1. What is the Housing Loan Payment Formula?

The housing loan payment formula calculates the fixed monthly payment required to repay a loan over its term. This is commonly used for Malaysian housing loans like Maybank Islamic HouzKEY at 2.88% p.a.

2. How Does the Calculator Work?

The calculator uses the loan payment formula:

Where:

• \( P \) — Principal loan amount (MYR)
• \( r \) — Monthly interest rate (annual rate divided by 12)
• \( n \) — Total number of monthly payments
• \( PMT \) — Monthly payment amount (MYR)

Explanation: The formula accounts for both principal repayment and interest charges, with payments remaining constant throughout the loan term.

3. Importance of Loan Calculation

Details: Accurate loan calculation helps borrowers understand their financial commitments, compare different loan products, and plan their budgets effectively.

4. Using the Calculator

Tips: Enter the principal amount in MYR, annual interest rate in percentage, and loan term in years. All values must be valid (principal > 0, interest ≥ 0, term 1-40 years).

5. Frequently Asked Questions (FAQ)

Q1: What is a typical interest rate for Malaysian housing loans?
A: As of 2023, rates typically range from 2.88% to 4.5% p.a. depending on the bank and loan package.

Q2: How does loan term affect monthly payments?
A: Longer terms reduce monthly payments but increase total interest paid. Shorter terms have higher payments but lower total cost.

Q3: What additional costs should I consider?
A: Factor in insurance (MRTA/MLTA), legal fees, stamp duty, and valuation fees which can add 3-5% to total costs.

Q4: What is the maximum loan term in Malaysia?
A: Typically up to 35 years or until age 65-70, whichever comes first.

Q5: How does Islamic financing differ?
A: Islamic products like HouzKEY use profit rates instead of interest, but the payment calculation follows similar principles.