How Much Salary Do You Need to Afford a RM500K House in Malaysia?

Buying your first property is a major financial decision. Whether you're planning to buy a condo in the city or a terrace home in the suburbs, understanding the actual cost — and how much income you need — is the first step.

In this guide, we’ll break down what it takes to afford a RM500,000 home in Malaysia. From income requirements to monthly payments and upfront costs, here's what you need to know before making that big commitment.

The Basics: Loan Assumptions for a RM500,000 Property

Let’s assume a typical housing loan scenario:

• Property price: RM500,000
• Down payment (10%): RM50,000
• Loan amount: RM450,000
• Interest rate: 4% per annum
• Loan tenure: 35 years

With this setup, your estimated monthly mortgage payment is about RM1,992, which we will round to RM2,000 for simplicity.

This monthly amount is the starting point. But whether or not a bank approves your loan depends heavily on your Debt Service Ratio (DSR).

What Banks Look For in DSR

DSR stands for Debt Service Ratio. It’s a key formula used by banks to decide if you can afford a housing loan.

DSR = (Total Monthly Debt Payments ÷ Net Monthly Income)

Banks typically prefer your DSR to be within 30% to 40%, although some may allow more flexibility for first-time buyers.

This means that all your debt obligations including the new home loan, car loan, PTPTN, and credit card repayments — should not take up more than 30–40% of your monthly income (after tax and EPF deductions).

How Much Salary Is Needed?

Let’s assume you have no other loans. You’ll need to earn enough so that your RM2,000 monthly home loan repayment stays within a safe DSR limit.

Real-World Scenarios: Single vs. Dual Income

Single Income Buyer

If you’re applying alone, you’ll need to show the bank that your income can comfortably support the RM2,000 monthly repayment.

• At 40% DSR: RM5,000 net income (about RM6,000 gross)
• At 30% DSR: RM6,667 net income (about RM8,000 gross)

If your income is below RM5,000, your application might be rejected unless you apply jointly or put down a larger down payment.

Dual Income Buyer

Applying with a partner significantly improves your chances.

Let’s say two people each earn RM3,500 net (RM7,000 total). The RM2,000 monthly repayment is only about 29% of your joint income — well within safe limits.

Even if both partners earn RM3,000 each (RM6,000 combined), the DSR would be around 33%, which is still manageable.

Upfront and Hidden Costs to Budget For

Many first-time buyers focus only on the down payment, but buying property involves several other upfront costs. Here’s what to expect:

1. Down Payment

• 10% of RM500,000 = RM50,000
  Most banks require this minimum amount in cash before approving a loan.

2. Stamp Duty (on Sale & Loan Agreement)

• Stamp duty on the sale price: RM9,000
  (1% for the first RM100,000, 2% for the next RM400,000)
• Stamp duty on loan: RM2,250 (0.5% of RM450,000)

However: First-time home buyers may qualify for full exemptions under government schemes for properties priced up to RM500,000.

3. Legal Fees

• Legal fees for sale and loan agreements: Around RM6,250 (1.25% of property price)
• Some developers cover legal fees if you're buying from new launches under the Housing Development Act (HDA)

4. Mortgage Insurance and Valuation

• Mortgage Reducing Term Assurance (MRTA) or Takaful: 0.3%–0.4% of loan value annually
• Valuation fee: Around RM500

5. Maintenance and Utilities (If Strata Property)

• Condo maintenance: RM250 – RM500/month for a 1,000 sqft unit
• Assessment tax and quit rent: A few hundred ringgit per year
• Utility bills: Water, electricity, internet, etc.

You should aim to save at least RM60,000 – RM70,000 upfront to cover the down payment and other charges, plus set aside 6 to 12 months of emergency funds.

7 Affordable Houses in Kuala Lumpur Under RM500K

1. Putra Majestik Condo @ Jalan Ipoh

• Price: RM400,000 (Below bank value RM60K)
• Size: 1,020 sqft | 3R2B | Corner Unit
• Freehold, Non-Bumi
• Partly Furnished
• Facilities: 1 car park, NE city view
• Nearby: 700m to MRT Sentul Barat

2. The Birch Service Apartment, Sentul

• Price: RM490,000 (Negotiable)
• Size: 668 sqft | 2R2B | Level 26
• Freehold, Strata ready
• 1 Covered Parking
• Maintenance: RM260/month
• Rental Potential: RM2,000+
• Nearby: 700m to MRT

3. The One Bukit Ceylon (Ramada KLCC)

• Price: RM450,000 (Negotiable, below bank value)
• Size: 411 sqft | Studio
• Fully Furnished
• Freehold
• With Balcony, Level 22
• Nearby: 550m to Monorail Raja Chulan

4. Sri Putramas 1 Condominium, Jalan Kuching

• Price: RM495,000 (Negotiable)
• Size: 1,050 sqft | 3R2B
• Freehold, Strata title
• Renovated, partly furnished
• Facilities: Pool, gym, tennis, parking
• Nearby: Mont Kiara, KTM, malls, schools

5. Vista Sentul Residence

• Price: RM450,000 (Negotiable, MV RM480K)
• Size: 958 sqft | 3R2B | Corner Unit
• Freehold, Non-Bumi
• Fully Equipped (Air-cond, heater), 2 car parks
• Facilities: Full condo amenities including pool, gym, library, etc.
• Nearby: Sentul Park, schools, mosque, HKL

6. Arte Mont Kiara

• Price: RM460,000 (Negotiable)
• Size: 442 sqft | 1R1B + Powder Room
• Freehold, Fully Furnished
• 1 Carpark
• Nearby: Publika, Mont Kiara schools, major highways

7. Changkat View Condominium, Dutamas

• Price: RM480,000
• Size: 1,098 sqft | 3R2B
• Fully Furnished
• 24-Hr Security, 1 covered carpark
• Nearby: Publika, Mont Kiara, highways, intl. schools

To afford a RM500,000 home in Malaysia, you need a net monthly income between RM5,000 and RM7,000, depending on your debt obligations. You’ll also need around RM60,000 upfront for the down payment and other fees. With the right financial planning, a RM500,000 property is achievable for many Malaysians.

Other Article:

• How the SST Expansion in Malaysia Impacts Homebuyers?
• What's the Minimum Salary for a Home Loan in Malaysia?
• Why You Need to Pay Progressive Payment & Interest Before Receiving the Keys in Malaysia?