Mortgage calculator

Malaysian home loans use the standard amortisation formula: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the principal, r is the monthly interest rate (annual ÷ 12), and n is the total number of months. Each installment includes both principal and interest. Early years are interest-heavy; later years pay down more principal.

Use the effective annual rate quoted by your bank. Most Malaysian home loans are variable, pegged to BLR or Base Rate (BR) plus a spread (e.g. BR + 0.4%). Typical effective rates in 2026 are around 3.85%–4.50% for residential. Always confirm with the bank.

Most Malaysian banks offer up to 35 years for residential property, capped at age 65–70 at the end of the loan. Longer tenure = lower monthly installment but more total interest. Shorter tenure = higher monthly but you save substantially on interest over the life of the loan.

Most Malaysian home loans have a 3–5 year lock-in. If you fully settle (refinance or sell) within the lock-in, the bank charges 2–3% of the original loan amount as a penalty. After the lock-in, you can refinance freely. Factor this in if you might refinance.

No. Flexi loans (where your current account balance offsets principal daily) have materially different effective interest behaviour and are best modelled by your bank's in-house calculator. This tool models a standard term loan with fixed monthly installments.

Banks size loans on your Debt Service Ratio (DSR) — usually 60–70% of net income — and your credit history. Use the Loan Qualifier tool to estimate your borrowing capacity across Malaysian banks before fixing on a property price.

Outside the lock-in, prepayments directly reduce principal — saving interest for the remainder of the loan. A flexi loan setup is generally the most efficient way to do this. Always confirm prepayment terms with your bank.