Use this to calculate your home loan.
Calculate the monthly loan repayment. You have to key in the purchase price, margin of finance (the percentage of loan amount, eg 90% or 80% or 65%) or loan amount, the latest interest rate percentage and loan tenure (number of years, eg 25 years). Once you key in all the information, you will get the monthly repayment amount you need to pay., the total repayment amount and the total interest you have paid. You also can add in MRTA in the loan you apply.
How to calculate your home loan monthly payment instalment?
When you pay your monthly instalments, part of it goes towards paying the principal, while part of it goes towards paying the interest.
With home loans, the amount of interest you pay is different every month. This is because the interest is only calculated on the remaining principal amount. In comparison, you pay the same amount of interest on personal loans and hire purchase (car) loans throughout your entire loan tenure.
What is a downpayment, and how much do I pay?
A downpayment is the initial lump-sum, out-of-pocket payment that is made towards the purchase price of your home. Buyers are typically required to pay a minimum 10% of the property’s purchase price.
Example if your house costs RM500,000, you will be required to pay at least RM50,000 upfront. The remaining 90% can be paid using a house loan.
Property purchase price - Loan Amount = Downpayment
RM500,000 - (90% x RM500,000) = RM50,000
What is the principal of a loan?
The first part of your monthly home loan repayment is the principal. The principal loan amount on your housing loan is the actual amount of money borrowed from the bank. In Malaysia, most banks will lend up to 90% of the property’s purchase price to first-time homeowners (if 10% downpayment is paid).
For instance, you place a 10% downpayment on an RM500,000 house, which is RM50,000. You manage to get a 90% loan amount to cover the remaining cost of the house. In this case, your principal loan amount is RM450,000.
How to calculate interest on a loan?
With home loan repayments, the amount of interest is calculated based on the outstanding principal balance. This means that the amount of interest you pay every month will be different.
At the beginning of your loan tenure, the bulk of your monthly repayments go towards paying down the interest. Towards the end of your loan tenure, the bulk of your monthly repayments go towards paying down the principal.
You can use the Reducing Balance method to calculate exactly how much interest you’ll be paying each month. Here’s the formula, along with an example (assuming your house loan’s outstanding principal on the 1st month is RM450,000, and your interest rate is 3.0% p.a.)
Outstanding Principal x Interest Rate/12 = Interest payable per instalment RM450,000 x 0.0025 = RM1,125
This means that the amount of interest payable for the first month would be RM1,125.
How much housing loan can I get based on my salary?
A good rule of thumb is that banks will loan you up to 30% of your gross income annually.
For instance, let’s say your annual income is RM50,000. 30% of that figure is RM15,000. Hence, banks will likely loan you a maximum of RM525,000 (RM15,000 x 35) for a 35-year loan tenure. For DSP calculator can refer to Shijie Loan checker
DISCLAIMER:
For specific advice on legal, financial or real estate matters, you should always seek the advice of a professional who is licensed and knowledgeable in that area, such as an attorney, accountant,real estate agent or Banker.