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.

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.

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

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