Home Loan DSR Calculator: Calculate Your Maximum Housing Loan Eligibility

Estimate your Debt Service Ratio (DSR) and maximum housing loan eligibility instantly based on your income and monthly commitments.

Max Home Loan Calculator

Your financial details

Update the yellow fields to see an instant estimate.

DSR rules & mortgage formula

Income-band DSR is 60% when nett income is below RM3,000, 75% from RM3,000 through RM7,000 inclusive, and 85% above RM7,000. When the overall DSR cap is enabled, the lower percentage is used. Nett installment eligible equals Total Income × applicable DSR minus Total Commitments, never below RM0. Maximum loan uses the standard reducing-balance mortgage formula based on monthly interest rate and total monthly payments.

What Is DSR and Why Does It Matter?

Debt Service Ratio (DSR) is the primary formula banks use to evaluate your eligibility for a home loan. It compares your total monthly debt commitments against your net monthly income to ensure you can comfortably afford your mortgage payments without financial distress.

DSR (%) =

Total Monthly Commitments Net Monthly Income

× 100

A lower DSR indicates lower risk to lenders, significantly increasing your chances of loan approval and favorable interest rates.

Net Monthly Income Tier	Typical Maximum Allowable DSR Limit
Below RM 3,000	Up to 60%
RM 3,000 – RM 7,000	Up to 75%
Above RM 7,000	Up to 85%

Note: Thresholds vary by individual bank guidelines, credit scoring, and applicant risk profiles.

How to Calculate Your Home Loan Eligibility

1. Determine Your Net Income

Include basic monthly salary after taxes, EPF, and SOCSO deductions.
Combine co-applicant incomes if applying jointly.
Include secondary revenue streams (such as rental or commission income), which banks typically recognize at a standard 80% valuation rate.

2. Sum Your Existing Monthly Debt Commitments

Car loans and personal loans
Existing housing loans or mortgages
Minimum monthly credit card payments (typically 5% of outstanding balance)
Study loans (e.g., PTPTN)

3. Factor in Housing Loan Parameters

Interest Rate: Input prevailing market interest rates (e.g., 3.5%–4.5%).
Loan Tenure: Select your preferred repayment period (up to 30 or 35 years).

Tips to Improve Your DSR Before Applying

Pay Off High-Interest Commitments: Clear outstanding personal loans or credit card balances to instantly lower your monthly debt commitments.
Consolidate Debt: Combine multiple smaller debts into a single lower-interest facility to reduce your monthly obligations.
Apply with a Joint Applicant: Combine net household incomes with a spouse or family member to raise your overall income threshold.
Declare Additional Income: Provide documented proof of recurring secondary income, dividends, or rental receipts.

Frequently Asked Questions!

DSR calculations vary across different banks depending on how they treat income and commitments. Speak with our property experts for a personalized eligibility check before submitting your loan application.

What is a healthy DSR for home loan approval?: Most financial institutions prefer a DSR below 70%. Maintaining a DSR below 60% offers the highest probability of securing quick approvals and competitive interest rates.
How do banks calculate rental income for DSR?: Banks usually accept valid tenancy agreements and bank statements as proof, recognizing around 80% of the gross rental income toward your total monthly net income calculation.
Does a bad credit score affect my DSR?: DSR measures your capacity to pay based on income and existing debt, whereas credit reports (such as CCRIS or CTOS) measure your repayment habit. Both factors are evaluated together during loan underwriting.

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August 25, 2026 Tuesday!

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