1. What is Home Loan Eligibility?

The Home Loan Eligibility Calculator estimates the maximum loan amount (principal) you can qualify for based on your affordable monthly payment, interest rate, and loan tenure. It's particularly useful for Malaysian government-backed home loan schemes.

2. How Does the Calculator Work?

The calculator uses the loan eligibility formula:

Where:

• \( P \) — Maximum loan amount (principal)
• \( PMT \) — Affordable monthly payment
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Total number of payments (years × 12)

Explanation: The formula calculates the present value of an annuity (series of equal payments) to determine how much you can borrow.

3. Importance of Loan Eligibility

Details: Knowing your maximum loan eligibility helps in property hunting and financial planning, especially when applying for government schemes with specific price ceilings.

4. Using the Calculator

Tips: Enter your comfortable monthly payment, current interest rate, desired loan tenure, and select the loan scheme. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the My First Home Scheme?
A: A Malaysian government initiative helping first-time homebuyers purchase properties up to MYR 500,000 with 100% financing.

Q2: What interest rate should I use?
A: Use current market rates (typically 3-4% for government schemes) or your bank's offered rate.

Q3: How accurate is this calculator?
A: It provides a good estimate, but actual approval depends on credit score, income, and other bank criteria.

Q4: What's the maximum tenure for government schemes?
A: Typically 30-35 years, depending on age at application and scheme requirements.

Q5: Does this include other costs?
A: No, this calculates principal only. Remember to budget for down payments, legal fees, and insurance.