top of page
Frequently Asked Questions
Find answers to common questions about home loans, refinancing, mortgage eligibility, and buying a property in Malaysia. If you can't find what you're looking for, feel free to contact Megax Mortgage.
Buying Your First Home
Home Loan Eligibility
Home Loan Application
Self-Employed & Variable Income
Home Loan Refinancing
Megax Mortgage Services
Buying Your First Home
Your required salary depends on the property's price, your existing financial commitments, and your Debt Service Ratio (DSR). While income is important, banks also consider your credit history and repayment ability when assessing your home loan application.Learn more: How Much Salary Do You Need to Buy a House in Malaysia?
For a RM500,000 property, most buyers typically need a net monthly income of around RM5,000 to RM7,000, depending on their existing debts and the bank's DSR requirements. The exact amount varies based on your financial profile and loan tenure.Learn more: How Much Salary Do You Need to Buy a RM500,000 House in Malaysia?
Most home buyers in Malaysia need to prepare a 10% down payment for their property's purchase price. Besides the down payment, you should also budget for legal fees, stamp duty, valuation fees, and other related costs.
Yes. Eligible members can withdraw savings from their EPF Account 2 (now officially known as Akaun Sejahtera) to help pay for the down payment, monthly loan instalments, or reduce the outstanding balance of an existing housing loan, subject to EPF's terms and conditions.
Margin of Finance (MOF) refers to the percentage of the property's value that a bank is willing to finance. For example, a 90% MOF means the bank finances 90% of the property's purchase price, while the buyer pays the remaining 10% as the down payment.
Besides the down payment, buyers should prepare for legal fees, stamp duty, valuation fees (for subsale properties), loan agreement costs, and other miscellaneous expenses. These upfront costs can add up to several thousand ringgit depending on the property's value.Learn more: What Costs Should You Prepare Beyond Down Payment?
Both options have their advantages. New projects often come with developer incentives and lower upfront costs, while subsale properties are usually in established neighbourhoods and available for immediate occupancy. The right choice depends on your budget, lifestyle, and long-term goals.Learn more: New Launch vs Subsale Property: Which Is Better?
Home Loan Application
Common documents include:Identification documents (IC / passport)Latest salary slipsEPF statementBank statementsIncome tax documents (if applicable)Additional documents may be required depending on your employment status and the bank's requirements.Our team will guide you on the required document.Learn more: Documents Required for Housing Loan
Most home loan applications in Malaysia are processed within 3 to 7 working days, provided all required documents are submitted. More complex applications, such as those involving self-employed applicants or additional document verification, may take longer.
Learn more: Home Loan Application Process in Malaysia: Step-by-Step Guide
The amount you can borrow depends on several factors, including your income, Debt Service Ratio (DSR), existing financial commitments, credit history, age, and the bank's lending policy. Every bank uses its own assessment criteria, so your loan eligibility may vary.Learn more: How Much Salary Do You Need to Buy a House in Malaysia?
Yes. Many buyers obtain a preliminary loan eligibility assessment before signing the Sale and Purchase Agreement (SPA). This helps you understand your borrowing capacity and reduces the risk of financing issues later in the purchasing process.
Applying to multiple banks within a short period generally does not affect your CCRIS record, as CCRIS mainly reflects your credit facilities and repayment history. However, banks may consider the number of recent loan applications as part of their overall credit assessment, so it is advisable to apply strategically rather than submitting excessive applications.
Home Loan Eligibility
Debt Service Ratio (DSR) is the percentage of your monthly income used to repay your debt commitments, including car loans, personal loans, credit cards, and your proposed housing loan. Banks use DSR to assess whether you can comfortably afford a home loan.Learn more: What is DSR (Debt Service Ratio) and How to Improve It in Malaysia
DSR is generally calculated by dividing your total monthly debt commitments by your monthly income, then multiplying the result by 100. Different banks may use different income calculations and DSR limits, so your loan eligibility can vary from one bank to another.Learn more: What Is DSR (Debt Service Ratio) and How to Improve It in Malaysia
In general, a DSR below 60% is considered favourable for home loan applications. Some banks may accept a higher DSR depending on your income, credit history, and overall financial profile. Each bank has its own lending policy and assessment criteria.
Learn more: What Is DSR (Debt Service Ratio) and How to Improve It in Malaysia
CCRIS (Central Credit Reference Information System) is a credit reporting system managed by Bank Negara Malaysia. It records your credit facilities and repayment history, allowing banks to assess your credit behaviour when reviewing a home loan application.
Learn more: CCRIS & CTOS Explained: How They Impact Your Loan Approval
CTOS is a credit reporting agency that provides banks with information about your credit profile, including legal records, bankruptcy status, and payment behaviour. Banks may review both your CTOS report and CCRIS record when assessing your home loan application.Learn more: CCRIS & CTOS Explained: How They Impact Your Loan Approval
A home loan application may be rejected for various reasons, such as a high DSR, poor credit history, insufficient income, unstable employment, or incomplete documentation. Understanding the reason for rejection can help you improve your chances before reapplying.Learn more: Home Loan Rejection Malaysia: What To Do If Your Home Loan Gets Rejected
Yes. Many home buyers apply to multiple banks to compare interest rates, loan features, and approval criteria. Submitting applications to several banks within a short period is generally acceptable and can help you find the most suitable home loan package.
Self-Employed & Variable Income
Yes. Self-employed individuals can apply for a home loan in Malaysia. Banks will assess your income stability, business performance, and financial documents instead of relying on salary slips. Preparing complete and accurate documents can improve your chances of approval.Learn more: Getting a Housing Loan As a Self-Employed Individual in Malaysia
Most banks require documents such as your business registration, recent bank statements, income tax returns (BE/B or e-Filing), and other supporting financial documents. The exact requirements may vary depending on the bank and your business type.Learn more: Getting a Housing Loan As a Self-Employed Individual in Malaysia
Yes, many banks may consider commission, bonus, or other variable income as part of your home loan application. However, you will usually need to provide supporting documents and demonstrate that the income is consistent over time. Each bank has its own assessment criteria.
Banks evaluate self-employed applicants based on factors such as business income, bank statements, tax records, business stability, and overall financial position. Consistent income and well-maintained financial records generally improve your home loan eligibility.Learn more: Getting a Housing Loan As a Self-Employed Individual in Malaysia
Yes. Freelancers, consultants, and gig workers may still qualify for a home loan if they can demonstrate consistent income and provide sufficient supporting documents, such as bank statements and tax records. Different banks have different requirements, so choosing the right lender is important.Learn more: Getting a Housing Loan As a Self-Employed Individual in Malaysia
Home Loan Refinancing
Home loan refinancing is the process of replacing your existing housing loan with a new loan, either from the same bank or a different bank. Homeowners typically refinance to secure a lower interest rate, reduce monthly instalments, shorten the loan tenure, or access cash from their property's value.
Learn more: When to Refinance Home Loan Malaysia: Does It Make Sense?
You may consider refinancing if interest rates have fallen, your financial situation has improved, or you want to reduce your monthly repayments. Refinancing may also be suitable if you need additional funds or wish to switch to a loan package that better suits your needs.Learn more: When to Refinance Home Loan Malaysia: Does It Make Sense?
Yes. If your property's current market value is higher than your outstanding loan balance, you may be able to refinance and access part of the available equity as cash. This is commonly known as cash-out refinancing, subject to the bank's approval and valuation.Learn more: When to Refinance Home Loan Malaysia: Does It Make Sense?
Refinancing may involve costs such as legal fees, stamp duty on the new loan agreement, valuation fees, and other related charges. Before refinancing, it is important to compare the potential savings with the total refinancing costs to determine whether it is worthwhile.Learn more: When to Refinance Home Loan Malaysia: Does It Make Sense?
Refinancing can be worthwhile if the savings from a lower interest rate or improved loan package outweigh the refinancing costs. The decision depends on factors such as your outstanding loan balance, remaining loan tenure, current interest rate, and financial goals.Learn more: When to Refinance Home Loan Malaysia: Does It Make Sense?
The amount you can save depends on your outstanding loan balance, current interest rate, new loan package, and remaining loan tenure. Even a small reduction in interest rates may result in significant savings over the life of your loan.Learn more: When to Refinance Home Loan Malaysia: Does It Make Sense?
Megax Mortgage Services
No. Our mortgage advisory service is free for clients.
We receive a commission from the bank once a loan is successfully approved, so clients do not need to pay consultation or application fees for our services.
Yes. Legal fees are part of the normal property purchase process.
These fees are paid to the appointed lawyer for preparing the Sale & Purchase Agreement and loan documentation.
We work with multiple banks in Malaysia and will recommend suitable options based on your financial profile and eligibility.
Yes. We assist salaried employees, business owners, freelancers, and commission-based earners with mortgage applications.
Yes. We help compare interest rates, repayment structures, financing features, and loan options across multiple banks.
Yes. We assist clients in reviewing refinancing options that may help reduce monthly instalments or improve overall financing structure.
We can help review your financial profile, identify possible issues, and explore alternative bank options that may better suit your situation.
Yes. We can help coordinate with appointed lawyers and relevant parties throughout the documentation process.
Yes. We can help review your affordability and estimated loan eligibility before you proceed with a property purchase.
bottom of page