How much home loan can I get in Malaysia using my salary?
Purchasing a home in Malaysia typically entails obtaining a housing loan from a bank to finance your purchase. However, many people are unaware of how much home loan they can qualify for based on their income. Check out this article to get an idea of how much the banks will lend you for your property purchase.

This article will discuss Malaysia's overall median income, or the typical take-home pay of a rakyat or an average individual. It will also go over the various median incomes in the Southeast Asian country's various states and federal territories, as well as the corresponding loanable amounts. This article will also discuss the debt service ratio (DSR), other costs of homeownership, and the various housing loans available in Malaysia.
Malaysian state median incomes and home loanable amounts
According to the latest government data, 2020 Salaries & Wages Survey Report by the Department of Statistics Malaysia (DOSM), the average Malaysian's monthly income is RM2,062 or RM24,744 per year.
Assuming a home loan term of 35 years, an interest rate of 3%, a monthly debt obligation of RM200, and a maximum percentage of gross income to be spent on mortgage repayment of around 30%. As a result, the average Malaysian (individual borrower) can borrow up to RM160,842 and his monthly loan repayments cannot exceed RM619. This is determined by internal calculations.
Table 1: An individual borrower with a median income
Location | Monthly median income (RM) | Annual median income (RM) | Monthly loan repayment (RM) | Maximum loan (RM) |
---|---|---|---|---|
Malaysia | 2,062 | 24,744 | 619 | 160,842 |
Note:
For individual borrowers
Loan term: 35 years
Max percentage of income to be spent on loan: 30 percent
Interest rate: 3 percent
Monthly debt obligation: RM200
Notably, financial experts advise that your monthly mortgage payment should not exceed one-third of your gross income. This is to ensure that you can comfortably repay your mortgage while still having enough money for necessities and emergencies.
Borrowing as an individual, on the other hand, means having less purchasing power and fewer real estate options. Spouses and joint borrowers who both earn a living, on the other hand, have more purchasing power and can afford a more expensive residential property.
For example, a couple with a median income can borrow up to RM322,684, but their monthly loan payments cannot exceed RM1,238. This is based on the same assumptions as above, except that the existing monthly debt obligation is doubled to RM400.
Table 2: Joint borrowers, each with a median income
Locatioin | Monthly median income (RM) | Annual median income (RM) | Monthly loan repayment (RM) | Maximum loan (RM) |
---|---|---|---|---|
Malaysia | 4,124 | 49,488 | 1,238 | 321,684 |
Note:
For husband and wife, assuming each has a median income
Loan term: 35 years
Max percentage of income to be spent on loan: 30 percent
Interest rate: 3 percent
Monthly debt obligation: RM400
Please keep in mind that the overall country's median income is RM2,062 per month or RM24,744 per year. As a result, some states and federal territories have higher or lower median incomes than Malaysia as a whole.
According to the latest Salaries & Wages Survey Report, the Federal Territory of Putrajaya (RM3,717), Federal Territory of Kuala Lumpur (RM3,037), and the state of Selangor (RM2,725) have the highest median incomes in Malaysia, where an individual median income earner can afford a house costing between RM212,550 and RM289,723.
Kelantan (RM87,567), Kedah (RM101,338), and Terengganu have the lowest median incomes in the country (RM105,496). As a result, an individual with a median income in these states can only afford residential properties costing between RM87,567 and RM105,496. The assumptions are the same as above, with an RM200 monthly debt obligation.
Table 3: Median income in different Malaysian states (individual borrowers)
Location | Monthly median income (RM) | Annual median income (RM) | Monthly loan repayment (RM) | Maximum loan (RM) |
---|---|---|---|---|
W.P. Putrajaya | 3,717 | 44,604 | 1,115 | 289,723 |
W.P. Kuala Lumpur | 3,037 | 36,444 | 911 | 236,715 |
Selangor | 2,725 | 32,700 | 818 | 212,550 |
W.P. Labuan | 2,130 | 25,560 | 639 | 166,039 |
Johor | 2,124 | 25,488 | 637 | 165,519 |
Melaka | 2,120 | 25,440 | 636 | 165,259 |
Pulau Pinang | 2,082 | 24,984 | 625 | 162,401 |
Negeri Sembilan | 2,062 | 24,744 | 619 | 160,842 |
Pahang | 1,753 | 21,036 | 501 | 130,181 |
Sabah | 1,716 | 20,592 | 486 | 126,283 |
Perak | 1,629 | 19,548 | 452 | 117,448 |
Sarawak | 1,593 | 19,116 | 437 | 113,551 |
Perlis | 1,571 | 18,852 | 428 | 111,212 |
Terengganu | 1,514 | 18,168 | 406 | 105,496 |
Kedah | 1,474 | 17,688 | 390 | 101,338 |
Kelantan | 1,343 | 16,116 | 337 | 87,567 |
Note:
For individual borrowers
Loan term: 35 years
Max percentage of income to be spent on loan: 30 percent
Interest rate: 3 percent
Monthly debt obligation: RM200
Even those living in the three states with lower median incomes can purchase a better home priced between RM175,134 and RM210,992 if there are two borrowers, each with a median salary (e.g., husband and wife). Similarly, those living in the wealthier states and Federal Territories can afford a half-million-ringgit residential property.
Table 4: Median income in different Malaysian states (joint borrowers)
Location | Monthly median income (RM) | Annual median income (RM) | Monthly loan repayment (RM) | Maximum loan (RM) |
---|---|---|---|---|
W. P. Putrajaya | 7,434 | 89,208 | 2,230 | 579,446 |
W. P. Kuala Lumpur | 6,074 | 72,888 | 1,822 | 473,430 |
Selangor | 5,450 | 65,400 | 1,636 | 425,100 |
W. P. Labuan | 4,260 | 51,120 | 1,278 | 332,078 |
Johor | 4,248 | 50,976 | 1,274 | 331,038 |
Melaka | 4,240 | 50,880 | 1,272 | 330,518 |
Pulau Pinang | 4,164 | 49,968 | 1,250 | 324,802 |
Negeri Sembilan | 4,124 | 49,488 | 1,238 | 321,684 |
Pahang | 3,506 | 42,072 | 1,002 | 260,362 |
Sabah | 3,432 | 41,184 | 972 | 252,566 |
Perak | 3,258 | 39,096 | 904 | 234,896 |
Sarawak |