1. What is the House Loan Eligibility Calculator?

This calculator determines how much house loan you may be eligible for in Malaysia based on your affordable monthly payment, interest rate, and loan tenure. It uses the standard loan amortization formula to calculate the maximum principal amount.

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 ÷ 100)
• \( n \) — Total number of payments (years × 12)

Explanation: The formula calculates the present value of an annuity (the loan amount) based on regular payments, interest rate, and duration.

3. Importance of Loan Eligibility Calculation

Details: Knowing your maximum loan eligibility helps in budgeting for property purchases and ensures you don't apply for loans beyond your repayment capacity.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What is the maximum loan tenure in Malaysia?
A: Typically up to 35 years or until age 65-70, whichever comes first, depending on the bank.

Q2: How does interest rate affect loan eligibility?
A: Higher interest rates reduce your maximum loan amount as more of your payment goes toward interest rather than principal.

Q3: What other factors affect actual loan approval?
A: Banks also consider credit score, debt-to-income ratio, employment stability, and property valuation.

Q4: What's the typical interest rate for housing loans in Malaysia?
A: As of 2023, rates typically range from 3.5% to 5% depending on base rate and your credit profile.

Q5: Should I borrow the maximum amount I'm eligible for?
A: Not necessarily. Consider future financial commitments, potential rate increases, and emergency funds before maxing out your loan.