Ya , If the project have DIBS , the price will be higher that no DIBS
The developer won't be that naive to bear all the interest , they will included in the price

I actually strongly disagree on how it has been coined, 'paying for the future price'. When one takes DIBS, the purchase price that he/she is forking out is merely the current price + the interest amount, that's it.

That means, they are not paying anything extra when they purchase the property through DIBS. It will however inflate the price of the property and the sub sale purchaser will be the one bearing the effect. He/she will then be paying the 'previous current price + DIBS amount + appreciated amount'. That person will be paying for DIBS but not getting any it.

You are right for an investor case. Own stay will be as ProperTYcoo mentioned.

bring back income/take home pay/net income means the salary net of mandatory deductions such as epf, socso, pcb etc.

Whereas those after deducting your monthly commitment can be considered as disposable income.

I think the rule of thumb mentioned here is not the banks' guidelines, the banks are looking at total commitment and there is a bank's guideline which allows 80% commitment.

The 30% rule of thumb might come from somebody's opinion on personal finance.

Hope this may helps


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DIBS is a marketing gimmick, it's like you don't have to pay anything until completion to attract buyers especially investors which the interest's already factored into the selling price.


DIBS don't really help people who can't fork out high upfront payment as the interest is to be paid monthly on the loan disbursed which for property under construction, the loan amount is disbursed according to percentage of completion. It's the discount/rebate that matters.

I will say DIBS is beneficial to investor.
Pay 10% (Most cases), sit back and relax with 0 payment, once VP (also means installment start), then sell off the property.
So basically it eases an investor cash flow.

Most DSR are measured with their income.
Below 5k-70%
5.1-8k-80%
8k above-85%

UOB bank lagi aggressive, if u have 1mil cash you could get 200%, HLB 150%. Means I earn RM100 I can loan for RM200, cool?

But I think lower DSR measurement can prevent speculation. Seriously I don't get it when ppl earn 5k and own 2-3 undercon properties but no saving

Wow, interesting info. May I know your source of info? From what I understand, the DSR would heavily depend on additional supporting docs, and not the income. Thus, one can have RM8k nett income but DSR capped at a low level, 60% maybe, because there is no supporting docs such as fixed deposit statement, Amanah Saham...etc

hopefully government will come out with new policy to help first time buyer/ younger!

loan cap = lower and lower ( 60%)
property price = up and up ( average = 300k - 500k)

income 4k x 60% = 2400 - car loan 600 = 1800. mayb can get a low cost apartment with monthly installment 1800.

how to buy even pr1ma house....

I thought pr1ma projects come with special financing agreement..and for 1.8k/mth u can get more than low cost apartment..pls dont exaggerate..😜..unless u plan for 5 yers loan for low cost apartment..

If you are talking about high net worth customers or commercial customers, yes, it does happen.
But come back to common consumer clients, HLB's DSR guideline is at 70%.

I will appreciate if you are willing to share your source that most DSRs are measured with income.

As from my guidelines from few banks, I don't see that.

Yes, you are right. With additional supporting documents then one might get higher DSR.

With RM1,800 monthly installment, 30 years tenure, your loan amount probably around RM360,000 which means the property is RM400,000. You still can get a quite decent property with that budget.

This post has been edited by Fat3Twister: Jul 10 2013, 02:13 AM

area banks going to impose this 60% from nett income policy? I dont see it mentioned officially by bnm. or im missing something?

Just for sharing, recently there was a case I know customer abt 15K p mth, HLB allows for DSR 85%

This post has been edited by ecin: Jul 10 2013, 09:45 AM

Marketing gimmick is true because buyers don't understand how DIBS work.

Its a good scheme and helps defer some of the upfront payments.

Have to fork money for 10% down payment + interest during construction + misc fees. On top of that there is double whammy of monthly house rental while waiting for property to complete

Die standing every month, with DIBS don't suffer so much.

Once the property is complete channel monthly rent into loan repayment. Give buyers some breathing space.

^ thats for genuine house buyers. For speculators/ flippers their thinking is that 'this one can buy no need to think so much - buy now take care of it later'

Yes, it is.

Yeah, it does happen. The 70% DSR is a guideline but there are exceptional cases as there are more factors to be considered.

For credit evaluation purpose, banks will look at 5Cs of the applicants, which are:-

Character - CCRIS, CTOS, to refer your payment records
Capacity - Capacity to repay to loan. DSR falls under here
Capital - Other supporting assets such as fd, shares, unit trusts, properties etc.
Condition - external factors such as market condition, employment, if you work in MNC for a long duration, you get a high score here
Collateral - the property if you are talking about housing loan