1. What is the Housing Loan Calculator?

The Housing Loan Calculator estimates monthly payments for home loans in Malaysia using the standard amortization formula. It helps compare different loan scenarios from banks like Maybank Islamic (2.88% p.a.), CIMB, Public Bank, and others.

2. How Does the Calculator Work?

The calculator uses the loan payment formula:

Where:

• \( PMT \) — Monthly payment (MYR)
• \( P \) — Principal loan amount (MYR)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Total number of payments (loan term in years × 12)

Example: For a MYR 500,000 loan at 2.88% p.a. over 30 years:

• Monthly rate = 2.88% ÷ 12 = 0.24% (0.0024)
• Number of payments = 30 × 12 = 360
• Monthly payment = MYR 2,075.17

3. Importance of Loan Calculation

Details: Accurate loan calculations help determine affordability, compare different loan offers, and plan long-term finances when purchasing property in Malaysia.

4. Using the Calculator

Tips:

• Enter principal amount in MYR
• Use current interest rates (e.g., Maybank Islamic 2.88%)
• Standard loan terms are 20-35 years in Malaysia
• Results include total interest paid over the loan term

5. Frequently Asked Questions (FAQ)

Q1: What's the current best housing loan rate in Malaysia?
A: As of 2023, rates start from 2.88% p.a. (Maybank Islamic) to ~3.5% for conventional loans, depending on applicant profile.

Q2: How does reducing loan term affect payments?
A: Shorter terms increase monthly payments but significantly reduce total interest paid.

Q3: What's the maximum loan term in Malaysia?
A: Typically up to 35 years or until age 65-70, whichever comes first.

Q4: Are there other costs besides principal and interest?
A: Yes, include MRTA insurance, legal fees, stamp duty, and valuation fees in your budget.

Q5: How accurate is this calculator?
A: It provides estimates; actual payments may vary slightly due to bank-specific calculations and fee structures.