The question "how much salary do I need to buy a house in Malaysia" has a misleading premise. Banks do not approve home loans based on salary. They approve based on DSR — Debt Service Ratio. Two people earning RM10,000/month can qualify for vastly different loan amounts if one has a car loan and credit card debt while the other has zero commitments. The right question is: given my salary and existing debts, what is the maximum property price I can afford?
This guide provides the tables. We calculate maximum property prices by gross salary level, show how existing debts reduce your capacity, demonstrate the power of joint income, and work backwards from popular price points to tell you the minimum salary needed.
The Formula Banks Use
Banks calculate affordability through DSR:
DSR = (All Monthly Debt Payments Including Proposed Loan) / Net Monthly Income x 100%
Most Malaysian banks cap DSR at 60% for borrowers with net income below RM10,000/month, in line with BNM's responsible financing guidelines. For higher earners, some banks allow up to 70%. We use 60% as the baseline since it covers the majority of applicants.
Key assumptions for all tables in this guide:
- Loan margin: 90% (first or second property)
- Tenure: 35 years (maximum)
- Interest rate: 4.75% (BR + spread, market average in 2026)
- DSR limit: 60%
- Net income: Gross income minus EPF (11%) and SOCSO/EIS (~1%) = approximately 88% of gross
- No existing debt commitments (unless specified)
Maximum Property Price by Gross Monthly Salary
This is the table most people are looking for. It shows the maximum property price you can qualify for at each salary level, assuming zero existing debts.
| Gross Monthly Salary | Net Monthly Income (est.) | Max Monthly Instalment (60% DSR) | Max Loan Amount (35yr, 4.75%) | Max Property Price (90% margin) |
|---|---|---|---|---|
| RM3,000 | RM2,640 | RM1,584 | RM213,000 | ~RM237,000 |
| RM4,000 | RM3,520 | RM2,112 | RM284,000 | ~RM316,000 |
| RM5,000 | RM4,400 | RM2,640 | RM355,000 | ~RM394,000 |
| RM6,000 | RM5,280 | RM3,168 | RM426,000 | ~RM473,000 |
| RM7,000 | RM6,160 | RM3,696 | RM497,000 | ~RM552,000 |
| RM8,000 | RM7,040 | RM4,224 | RM568,000 | ~RM631,000 |
| RM9,000 | RM7,920 | RM4,752 | RM639,000 | ~RM710,000 |
| RM10,000 | RM8,800 | RM5,280 | RM710,000 | ~RM789,000 |
| RM12,000 | RM10,560 | RM6,336 | RM852,000 | ~RM947,000 |
| RM15,000 | RM13,200 | RM7,920 | RM1,065,000 | ~RM1,183,000 |
| RM20,000 | RM17,600 | RM10,560 | RM1,420,000 | ~RM1,578,000 |
How to read this table: If your gross salary is RM8,000/month with no other debts, the maximum property you can buy is approximately RM631,000. The bank would lend you about RM568,000 (90% of property price), and your monthly instalment would be approximately RM4,224.
Key takeaway: A RM8,000 gross salary gets you about a RM630K property — if and only if you have zero other debt commitments. Every ringgit of existing debt directly reduces this number.
Important caveats:
- These are theoretical maximums. Banks may approve less based on credit history, employment stability, property type, and internal risk appetite.
- The 35-year maximum tenure applies only if you are 30-35 years old or younger (most banks require loan to be fully repaid by age 65-70, whichever the bank uses as their internal ceiling). A 40-year-old gets a maximum 25-30 year tenure, which reduces the max property price.
- Some banks use a stress-test rate (current rate + 1-2%) when calculating DSR for internal assessment. This would reduce the numbers above.
How Existing Debts Destroy Your Capacity
Here is where the real world collides with the theoretical table. Most Malaysians carry some combination of car loans, personal loans, credit card balances, and PTPTN.
Impact of a car loan on maximum property price (RM8,000 gross salary):
| Car Loan Monthly Payment | Remaining DSR Capacity | Max Loan Amount | Max Property Price | Reduction from Zero-Debt |
|---|---|---|---|---|
| RM0 (no car loan) | RM4,224 | RM568,000 | RM631,000 | — |
| RM500 | RM3,724 | RM501,000 | RM557,000 | -RM74,000 |
| RM800 | RM3,424 | RM460,000 | RM512,000 | -RM119,000 |
| RM1,000 | RM3,224 | RM434,000 | RM482,000 | -RM149,000 |
| RM1,300 | RM2,924 | RM393,000 | RM437,000 | -RM194,000 |
| RM1,500 | RM2,724 | RM366,000 | RM407,000 | -RM224,000 |
| RM2,000 | RM2,224 | RM299,000 | RM332,000 | -RM299,000 |
A RM1,000/month car payment (typical for a RM80,000-RM90,000 vehicle over 7 years) reduces your maximum property price by RM149,000. That is the difference between a decent condo in Cheras and a studio in the outskirts.
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Impact of credit cards:
Banks do not care if you pay your credit card in full every month. They calculate 5% of your total credit card limit as a monthly debt commitment.
| Total Credit Card Limit | Deemed Monthly Debt (5% of limit) | Impact on Max Property Price (RM8K salary) |
|---|---|---|
| RM5,000 | RM250 | -RM37,000 |
| RM10,000 | RM500 | -RM74,000 |
| RM20,000 | RM1,000 | -RM149,000 |
| RM30,000 | RM1,500 | -RM224,000 |
| RM50,000 | RM2,500 | -RM373,000 |
Combined impact example:
A borrower earning RM8,000/month with:
- Car loan: RM1,000/month
- Credit card limit: RM20,000 (deemed RM1,000/month)
- PTPTN: RM300/month
Total existing commitments: RM2,300/month Remaining DSR capacity: RM4,224 - RM2,300 = RM1,924/month Maximum loan: ~RM259,000 Maximum property price: ~RM288,000
That same RM8,000 salary goes from RM631,000 (zero debt) to RM288,000 (with typical debts). A 54% reduction in buying power.
How Tenure and Age Affect Maximum Price
The 35-year tenure in the tables above is the maximum. Most banks require full repayment by age 65 (some allow up to 70). Your maximum tenure is:
Maximum tenure = 65 - Your current age (capped at 35 years)
| Current Age | Max Tenure | Max Property Price (RM8K salary, zero debt) | Reduction from Age 30 |
|---|---|---|---|
| 25 | 35 years | RM631,000 | — |
| 30 | 35 years | RM631,000 | — |
| 35 | 30 years | RM574,000 | -RM57,000 |
| 40 | 25 years | RM510,000 | -RM121,000 |
| 45 | 20 years | RM436,000 | -RM195,000 |
| 50 | 15 years | RM349,000 | -RM282,000 |
A 45-year-old buying their first property faces a RM195,000 disadvantage compared to a 30-year-old with the same salary. Time is a critical factor in property affordability.
Joint Income: Doubling Your Capacity
A joint loan application combines both borrowers' income for DSR calculation. This is the single most effective way to qualify for a higher loan amount.
| Applicant 1 Salary | Applicant 2 Salary | Combined Net Income | Max Property Price (zero debt) |
|---|---|---|---|
| RM4,000 | RM0 (solo) | RM3,520 | RM316,000 |
| RM4,000 | RM3,000 | RM6,160 | RM552,000 |
| RM4,000 | RM4,000 | RM7,040 | RM631,000 |
| RM6,000 | RM0 (solo) | RM5,280 | RM473,000 |
| RM6,000 | RM4,000 | RM8,800 | RM789,000 |
| RM6,000 | RM6,000 | RM10,560 | RM947,000 |
| RM8,000 | RM0 (solo) | RM7,040 | RM631,000 |
| RM8,000 | RM5,000 | RM11,440 | RM1,026,000 |
| RM8,000 | RM6,000 | RM12,320 | RM1,105,000 |
| RM8,000 | RM8,000 | RM14,080 | RM1,262,000 |
A dual-income couple earning RM8,000 + RM6,000 can qualify for a property worth RM1.1 million — nearly double what the RM8,000 earner could get alone.
Important notes on joint loans:
- Both borrowers' existing debts are counted in the combined DSR
- Both borrowers appear on CCRIS for this loan
- Most banks require co-borrowers to be spouse, parent, or sibling
- Some banks only give 90% margin for spousal joint applications; parent/sibling joint applications may be capped at 85%
For a detailed guide on joint loans, read the joint home loan Malaysia guide.
Salary Needed for Popular Price Points
Working backwards from common property price points:
| Property Price | Loan Amount (90%) | Monthly Instalment (35yr, 4.75%) | Min Net Income (60% DSR) | Min Gross Salary (est.) | Min Gross Salary (with RM800 car loan) |
|---|---|---|---|---|---|
| RM200,000 | RM180,000 | RM1,341 | RM2,235 | ~RM2,540 | ~RM3,449 |
| RM300,000 | RM270,000 | RM2,011 | RM3,352 | ~RM3,809 | ~RM4,718 |
| RM400,000 | RM360,000 | RM2,682 | RM4,470 | ~RM5,080 | ~RM5,989 |
| RM500,000 | RM450,000 | RM3,352 | RM5,587 | ~RM6,349 | ~RM7,258 |
| RM600,000 | RM540,000 | RM4,023 | RM6,705 | ~RM7,619 | ~RM8,528 |
| RM700,000 | RM630,000 | RM4,693 | RM7,822 | ~RM8,889 | ~RM9,798 |
| RM800,000 | RM720,000 | RM5,363 | RM8,938 | ~RM10,157 | ~RM11,066 |
| RM1,000,000 | RM900,000 | RM6,704 | RM11,173 | ~RM12,697 | ~RM13,606 |
To buy a RM500,000 property in Malaysia, you need a minimum gross salary of approximately RM6,350/month with zero debts — or approximately RM7,260/month if you have an RM800 car loan. That is the threshold for a mid-range condo in the Klang Valley.
The Salary-to-Price Ratio in Practice
Malaysian property affordability is often discussed in terms of the salary-to-price ratio. Here is the reality:
Practical affordability ratio = Max Property Price / Annual Gross Income
| Gross Monthly Salary | Annual Gross | Max Property Price (zero debt) | Ratio |
|---|---|---|---|
| RM4,000 | RM48,000 | RM316,000 | 6.6x |
| RM6,000 | RM72,000 | RM473,000 | 6.6x |
| RM8,000 | RM96,000 | RM631,000 | 6.6x |
| RM10,000 | RM120,000 | RM789,000 | 6.6x |
| RM15,000 | RM180,000 | RM1,183,000 | 6.6x |
The ratio holds steady at approximately 6.6x annual gross income across salary levels (under our standard assumptions). This is a useful rule of thumb: you can afford a property priced at roughly 6.5 to 7 times your annual gross salary, assuming no other debts, 90% margin, and 35-year tenure at 4.75%.
But add a car loan and the ratio drops to 4.5-5.5x. Add credit card limits and PTPTN and you might be looking at 3.5-4.5x. The clean 6.6x is the ceiling, not the floor.
How to Increase Your Maximum Property Price
If the tables above show a lower maximum than the property you want, here are the levers you can pull:
1. Reduce existing debt.
- Settle personal loans or PTPTN before applying
- Cancel unused credit cards or request limit reduction (reducing deemed credit card debt)
- Settle the car loan if close to completion
2. Increase income.
- Overtime, commissions, and bonuses count if consistent (banks typically average 3-6 months)
- Rental income from existing property (some banks count 80% of rental income)
- Side income may count if declared in tax returns
3. Apply jointly.
- Spousal income is the most straightforward boost
- Parent as co-borrower works but may shorten tenure (parent's age limits maximum tenure)
4. Increase downpayment.
- If you can put down 20% instead of 10%, you borrow less and your monthly instalment falls — improving your DSR
- EPF Account 2 (Akaun Sejahtera) can be used for property downpayment (the EPF withdrawal guide covers this)
5. Choose a cheaper property.
- Sometimes the answer is not to stretch your DSR to the limit. A property that consumes 45% of your DSR instead of 60% leaves buffer for future commitments and financial flexibility.
Key takeaway: Your salary sets the theoretical ceiling. Your debts set the actual ceiling. The gap between the two is often RM100,000 to RM300,000. Clean up your debt profile before applying for a home loan.
What Banks Actually Look At Beyond DSR
Meeting the DSR threshold does not guarantee approval. Banks also assess:
Credit history (CCRIS/CTOS):
- Any missed payments in the last 12 months significantly hurt your application
- Bankruptcy or legal action is an automatic rejection
- Even a single "1" in your CCRIS conduct column (one month late) can cause some banks to decline
Employment stability:
- Most banks require a minimum of 6 months at current employer (some accept 3 months if you have been in the same industry)
- Probationary period employees may face delays or rejection
- Contract employees are assessed differently — some banks require a confirmed position
Type of income:
- Fixed basic salary: fully counted
- Fixed allowances: fully counted
- Variable allowances, overtime, commissions: banks typically average the last 3-6 months and count 70-100% depending on consistency
- Self-employed income: requires 2 years of tax returns; banks may average or use the lower year
Property type:
- Freehold properties get standard treatment
- Leasehold properties with less than 60 years remaining may receive lower margin (80% instead of 90%)
- Service apartments and SoHos may be treated as commercial properties by some banks (lower margin, higher rate)
The Uncomfortable Truth About Malaysian Affordability
Median household income in Malaysia was approximately RM6,338/month in 2022 (Department of Statistics). Using our formula, the maximum property price for a median-income household is approximately RM568,000 — assuming zero debts, 90% margin, 35-year tenure, and both household earners contributing.
The median house price in Kuala Lumpur in 2025 was approximately RM460,000 (NAPIC data). On paper, the median household can just about afford the median KL property. In practice, once you account for car loans (almost universal in Malaysia), credit cards, and PTPTN, the realistic purchasing power drops to RM350,000-RM400,000.
This is why affordable housing schemes (PR1MA, Rumah Selangorku, etc.) targeting the RM200,000-RM400,000 bracket are not "affordable" as a marketing term — they are calibrated to what the median Malaysian household can actually qualify for after accounting for real-world debt.
For more on how DSR is calculated, see the full DSR calculation guide. First-time buyers should read the complete first-time buyer guide. To model your own numbers, use the home loan calculator or the cashflow calculator.