I agree with daruma. Many people staying in KL paying RM800 rental only (less if you rent out a room). Not everyone has a house/car before they have kids. Pls consider carefully on your decision.

Perhaps you can consider "lowering" your monthly costs?

House (Monthly loan payments) - RM 2,000
>> I believe at the end of the day, you have to make a decision which is more important. The new house or the baby<<

Car Loan - RM 500
>> This will be necessary for working, but only if there are no other realistic alternatives<<

House Rental - RM 1,000
>> Nice condo for RM800 rental are available, but must be hardworking in looking for it, i believe<<

Food and Utilities - RM 500
>> Understandable for KL ppl<<

Other loans - RM 200 (Minimum Payment)
>> Understandable<<

Support for Family - RM 500
>> Understandable. Maybe can rediscuss with family? Considering the unborn baby?<<

Traveling expenses - RM 800 (Petrol, toll, parking)
>> As per car loan, only if there are no other realistic alternatives<<