Home Loan Calculator
Easily Calculate Your Monthly Repayments in Malaysia
Calculate Your Monthly Home Loan Repayments and Plan Smartly
Looking for an easy way to plan your property purchase in Malaysia? Use our Home Loan Calculator to quickly estimate your monthly mortgage payments. Simply enter your loan amount, interest rate, and tenure, and get your repayment summary instantly!
Why Use a Home Loan Calculator?
- Save time and plan your finances accurately
- Compare different loan amounts and interest rates
- Get a better understanding of your housing loan affordability
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Repayment Summary
Enter your loan amount, interest rate, and tenure to get an accurate estimate of your monthly mortgage payments.
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What is a Home Loan Repayment?
A home loan repayment is the monthly payment made by a borrower to repay a housing loan taken from a financial institution. It includes two main components: the principal amount (the borrowed sum) and the interest (the cost of borrowing). These repayments are usually made over a fixed period known as the loan tenure, which can vary depending on the loan terms.
How to Calculate Home Loan Interest and Principal in Malaysia
When buying a property in Malaysia, understanding how to calculate your home loan interest and principal payment is essential for effective budgeting and financial planning. For most homeowners, these calculations form the foundation of a long-term financial strategy.
With tools like Property Genie's home loan calculator, you can simplify the process and gain clarity on your monthly payments.
Which Banks Offer the Lowest Home Loan Interests in Malaysia?
In Malaysia, the lowest home loan interest rates are now guided by the Standardised Base Rate (SBR), which is directly linked to the Overnight Policy Rate (OPR) determined by Bank Negara Malaysia (BNM).
As of January 2025, the current OPR rate is 3.00%, a benchmark that influences the SBR and, subsequently, the interest rates offered by banks for home loans. Here's how the OPR impacts your loan:
- Floating-Rate Loans: The interest rate for floating-rate loans is calculated based on the SBR, with an additional margin set by the bank. The interest rate fluctuates with changes in the OPR, which directly affects your monthly repayments.
- Fixed-Rate Loans: Although less common, fixed-rate loans offer a stable interest rate throughout the loan tenure, ensuring consistent monthly repayments regardless of OPR changes.
Factors that Affect Home Loan Repayments
Interest Rate:
The interest rate determines the cost of borrowing. A higher interest rate increases your monthly repayment amount. For instance:- A loan with a 3% annual interest rate will have lower repayments than one with a 5% rate.
- Interest rates can be fixed or variable, impacting how repayments are structured.
Loan Tenure (Years):
The loan tenure refers to the period over which you agree to repay the loan.- Shorter Tenure:Higher monthly repayments but less total interest paid.
- Longer Tenure: Lower monthly repayments but higher total interest paid over time.
Principle Loan Amount:
The principle loan amount is the actual sum borrowed. Larger loans result in higher monthly repayments, as they involve more interest and a larger balance to pay off.Down Payment:
In Malaysia, most home loans, including conventional loans, require a minimum down payment of 10% of the property's purchase price. However, certain financing schemes, such as those offered by PR1MA or government housing initiatives, may allow for lower down payment requirements. A higher down payment reduces your monthly installment, and paying at least 20% can help you avoid additional fees, such as Mortgage Reducing Term Assurance (MRTA) or Mortgage Level Term Assurance (MLTA), depending on the lender's requirements.
How to Calculate Late Payment for Home Loan Malaysia?
Late payment charges for home loans in Malaysia are typically calculated as a percentage of the overdue amount, commonly ranging between 1% and 3% per annum, as stipulated in your loan agreement.
The formula to calculate Late payment for home loans
Late Payment Charge = Overdue Amount × Late Payment Rate × (Overdue Days ÷ 365)
Additional charges, such as administrative fees or legal costs, may apply depending on your lender's terms. Always refer to your loan agreement for specific details, and ensure your bank adheres to Bank Negara Malaysia's guidelines on fair and transparent late payment practices.