how do i calculate how much am i eligable for a house loan from bank? if buying car, i was told that the easiest calculation is one third of salary = monthly instalment. for house, how? if already got car loan?

call up any of the banks, they will provide u all the necessary info...

It depends on your monthly expenditure and the loan amount you're taking. More details needed

eg :

Basic Salary -- RM2100
Allowance -- 3 months -- RM200 , RM300 , RM250 -- Average = RM250

TOTAL -- RM2350

Minus Car Payment .. RM400 , Credit Card .. Min RM250..

Balance : RM1700

Then they will divide into half.. which means. ur monthly payment should be RM850 and below : )

Don't worry this is very common scenario, u got a car, then u want a house. When u want to buy a house u will have doubt about your capacity to get the approval of a loan. Just ask any bank home loan staffs to do the calculation for you. If one bank don't approve your loan doesn't mean the other bank will do the same, you might approval from other bank. Remember to drag your loan tenure to the max to reduce the montly committment figure, becos its better you have a longer time to settle the loan than getting a short tenure loan and "chock" you financially.

This post has been edited by Tohsan: Dec 29 2009, 09:58 AM

Hi, just want to "tumpang" this topic. Is it worth to settle the car settlement by maximize the loan amount? I mean let say, if house price is at RM160k & car remaining settlement is at RM40k, is it possible to loan up to RM200k then settle the car so that can focus to pay the mortgage only?
Thanks for advice.

there is no point finishing up the car loan earlier because u will still be paying the same total interest for X years that you agreed with the bank. pay early and pay later you still pay the same at the end.

while for house the interest is calculated differently, the earlier u pay off the less interest you pay.

do corrrect me if i am wrong

i don think it work tat way for home loan, u can stretch the home loan but u can't use it to cover car loan.

Nowdays bank calculate 50% of ur gross salary instead of 1/3 or 40%.
Provided u dont have any other comitments lah.

This post has been edited by izdyharz: Mar 30 2010, 02:45 PM

at least if you settle your car, you able to get cash back of certain amount..settlement amount vs loan amount..

i have same dilemma last time also..make sure you get the lowest interest rate from the bank..im using BLR-2%