Hi, I'm a first time home buyer, and are quite inexperience on property, based on the loan calculators i found online, and with the interest around 3% now for house loan, apparently there's high chance my loan will get approved for property with price around 700k, and most agents are saying the same thing to me too but I still have doubt.


Let say the property price is around 700k after rebate from orignal SPA price, and monthly payment once approved will be around 2660 + 400 maintenace fee per month, and the estimation completion date is 2024/25, below are my commitments so far:


car loan - 700 (finish paying in less than 3 years time)
ptptn - 300
others - 810.58 (insurance, phone)


is this going to be a huge risk if i decide to pursue further? appreciate all opinion here, thanks

Briefly, if your nett income is 5.2k after deducting existing loans, you wont qualify for a 700k loan.

This post has been edited by mini orchard: Nov 29 2021, 11:28 AM

Last time (15 yrs ago) my salary 4K gross, buy a sub 200k house also torturous already. Monthly repayment is RM1050, which is technically more than 25% of nett.

Now, all decent houses are around 500-700k. Salary not much different from my time. Respect you all that can afford houses now.

Your loan repayment + maintenance is ~50% of your nett income..
so in these 3 years, you gonna fork out ~4k for all types of loan.. balance usable income ~2k which haven't include other fix expenses eg. insurance, food, transport, telecomunication etc.
Well, that's a bit tight for me to think.

This post has been edited by augkyos: Nov 29 2021, 07:40 AM

700k say 10% DP you still need to loan 630k, your monthly repayment about 2.5k?

6.2k - 2.5k =3.7k to spend ( not inclusive of if there is monthly maintenance, water, tnb and land tax ya)

no plan to marry etc? suggest you to start small though... buy 2; one for rental ( for selling in 10 20 years time, property no longer goreng-able)

This post has been edited by blindmutedeaf: Nov 29 2021, 07:54 AM

I suggest go for PRIMA or RUMAWIP for first house REGARDLESS your salary if able to apply one ...

I suggest u to do calculation by assuming there will be no increment in ur salary for the next few years.

RM6,200 - 2,660 - 400 - 700 - 300 - 810 = 1,330.

Optimistic people will say RM1,330 sure can pass life as usual...

But... u still need utilities, petrol, food, some daily/monthly expenses that occur once u own a house urself... I don't think with Rm1,330, u can live comfortably...

What is your objective for buying this house? Flip for short term profit? Rental investment? Own stay?

Own stay

Yea, I do consider what you mentioned as what of the worst case scenarios, which was one of the reason on my doubt 😅

Maybe looking for a cheaper house.

Your 1st house should not be your dream house, buy cheaper one and upgrade to a bigger/better house in 5-10 years.

So you should budget some $ for reno and furniture. Other than that, you can check your expenses for past 12 months, if you managed to save at least 3k monthly, then you are probably ok. You should have at least 6-12 months salary worth of cash savings on hand as well for any emergency. Think about fall-back plans in case loss of employment, such as move back to family home and rent out your new house, etc.

Why don’t just try it? Back to 2017 my net 3.3k salary and got 470k loan approved.

Joint borrower ?

Can approve by bank? Sure.

Should you take it? IMO, no, because the loan commitment on your monthly salary is very high, when bundled together with other costs. The risk is quite high unless you have high amount of emergency savings/investments saved elsewhere.

As above mentioned, RM1.3k month is enough to live, but do you really want to live paycheck to paycheck monthly?

Remember that 3% interest rate is due to current low interest rate environment, this will change soon.

nope, 1 name only ... sound crazy right? i didnt expect the loan gets approved.

you should use your capital instead of your income to gauge. Rules of thumb always have half the property in equity to be considered affordable

Sounds risky, and do factor in interest increase in coming years.

Is this an investment or own stay property?
Looking at your DSR, I think this is over-gearing, unless you can rent out the unit for RM2500.

Realistically, I will tell you no.

I had a nett pay of RM6k and i signed for a 500k plus house. Still cannot breathe. Monthly repayment was supposed to be 2.4k/month (reduced to 2.1k now due to lower interest rates). In hindsight I should have asked myself if i would pay this much of rent - to use as a benchmark.

Realistically, how much nett salary would you need to afford a 600k-ish house?

Based on 90% loan ... 550k .... monthly repayment now is about 2.4k .... x 3.

At least 7.2k nett?

Plus / Minus depending if you have other loan commitments ...HP, PL, CC, PTPTN.

The higher the margin, the less financial stress.

Yes very possible. Monthly repayment around RM2.0k. Assuming you have zero other loans, with a net salary of rm3.2k, can definitely get a 2.0k housing loan approved. Banks usually see a DSR of 66.7% of net income. With rm3.2k net salary, you could’ve got a loan of around rm2.2k.