A good rule of thumb is that banks will loan you up to 30% of your gross income annually.
For instance, let’s say your annual income is RM50,000. 30% of that figure is RM15,000. Hence,
banks will likely loan you a maximum of RM525,000 (RM15,000 x 35) for a 35-year loan tenure.
However, your income isn’t the only factor that impacts the amount of housing loan you’re eligible
for. Another important factor to consider is your
Debt Service Ratio (DSR),
which measures a person’s debt against their household income.
Read more on how much home loan you can get based on your salary here.