Housing Loan

How much house can your salary afford in Malaysia?

Housing Loan Affordability for Malaysian in 2024

When considering purchasing a home in Malaysia, one of the first questions potential buyers often ask is, “How much house can my salary afford?” It’s a crucial query, as it helps set realistic expectations based on one’s financial situation. In this article, we will explore various factors that determine the price of the house you can afford on your income in Malaysia. From understanding loan-to-value ratios and the impact of existing debts to considering different types of home loans and government schemes available, we aim to provide you with a comprehensive guide to aligning your home buying aspirations with your financial reality. Whether you’re a first-time buyer or looking to invest in additional property, knowing what you can afford is the first step to making an informed decision.

Let’s take a look on the salary range and what are the house value that you can afford

In Malaysia, individuals earning various salary levels can afford properties at corresponding prices, and this impacts the loan amounts and monthly installments they might expect. Below is a breakdown of these details:

  • Individuals earning RM3,000 can afford a property priced at RM200,000. The typical loan for such a property would be around RM180,000 (90% of the property price), with a monthly installment of RM830.

  • For those earning RM3,500, the affordable property price increases to RM300,000. The loan amount would then be approximately RM270,000, leading to a monthly installment of RM1,245.

  • Earning RM5,000 allows for purchasing a property valued at RM400,000. The corresponding loan would be RM360,000 with monthly repayments around RM1,660.

  • At a salary of RM6,000, a buyer can look towards a RM500,000 property. This setup leads to a loan of RM450,000 and monthly payments of RM2,075.

  • With RM7,500 in monthly income, a buyer might consider a RM600,000 property, securing a loan of RM540,000, and managing monthly installments of RM2,490.

  • An income of RM8,500 increases the purchasing power to a RM700,000 property, with a loan amount of RM630,000 and a monthly installment of RM2,904.

  • RM9,500 monthly income qualifies for an RM800,000 property, attracting a RM720,000 loan and monthly installments of RM3,319.

  • Individuals earning RM10,500 can afford a home costing RM900,000, which translates to a RM810,000 loan and monthly repayments of RM3,734.

  • Lastly, those earning RM11,500 can aim for a property worth RM1,000,000, with a corresponding loan amount of RM900,000 and monthly installments of RM4,149.

Other Factors to Consider before Buying a House in Malaysia

When buying a house, considering the housing loan is just one part of the process. There are several other factors and expenses that you need to be aware of to ensure you are not over compromised on the expenses that could occurs. Here’s a detailed look at other crucial aspects to consider:

  1. Down Payment:

    • Typically, the down payment is a significant upfront cost and is separate from the loan. It usually ranges from 10% to 20% of the SPA price, depending on the loan arrangement. However, in recent years, many of the developers in Malaysia have claim their property to be at 0% down payment, by marking up the property price. With a higher property price, the 90% loan that first-time house buyers get from bank will be enough to cover even the down payment and that’s how down payment is waive.
      However, in most of the circumstances, if you cannot afford 10% of the down payment, it most probably means that you are at high risk where if anything happens, you do not have emergency fund to support the monthly house loan instalment. Waiving of down payment can encourage many buyers to afford their first home, but at the same time, it may lead to high percentage of loan unpaid issue.

  2. Other Costs:

    • Every buyers should know, buying a house would incurred also other costs, not just the monthly loan instalment. Examples include appraisal fees, attorney fees, registration fees, transfer taxes, and title insurance. Closing costs can range from 2% to 5% of the property’s purchase price. Only consider to buy a house if you are financially ready.

  3. Property Taxes:

    • Depending on the location, property taxes can vary significantly and can have a substantial impact on your monthly housing costs. It’s important to understand how much you will be paying annually.

  4. Home Insurance:

    • Most bank require homeowners insurance, which covers potential damage to your property. The cost can vary based on the property value, location, and coverage amount. For most properties range from RM300-700K, the insurance could cost an extra RM100-RM200 to your monthly instalment. You can opt in to choose either MRTA or MLTA, which will be explain in another article. 

  5. Maintenance and Repair Costs:

    • Owning a home means you are responsible for all maintenance and repairs. It’s wise to budget for unexpected issues, such as roof repairs, plumbing issues, or electrical problems. For condominium, the average maintenance fees monthly is around RM200-RM500, depending on the size of your units. For luxury condos or any condos that have many facilities to maintain, it can cost up to RM1000 to RM1500, just for the maintenance fees. This is not included in your mortgage loan, so your expenses would be Monthly Instalment + Monthly maintenance. Make sure that you check with the property agents or developers what are the maintenance fees rate before buying a house. 

  6. Utilities:

    • Costs for electricity, water, gas, and waste disposal services are not included in your mortgage payment. New homeowners should estimate these monthly costs based on the size of the home and typical usage rates in the area.

  7. Homeowners Association (HOA) Fees:

    • If the property is in a community with an HOA, monthly or annual fees may be required. These fees cover common area maintenance, and possibly amenities such as a community pool, fitness center, or security.

  8. Living Expenses:

    • We cannot simply looking at just your income level and loan affordability when buying a house. As a smart buyer, you should factor in the daily expenses that you incurred to maintaining your quality of life. Always consider how much income left after deducting this portion, and think twice if you really can afford the property. 


In conclusion, buying a home is more than just getting a loan—it’s a big financial commitment that includes many other costs. As potential homeowners, you need to think about all the expenses involved, from the initial down payment and closing fees to ongoing costs like property taxes, insurance, and repairs. It’s also important to consider the location of the home, local schools, and how much the area might grow in value over time. By looking at all these factors carefully, you can make sure the home fits both your needs and your budget. Remember, buying a home is not just about the price you pay today, but also about managing the costs and responsibilities that come with it in the long run.

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