Home loan calculator

The standard way for a reducing-balance loan: each month's interest is charged on what you still owe, and the payment is fixed so the loan reaches zero on the last month. Early payments are mostly interest; later ones are mostly the loan. It assumes the rate never changes.

It is Bank Negara Malaysia's average lending rate for commercial banks in August 2026, 4.5%. That averages all commercial-bank loans, not only home loans, so your quote can be lower or higher. Replace it with the rate your bank gives you.

Two duties. The transfer is charged in bands: 1% on the first RM100,000, 2% from there to RM500,000, 3% to RM1 million and 4% above, on the price or market value, whichever is higher. The loan agreement is RM5 for every RM1,000 borrowed. On a RM600,000 home with a RM540,000 loan that is RM12,000 plus RM2,700, RM14,700 in all.

A Malaysian citizen buying their first home, priced at RM500,000 or less, who has never owned any residential property, including by inheritance or gift. The sale agreement must be signed between 1 January 2021 and 31 December 2027. It removes both the transfer duty and the loan agreement duty. At RM500,001 the exemption is gone and you pay duty on the whole price.

It lowers the monthly payment and raises the total interest. On a RM450,000 loan at 4.5%, 30 years costs RM2,280.08 a month and RM370,829 in interest. 25 years costs RM2,501.25 a month and RM300,375 in interest. 35 years costs RM2,129.66 and RM444,457.

Debt service ratio is your monthly debt payments, including the new loan, divided by your income. We use 60% as a rough guide. It is not a law: each bank sets its own limit, and some use gross income rather than net.

Legal fees, valuation fees, insurance and the down payment come on top, and this calculator does not include them. Only stamp duty is worked out here.