Hi, may i asked?
how much is my salary in order to afford 300k house and 550k house with 15yrs term loan?


3k salary for 300k house? 10k salary for 550k house?

can anyone teach me how to calculate? thanks

For 300k loan with 15 yrs tenure, every month repayment around 2k++
Bank will calculate 33.33% of your nett salary for the monthy repayment.
If can meet, then only the loan approve.

how much do you intend to pay the down payment?

standard rare loh ..10% ^^

my question is---> to owned a 300k and 550k house.. what is the min monthly salary i need to have in order to survive if my monthly expenses is around 2k(+ other car loan+ GF expenses)?

http://www.money3.com.my/ to determine your monthly installment

General guideline: housing loan + car loan + misc loan <= 40% of your salary..

No comment on GF expenses.. some need to pay a fortune to buy LV for them, some even GF pay for the guy (untung lo)

---

Added on May 16, 2009, 12:16 amif only taking 15yrs loan,
3k salary for 300k house? <- No way
10k salary for 550k house? <- should be ok

This post has been edited by eugene jk: May 16 2009, 12:16 AM

uh, yes then u need 3k-4k alary to support your instalment, unless your gf is willing to pay together until both of u get married. becoz 10% down payment for a 300k - 550k house is too low. i'm not sure how much are u willing to pay every month but u might end up taking loan for 30 years..... if you're 30 years old now... you'll be 60 by the time you finish your instalment, don't forget you might need money or epf to pay for your children's education & retirement. so please plan properly.

thanks a lot..

just wanna asked... how much salary do i need to pay RM300k house for 15yrs loan with 10% down payment.
if my monthly expenses is about 2k.

wah! RM300k house with 15yrs loan only!! only 10% down payment somemore.....!!

my friend bought RM80k house with 30yrs loan & her pay is below 2k so u can imagine how high your salary should be...

i think u need 5k salary.... below is a link from maybank Loan Calculator:
http://www.maybank2u.com.my/homeLoan.html
u can calculate from there

This post has been edited by ah liew: May 17 2009, 01:17 PM

thx liew liew

hope to repay asap ma..don't wanna pay so much interest

hi, assuming 300k with 10% downpayment,

Loan amount = 270k
Tenure = 15 years
Interest = 5% (i just assume a bit higher in case you wanna take a fixed rate loan)

monthly repayment is = rm 2,135

so according to normal practice by bankers (30% rule), you would need a salary of 6k and above. also, you must work out if you have any other loan liabilities such as car, education loan etc. Then you would need a higher income for repayment capability (at least in the eyes of the bank la)

I hope the answer is helpful.

Here's the exact link. I found it very useful (also made me realize I need to make more money )

Money3 Affordability Calculator

If I can't meet the 33.33 % but I have a guarantor, so how? Am I qualified to apply for housing loan?

wah! this one better then the maybank calculator

lcl832002,

If you cannot meet the 33% rule, that means you CANNOT AFFORD the house. So, how does dragging a guarantor into this mess helps you??

If you buy something that you cannot afford, that mean you are most likely to lose it. Why do that??

Dreamer

33 % is just a standard used by certain banks. Some banks use other standards like 40 %, 50 %, 70 % and so on.

I can't meet 33 % but I can meet 50 %, let say. So, do you think I can't afford the house?

but u have other current commitment yet such as car loan or personal loan?
for banker they will do calculation from our salary together with personal monthly expenses, monthly loans, etc...
from there they will justify you are afford to own a house or not...

I don't have car and personal loan except for PTPTN loan. I am not planning to buy a car in near future...

if save more the better...if not can get loan if guarentee by dato or multi milionaire...which i did....

lcl832002,

<<I can't meet 33 % but I can meet 50 %, let say. So, do you think I can't afford the house?>>

Let's be very precise here. The 33% is applied to gross pay. And, the 33% is from extensive study and common sense that you will be most likely to be bankrupted when you went above that threshold.

This rule was repealed in USA. Right after that, bankruptcies went up.

Let's take 50%. Your tax and EPF will take another 20 to 25%. That means you live on 20% to 25%. Hence, you have NO SAVINGS. Now, if you have NO SAVINGS, you have NO EMERGENCY FUND. That means if you have any kind of financial emergency, you will be wiped out.

Why are you buying something that you cannot afford and just to lose it later??

The 33% rule include all loans. That means PTPTN loan too.

Dreamer

P.S.: Please note that bank is NOT your friend. They could make MORE MONEY if you cannot pay the loan and they take your house away. And, loan officer make money from selling you the loan. Look at mess that USA is in now.

This post has been edited by dreamer101: Jun 9 2009, 04:28 AM

You are right, but not totally. Whether I have savings or not, you will never know. Only I myself, banks and Lembaga Hasil Dalam Negeri will know...

lcl832002,

So, why it does it matters whether you have saving NOW?? If you take a loan at 50%, your savings will not grow. You hope is your earning will grew and reduce that into 33% in the future. But, that may or may not be true. Or, you may hit a streak of bad luck and your pay will be reduced.

Dreamer

You are right, but not completely. My saving will still grow as I don't have other commitments like car, children and others. If my earning grows, my saving will grow faster... I always think of the worst scenario and make sure that it will not affect me too much before I buy something I want...

lcl832002,

So, you are saying that you can

A) Spend 50% of your gross pay in house payment

B) Pay 10% to 20% on EPF and taxes.

C) Live on 10% to 20% of your gross pay

D) Save 10% to 15%

If that is true, you should be saving 50+% now before buying a house. So, are you saving that much now??

Dreamer

Generally speaking, if you working for a company, each year you'll get salary increment, so altho now get 3K and things rather tight, 5 years later it'll generally be much better. For bachelor, saving 50%+ of 3K is not a hard thing to do.

Altho risky to get an expensive house when your salary is low, but if got rich guarantor it's worthit, coz renting means money down the drain and buying cheap house means living in problematic areas, and your property value may not go up much.

Assume you only pay installment for the house with 10% downpayment

you will need a montly salary of
7.5k for 300k house and 14k for 550k house.


In details:
300k house after 10% downpayment
--> PV= -270k loan
--> n = 15 years
--> i/y = assume 5.5% per year
--> PMT = RM 26,899 / year
-----> Montly installment = 26,899 / 12 = RM 2, 242
For a healthy financail situation, your debt should be 30% of your montly income
which mean your recommended salary = RM 2, 242/0.3 = RM 7, 473.

same theory for the other 1....

If I don't buy books I like, I can save more than 50 % sometimes. I have a very good saving habit.

What you say is right. I think it is very cheap to buy a house now as interest rate is very low. Of course, when I say it is cheap, it means that I can afford it.

As I said, if you got a rich guarantor who can bail you out when you get into trouble, then go for it. If you don't have, if I was in your place, I won't buy yet. Save for several years, build up a healthy savings buffer and then get the house. Because if you buy when you have a tight budget, and something goes wrong, you'll loose everything.

Too concervative IMO........the "n" could be extended and the "i" now is a lot lower than 5.5%...............

cic.lemur,

1) We are on the threshold of a BIG BAD LONG global recession. So, is it WISE to assume that we are in a normal time??

<< For bachelor, saving 50%+ of 3K is not a hard thing to do.>>

2) My point is if the person is saving 50+% now aka before buying the house, he/she might be able to do it. But, if he/she is not saving 50+% now, how REALISTIC that it can be done after he/she buying a house?? There are a lot more EXTRA expenses to maintain a house.

Dreamer

the "n" is the requester request 1... i just base on his criteria to come out with an suggestion....
and the BLR-2 is about we can get now, depends on different banks' offering....

being conservative or not it's all depending on different individual risk profile right...? haha...
just my 2 cents...

This post has been edited by simple.ology: Jun 12 2009, 03:16 PM

just do wat u can afford~~!!

..

This post has been edited by finest_solution: Jun 17 2009, 09:20 AM

Dear sifus,

May I know if I am affordable to get loan for a 430-450k property? Basic earning : Rm4217.5 Age:25 Commitment : Rm26k Car loan /mnthly Rm580.

Please advise.

Thanks

Commitment too high IMHO, most likely you cant qualify..
unless you are willing to put 30 - 50% downpayment..

Rule of thumb, total monthly installment should be 40% or less of your salary.
thus rough estimation, you might only qualify for loan which installment is around RM1100 per month

Does it helps if I have a backup property of worth 50% of the new property I m getting? Or you guys suggest to do early settle my car loan? I asked the banker if earlier settle only discount Rm3k.. seems not worth. Might as well put more into the new property d/p.

Actually for the loan will be into my name and mum. But my sis and a friend will be staying together. So they will be paying me some rentals.
Does it helps on the approval?

is your backup property rented out?
if yes you could use the tenant agreement as prove to the bank that its an additional income for their consideration.
if not, you could create a tenancy agreement and rent it to say your sister at a full priced market rate (of course you dont collect anything from her) and get it stamped and then every month bank in this amount into your savings account (with your own money) as prove that you receive rent. the banks normally accept it... the bad side of this is that you may have to declare it as additional tax, but there are ways to reduce this tax thingy...