Monthly instalmentRM3,985
- Property price
- RM1mil
- Down payment
- RM100,000
- Loan amount
- RM900,000
- Total interest
- RM773,689
- Total repaid
- RM1.674mil
- Net income needed after commitments
- RM5,693
With RM500 extra a month
- Paid off in
- 27 years 9 months
- Time saved
- 7 years 3 months
- Interest saved
- RM183,990
A rough guide: what you should have left each month after your current commitments, if this loan takes up to 70% of it. Banks set their own limits. Check your DSR
How the monthly instalment is calculated
Monthly instalment = L × r ÷ (1 − (1 + r)^−n)
L is the loan amount, r is the yearly interest rate divided by 12, and n is the number of months.
Example: a RM900,000 housing loan at 4% over 35 years has 420 months, which gives RM3,985 a month.
See the balance year by year
| Year | Interest | Principal | Balance |
|---|
Common questions about home loans
How is the monthly instalment worked out?
Malaysian housing loans and mortgages use a reducing balance. Each month the interest is charged only on what you still owe, and the rest of your payment cuts the loan. The instalment stays level, and early payments are mostly interest. For the same reason, extra payments in the early years save the most.
How much can I borrow for a home in Malaysia?
Malaysians and PRs can usually borrow up to 90% of the price on their first two homes. From the third home the limit is 70%. Foreign buyers usually get 60–80%. The bank also checks your income and your other loans, and that check decides the final amount.
What is progressive interest on an under-construction project?
On a project still being built, the bank pays the developer in stages as the work progresses. You pay interest only on the amount paid out so far, not on the full loan. On a RM900,000 loan at 4%, you pay about RM900 a month when RM270,000 has been paid out. The payment rises with each stage, and the full instalment of RM3,985 over 35 years starts when the whole loan has been paid out, usually around vacant possession. This keeps your early payments low while you wait for your keys.
How long can a home loan run?
Most banks allow up to 35 years or until you reach age 70, whichever comes first. A buyer aged 45 usually gets about 25 years, which raises the monthly payment.
Is the longest tenure the best choice?
It gives the lowest monthly payment but the highest total cost. On a RM700,000 loan at 4%, 35 years costs RM3,099 a month and 25 years costs RM3,695. The shorter loan saves about RM193,300 in interest. Many buyers take the longer tenure for the lower commitment and pay extra when they can.
How much do extra monthly payments save?
More than most buyers expect, because every extra ringgit cuts the balance that interest is charged on. On a RM700,000 loan at 4% over 35 years, an extra RM500 a month ends the loan about 9 years early and saves about RM171,631 in interest. Check your bank’s terms first: many loans charge an early settlement fee during the lock-in period, and a term loan may need you to ask the bank to apply the extra to the principal.
Does my rate stay the same?
Most home loans float with the bank’s base rate, so the rate and your payment can move. Try a rate one point higher in the calculator, and budget for that payment before you commit.
What is the difference between a term loan and a flexi loan?
A term loan has a fixed repayment plan. A flexi loan lets you put extra cash in and take it back out, and the extra cash cuts the interest while it sits there. A flexi loan often has a higher rate or a yearly fee, and it suits buyers who keep spare savings.