly look at your debt service ratio, which compares your monthly commitments with your income. As a rough guide, many banks like total commitments to stay below about 60–70% of net income, but each bank has its own limits.
What is a typical down payment?
Banks commonly finance up to 90% of the property price for a first home, so the usual down payment is 10%. Some cases allow higher financing and others need more, depending on the property and your profile.
Is the interest rate fixed or floating?
Most Malaysian home loans are floating, so the rate can move when the bank's base rate changes. Your instalment may stay the same while the tenure changes, or the instalment itself may change, depending on your bank's arrangement.
Does this calculator work for Islamic financing?
It gives a good estimate for Islamic home financing as well, if you enter the effective profit rate. Your bank's offer letter will have the exact figures.
How can I reduce the total interest?
Choose a shorter tenure if you can afford the higher instalment, make extra principal payments when possible, and compare offers from several banks before signing.