The Debt Service Ratio (DSR) is the single most important number in your home loan application. It determines how much you can borrow and whether your loan is approved. Malaysian banks typically cap DSR at 60%โ70%, though it varies by bank and income level.
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๐ณ DSR Calculator Malaysia
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What Is DSR?
DSR measures what percentage of your gross income goes towards debt repayments. It includes all existing loans (car, personal, PTPTN) plus the new home loan instalment you are applying for.
DSR = (Total Monthly Debt Repayments รท Gross Monthly Income) ร 100
DSR Limits by Bank (2026)
| Bank | Standard DSR Limit | High Income (>RM10k) |
|---|---|---|
| Maybank | 70% | 80% |
| Public Bank | 70% | 75% |
| CIMB | 65% | 75% |
| RHB | 60% | 70% |
| AmBank | 60% | 70% |
| BSN | 60% | 65% |
Worked Example
Gross income: RM6,000/month
- Car loan: RM800/month
- Personal loan: RM400/month
- New home loan: RM1,800/month
- Total commitments: RM3,000
DSR = RM3,000 รท RM6,000 ร 100 = 50% โ Approved by all banks
Check your own DSR instantly with our ๐ณ Personal Loan DSR Calculator.
How to Improve Your DSR
- Settle small loans first โ pay off that PTPTN or personal loan before applying
- Reduce credit card limits โ banks count 5% of your total credit limit as a commitment
- Add a co-borrower โ a joint application adds their income to the denominator
- Include all income โ fixed allowances, rental income and overtime can be declared
- Choose a longer tenure โ extending from 25 to 35 years reduces the monthly instalment and thus your DSR
๐ก Key Takeaway
Aim for a DSR below 60% before applying. Paying off a RM400/month personal loan before your home loan application can increase your borrowing capacity by approximately RM72,000.
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