The Debt Service Ratio (DSR) is the calculation banks use to check if you can afford the loan repayment. It is calculated as:
Banks in Malaysia typically set a maximum DSR threshold between 60% to 70%. If your DSR exceeds this, your loan application will likely be rejected.
Government servants (Penjawat Awam) are eligible for 100% financing via LPPSA (Lembaga Pembiayaan Perumahan Sektor Awam).
Your eligibility is based on the Net Disposable Income (NDI) rule, not the standard DSR used by commercial banks. This typically allows government servants to borrow more.
The NDI is calculated after deducting all statutory deductions (EPF, SOCSO, tax) and existing commitments from your gross salary.
Approximately RM4,000 – RM4,500 net household income, assuming no other major debts and a 35-year tenure at ~4.2% interest rate. If you have existing commitments (car loan, PTPTN), you'll need higher income.
Yes, joint loans are the best way to increase eligibility and lower your DSR. Both applicants' incomes are combined, and both share the debt obligation. This is the most common strategy for first-time buyers.
Yes, PTPTN is counted as a commitment in your CCRIS report. You must be paying it regularly — any arrears will hurt your credit score. The monthly instalment is included in your DSR calculation.
Below 60% is considered healthy by most banks. Some premium banks accept up to 70%, but anything above that will almost certainly be rejected. Aim to keep your DSR as low as possible.
Typically 1–2 weeks for conditional approval from the bank, and another 2–4 weeks for the full loan offer letter. Government loans via LPPSA may take longer depending on documentation.