What Pheoni said is very true, the 1/3 rule is a general rule but there are other considerations to consider when the banks check your credit profit. Anyway as a guide your monthly salary should min. 3x your monthly repayment.

Other things taken into consideration are your liabilities eg. how many credit cards you owe, any other loans eg car loan. Besides this the property is also taken into consideration. Generally landed properties are favoured more than condos and the location of the property is also important. For example if you choose a property that is in the landslide prone Bukit Antarabangsa, then most likely the loan will be rejected eventhough you may have a good credit profile.

What property are you looking to purchase and where is it?

This post has been edited by DannyOP: Jan 5 2009, 08:49 PM

actually the 1/3 rule is very common for properties and car loans. You have to look at both sides. On the banks, they have to ascertain that whoever they give the loans out to those who is able to pay for it. On the purchaser, anything more than 1/3 will not be practical because most of your earnings will be paid to loans and nothing much left for your living expenses or savings. Remember all your loans and credit are considered as liabilities until you have fully paid for it. The house and the car that you get is owned by the bank, not you, until it is fully settled.

This post has been edited by DannyOP: Jan 5 2009, 10:54 PM

lol I agree I think it may be even worse then credit cards.