MORTGAGE DEBT SERVICE RATIO FORMULA

//MORTGAGE DEBT SERVICE RATIO FORMULA

MORTGAGE DEBT SERVICE RATIO FORMULA

 DEBT SERVICE RATIO FORMULA


>>Income Per Month

Example:

Item RM
Basic Salary RM5000.00
Fix Allowance RM500.00

Gross Income: RM5,500


>>Deduction

Example:

Item RM
EPF RM550.00
Socso RM14.75
Tax RM300.00

Total Deduction: RM864.75

 


Example:

Nett Income: RM5,500.00 – RM864.75 = RM4,635.25

Monthly Commitment

  • New Loan / Financing = A
  • Car Loan = B
  • Personal Loan = C
  • Credit Card Use = Credit Limit × 5% = D

Example:

Item RM Remark
New Loan / Financing RM1500.00
Car Loan RM750.00
Personal Loan RM500.00
Credit Card RM150.00 RM3000 × 5%

Total Commitment: RM2,900.00


DSR

CASE 1: Nett Income below RM3,000, max. DSR qualification is 60%(Estimated)

CASE 2: Nett Income RM3,000 and above, max. DSR qualification is 75%. (Estimated)

Example:

DSR = (RM2900 ÷ RM4635.25) × 100 = 62.56%

Based on Case 2, 62.56% is within the maximum DSR qualification range (1% – 75%), so theoretically it’s QUALIFIED for the housing loan.

 

This is just for the reference only.However, different bank has different DSR. Some people got more than the max. DSR qualification, but still got their loan approved by the bank.

Kindly Contact MTI Mortgage Consultants for further detail.

Our Consultant will provide the best opinion to you.

Let Us BE Your Mortgage Consultant 

By |2018-12-18T11:12:04+00:00December 14th, 2018|MTIMortgageArticle|