Home Loan Calculator Malaysia
A RM500,000 house with 10% down payment (a RM 450,000 loan) at 4.20% over 35 years costs RM 2,046.83 a month, with RM 409,666 total interest. Expect about RM 74,075 upfront for the down payment, stamp duty and legal fees. Enter your own figures below.
Your instalment
Monthly instalment
Loan RM 450,000 over 35 years
| Total interest | RM 409,666 |
|---|---|
| Total repaid | RM 859,666 |
| +0.25% | RM 2,115.74 |
|---|---|
| +0.50% | RM 2,185.73 |
| Down payment | RM 50,000 |
|---|---|
| Stamp duty, transfer (MOT) | RM 9,000 |
| Stamp duty, loan agreement | RM 2,250 |
| Legal fee, sale and purchaseSRO 2023 scale, before discounts | RM 6,250 |
| Legal fee, loan agreement | RM 5,625 |
| SST on legal fees (8%) | RM 950 |
| First-home exemption applied | RM 0 |
| Total upfront | RM 74,075 |
Excludes disbursements, valuation and MRTA/MLTA insurance.
Yearly repayment schedule
| Year | Principal paid | Interest paid | Balance |
|---|---|---|---|
| 1 | RM 5,772 | RM 18,790 | RM 444,228 |
| 2 | RM 6,019 | RM 18,543 | RM 438,208 |
| 3 | RM 6,277 | RM 18,285 | RM 431,931 |
| 4 | RM 6,546 | RM 18,016 | RM 425,385 |
| 5 | RM 6,826 | RM 17,736 | RM 418,559 |
| 6 | RM 7,118 | RM 17,444 | RM 411,441 |
| 7 | RM 7,423 | RM 17,139 | RM 404,017 |
| 8 | RM 7,741 | RM 16,821 | RM 396,276 |
| 9 | RM 8,073 | RM 16,489 | RM 388,204 |
| 10 | RM 8,418 | RM 16,144 | RM 379,786 |
| 11 | RM 8,779 | RM 15,783 | RM 371,007 |
| 12 | RM 9,155 | RM 15,407 | RM 361,852 |
| 13 | RM 9,547 | RM 15,015 | RM 352,306 |
| 14 | RM 9,955 | RM 14,607 | RM 342,350 |
| 15 | RM 10,382 | RM 14,180 | RM 331,969 |
| 16 | RM 10,826 | RM 13,736 | RM 321,143 |
| 17 | RM 11,290 | RM 13,272 | RM 309,853 |
| 18 | RM 11,773 | RM 12,789 | RM 298,080 |
| 19 | RM 12,277 | RM 12,285 | RM 285,803 |
| 20 | RM 12,803 | RM 11,759 | RM 273,000 |
| 21 | RM 13,351 | RM 11,211 | RM 259,649 |
| 22 | RM 13,923 | RM 10,639 | RM 245,727 |
| 23 | RM 14,519 | RM 10,043 | RM 231,208 |
| 24 | RM 15,140 | RM 9,422 | RM 216,067 |
| 25 | RM 15,789 | RM 8,773 | RM 200,278 |
| 26 | RM 16,465 | RM 8,097 | RM 183,814 |
| 27 | RM 17,170 | RM 7,392 | RM 166,644 |
| 28 | RM 17,905 | RM 6,657 | RM 148,739 |
| 29 | RM 18,672 | RM 5,890 | RM 130,067 |
| 30 | RM 19,471 | RM 5,091 | RM 110,596 |
| 31 | RM 20,305 | RM 4,257 | RM 90,291 |
| 32 | RM 21,174 | RM 3,388 | RM 69,117 |
| 33 | RM 22,081 | RM 2,481 | RM 47,036 |
| 34 | RM 23,026 | RM 1,536 | RM 24,010 |
| 35 | RM 24,010 | RM 550 | RM 0 |
Advertisement
How the home loan instalment is calculated
Malaysian housing loans use monthly rest: interest is charged each month on the balance still owed, and every instalment is the same.
Instalment = P × r ÷ (1 − (1 + r)−n), where P is the loan, r the yearly rate ÷ 12 and n the number of months.
- RM450,000 at 4.20% for 35 years: r = 0.0035, n = 420, instalment RM 2,046.83.
- In the first month, RM1,575 of that is interest and only about RM472 reduces the loan.
- Islamic home financing uses the same maths with a profit rate instead of an interest rate.
Monthly instalment table at 4.20%
| Loan amount | 25 years | 30 years | 35 years |
|---|---|---|---|
| RM 200,000 | RM 1,077.88 | RM 978.03 | RM 909.70 |
| RM 300,000 | RM 1,616.83 | RM 1,467.05 | RM 1,364.55 |
| RM 400,000 | RM 2,155.77 | RM 1,956.07 | RM 1,819.40 |
| RM 500,000 | RM 2,694.71 | RM 2,445.09 | RM 2,274.25 |
| RM 600,000 | RM 3,233.65 | RM 2,934.10 | RM 2,729.10 |
| RM 800,000 | RM 4,311.54 | RM 3,912.14 | RM 3,638.80 |
| RM 1,000,000 | RM 5,389.42 | RM 4,890.17 | RM 4,548.50 |
A longer tenure lowers the instalment but adds interest: RM300,000 over 30 instead of 35 years costs about RM103 more a month and saves about RM45,000 in interest.
Home loan interest rates and the OPR
Bank Negara has kept the Overnight Policy Rate at 2.75% since 9 July 2025. Most floating home loans are priced as the bank's Standardised Base Rate (SBR, which follows the OPR) plus a spread, giving effective rates of roughly 4.0% to 4.7%. When the OPR moves by 0.25%, your instalment moves with it, usually from the next billing cycle.
Advertisement
Stamp duty and legal fees
Stamp duty on the instrument of transfer (MOT) is charged on the price: 1% on the first RM100,000, 2% on RM100,001–500,000, 3% on RM500,001–1 million and 4% above that. The loan agreement is stamped at 0.5% of the loan. Under the Solicitors' Remuneration Order 2023, legal fees for the sale and purchase agreement and for the loan agreement are each 1.25% of the first RM500,000 and 1% of the next RM7 million (minimum RM500), plus 8% SST.
| Price (90% loan) | Stamp duty, MOT | Stamp duty, loan | Legal fees | First-home saving now | Budget 2027 proposal |
|---|---|---|---|---|---|
| RM 300,000 | RM 5,000 | RM 1,350 | RM 7,125 | RM 6,350 | RM 6,350 |
| RM 500,000 | RM 9,000 | RM 2,250 | RM 11,875 | RM 11,250 | RM 11,250 |
| RM 700,000 | RM 15,000 | RM 3,150 | RM 15,800 | RM 0 | RM 14,700 |
| RM 1,000,000 | RM 24,000 | RM 4,500 | RM 21,500 | RM 0 | RM 0 |
Developers often absorb legal fees for new projects, and lawyers may discount the scale fee by up to 25%, so treat these as the upper estimate.
First-home stamp duty exemption
- Now: Malaysians buying their first home priced up to RM500,000 pay no stamp duty on the transfer or the loan agreement, for agreements signed by 31 December 2027. That saves up to RM11,250.
- Budget 2027 proposal: for agreements signed from 1 January 2027 to 31 December 2030, homes up to RM750,000 qualify, with full exemption on the first RM500,000 and half on the rest. It becomes law only when the Finance Act is passed.
First-home buyers can also claim tax relief on housing loan interest; see the income tax calculator.
How much housing loan can you get?
Banks look at your debt service ratio (DSR): all monthly repayments, including the new instalment, divided by your net income. Most approve up to 60% to 70%, higher for high earners. They also check your CCRIS and CTOS record, the property's valuation and your age.
- Margin of financing: up to 90% for your first two homes, capped at 70% from the third housing loan.
- Tenure: up to 35 years or age 70, whichever comes first.
- Net income: use take-home pay after EPF, SOCSO and PCB; the salary calculator works it out.
Sources
- Bank Negara Malaysia: Monetary Policy Statement, 3 September 2026
- Malay Mail: first-home stamp duty waivers extended to 2027
- RinggitPlus: Budget 2027 first-home exemption up to RM750,000
- The Edge Property: SRO 2023 legal fees
Disclaimer: These are estimates, not a loan offer or financial advice. Your bank's rate, approval and fees decide the actual figures, and Budget 2027 measures are proposals until passed.
Frequently asked questions
How is the monthly home loan instalment calculated?
Malaysian banks use monthly rest: instalment = loan × r ÷ (1 − (1 + r)^−n), where r is the yearly rate ÷ 12 and n is the number of months. A RM450,000 loan at 4.20% for 35 years costs RM2,046.83 a month.
How much is the monthly instalment for a RM500,000 house?
With a 10% down payment the loan is RM450,000. At 4.20% the instalment is about RM2,046.83 a month over 35 years or RM2,200.58 over 30 years. Over 35 years you pay about RM409,666 in interest.
What are the upfront costs of buying a house in Malaysia?
Budget for the down payment (usually 10%), stamp duty on the transfer (1% to 4% by price band) and on the loan agreement (0.5%), and legal fees for the sale and purchase agreement and the loan (1.25% of the first RM500,000 and 1% after, under SRO 2023) plus 8% SST. On a RM500,000 home with a 90% loan that is about RM74,075 including the down payment.
Do first-time home buyers pay stamp duty?
Malaysians buying their first home priced up to RM500,000 get full stamp duty exemption on the transfer and the loan agreement for sale and purchase agreements signed by 31 December 2027, a saving of up to RM11,250. Budget 2027 proposes extending it to agreements signed from 2027 to 2030 and to homes up to RM750,000, with half relief on the part above RM500,000.
How much housing loan can I get with my salary?
Banks check your debt service ratio (DSR): all monthly loan repayments divided by your net income. Most cap it at 60% to 70%. On RM6,000 net income with no other debts, a 70% DSR allows RM4,200 a month, which supports a loan of about RM923,000 at 4.20% over 35 years.
What is the maximum loan tenure and margin of financing?
Most banks lend for up to 35 years or until you turn 70, whichever is earlier. The usual margin of financing is 90% for your first and second home; Bank Negara caps it at 70% from the third housing loan.
How much more will I pay if the OPR goes up?
The OPR has been 2.75% since 9 July 2025, and floating home loan rates move with it. A 0.25% rise adds about RM68.91 a month on a RM450,000, 35-year loan at 4.20%, or about RM28,900 over the full term.
Is it worth paying extra every month?
Yes, on a flexi or semi-flexi loan extra payments go straight to principal. Paying RM300 more a month on a RM450,000, 35-year loan at 4.20% saves about RM112,702 in interest and ends the loan 8 years 5 months early.
Share this calculator
Advertisement