Frequently Asked Questions

DSR (Debt Service Ratio) is the percentage of your gross monthly income that goes toward all your debt payments. Banks typically cap it at 60-70% for mortgages—so if you earn RM5,000 monthly, your total debt payments (car loan, credit cards, mortgage) shouldn’t exceed RM3,000-RM3,500. If you’re already paying RM1,500 in car loans and credit cards, you’d have around RM1,500-RM2,000 left for a mortgage payment.

When BNM raises the overnight policy rate, banks typically increase their lending rates within weeks—especially for floating-rate mortgages. A 0.5% rate increase on a RM400,000 mortgage adds roughly RM170-RM200 to your monthly payment. If you’re getting a floating rate, budget for potential increases; fixed-rate mortgages lock in your rate for a set period (usually 1-3 years), protecting you from these changes.

Stamp duty typically costs 1-4% of the purchase price (depending on property value and state). Legal fees run RM1,000-RM3,000. You’ll also need property valuation (RM300-RM600), insurance, and surveys. For a RM400,000 property, expect around RM8,000-RM20,000 in additional costs beyond your down payment. Always factor these into your total financing plan.

Yes—most states offer stamp duty exemptions or reductions for first-time buyers on properties under certain values (often RM500,000-RM1 million). Some states also waive legal fees or offer property gains tax exemptions. Eligibility varies by state and property type, so you’ll need to check with your state’s land office or a solicitor to confirm what applies to your situation.

Banks typically require 10-20% down payment, but you can buy with as little as 5-10% if you’re a first-time buyer or the property’s below RM500,000. Going below 20% means you’ll pay mortgage insurance (around 1-4% of the loan amount), which gets added to your mortgage. It’s not ideal, but it’s a real option if saving for 20% will take years.

You’ll need 3-6 months of recent payslips, last 2 years of tax returns, bank statements, and your CCRIS credit report. Self-employed applicants should provide audited accounts and business registration docs. Banks also pull your credit score and employment history. Having everything organized upfront speeds up approval by 2-3 weeks.