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Loan Payment Formula:
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The property loan payment formula calculates the fixed monthly payment required to repay a loan over a specified term. This is the standard formula used by Malaysian banks like CIMB, Maybank, and others for property loan calculations.
The calculator uses the standard loan payment formula:
Where:
Explanation: The formula accounts for both principal repayment and interest charges, calculating a fixed payment that remains the same throughout the loan term.
Details: Understanding your monthly payment helps with financial planning, budgeting, and comparing different loan offers from banks. It's essential for property buyers to know their repayment obligations before committing to a loan.
Tips: Enter the principal amount in MYR, annual interest rate as a percentage (e.g., 3.5 for 3.5%), and loan term in years. The calculator will compute your estimated monthly payment.
Q1: What's included in the monthly payment?
A: The calculated payment includes both principal and interest. Additional costs like insurance or maintenance fees are not included.
Q2: How does interest rate affect payments?
A: Higher interest rates increase monthly payments significantly. A 0.5% rate difference can substantially impact your monthly obligation over long loan terms.
Q3: What are typical loan terms in Malaysia?
A: Most property loans in Malaysia have terms between 20-35 years, with some banks offering up to 40 years for younger borrowers.
Q4: Are there other costs not shown here?
A: Yes, there may be processing fees, legal fees, valuation fees, and MRTA/MLTA insurance that aren't reflected in this calculation.
Q5: Can I reduce my total interest paid?
A: Making additional principal payments or choosing a shorter loan term can significantly reduce total interest costs.