You can no need to follow.
But once you have a family and parents to take care of, you will know the pain

True but I'm just wondering what the actual percentage is like for Malaysians nowadays. I get the impression that it's a lot higher than 30%

For me its 36%..

85% in average

Seems alright to me.

Not sure if this is even possible for loan approvals. But if true then there's very little buffer for unplanned expenses.

at times there is NO buffer or "negative buffer" yet the bank approves it...
a friend of mine
income RM 8000 pm
minus EPF, PCB tax, Socso
net about RM 6000 pm
recently bank loan approves RM 4000 per month loan installment.... ....
to add some thought....he is a bread winner with a wife and 2 kids....
just wondering what is the loan approval criteria?

Already came out from newspapers, we are the highest in Asia currently

I didn't know it was even possible to get that high a margin, unless the wife is also working.
Otherwise it doesn't make much sense. 2000 net to support a family of four will be a challenge.

But that's the household debt in reference to GDP, we're talking about a slightly different statistic here.

the wife is co owner of new condo...did not submit name to take loan. the husband is the sole borrower.
my 1st reaction was...WOW...the bank really want you to die-lah...

Yup, is total, but housing loan average about 50-60%. So, it is still freaking high.

It is possible if you don't buy an expensive house or take a big loan.

Also possible if you've fully paid your car loan or bought a cheap car or ride a motor.


A 250k loan can come up to RM1.2k in monthly payments for a 30 year loan. (Apartment)

A 500k loan can up tp RM2.5k/month. (Landed house)

A 9 year car loan of 80k, can be up to RM925/month. (Vios)

A 9 year car loan of 30k can be as low as RM350/month (Perodua Axia)

Also depending how much initial cash you have for down-payments.


Even if you earn RM10k/month but still take crazy amounts of debt to finance a big house and a big car, you still won't be able to hit the 30% target for loan repayments.

So in essence, if a person wants to control his expenses, he must control his debt.

This post has been edited by Skidd Chung: Mar 30 2015, 06:42 AM

Medical cards become more expensive when you're older, overweight , smoking etc. So maybe it's a good idea to get it early when you're still young and fit. If ever you have a medical emergency you can use your company's card first

will the premium paid for the medical card that you got it "cheaper" during your younger days continue to rise when you are older?

I think the bank consider EPF account 2 as income also, because you can withdraw it monthly to pay your housing loan...

Possible....but from the maths above...he is left with RM 2000 pm to fed a family and etc....
if "can" take EPF a/c 2 to pay......I think it can just last 2~3 years only (4000x12x3=144 000)

as pointed out by another forummer...

i like to point out is... it is NOT 'cheaper' even if you buy your medical card earlier... if you buy yours at age 30 and i bought mine when i was 20... when we are both at age 50 (barring any price hike) respectively 20 years and 30 years later... the premium is STILL the same

the only difference is
a) health condition on approval of medical condition. the older you get, the higher chance of having a health condition
b) loading on original premium as a result of health condition

sh.. don't break ppl's rice bowl

the BS must continue for lousy agents to make $ neh - buy younger = cheaper... (unless U factor in total paid in life time +cost of $ AKA inflation AKA $1 when 20 = $10 when 40 kinda thing)
don't enlighten the masses lar

If not mistaken, bank will approve your housing loan if our total monthly commitment is less than 70% of your total income.

This post has been edited by enriquelee: Apr 1 2015, 10:09 AM

DELETE

This post has been edited by T231H: Apr 1 2015, 10:22 AM

cannot la wong sifu. like chinese saying you know, if we see any injustice on the road, one must draw out his knife to help

but yes, like you say, inflation whatever not or even premium increase by insurers, etc... but yes... i don't want to break rice bowl... just... hand itchy must type.