How to Get a 100% Full Housing Loan in Malaysia 2024 (1 Time Pass Guides)

How to Get a 100_ Full Housing Loan in Malaysia 2023 (1 Time Pass Guides)

As a first-time home buyer in Malaysia, I know the journey can be daunting. That’s why I discuss this topic as the guidance for you.

It’s tailored for those seeking their first home. Here, I explain the essentials of securing a 100% housing loan. I have done much research and will provide clear and concise insight.

You can find it all here, from understanding eligibility to navigating application processes.

Understand the minimum requirement for applying for a housing loan

As a first-time home buyer in Malaysia, knowing the minimum requirements for a housing loan is crucial.

1. Your First Home

Firstly, you must be purchasing your first home. This is key for most 100% financing options.

The property’s cost should be below RM500,000, as higher-valued properties often have different financing rules.

2. Credit History

Your credit history is vital, too. Banks assess this to determine your loan eligibility. Ensure your credit score is healthy. This means paying debts on time and managing credit cards wisely.

3. Debt Service Ratio

Your Debt Service Ratio (DSR) is also crucial. It reflects your ability to repay the loan based on your income and debts. Banks prefer a DSR that doesn’t exceed 70%.

4. Employment Stability

Employment stability is another factor. A steady job and consistent income reassure lenders. Prepare essential documents, too. These include your identity card, property documents, income, and bank statements.

5. Living in Your First Home

Finally, residing in the property is often a condition. Most 100% loans require you to live in the home, not rent it out. Understanding these requirements puts you in a better position to successfully apply for a housing loan in Malaysia.

4 Guidelines to help you get a one-time pass housing loan application

The housing loan process in Malaysia might feel complex to you, especially for first-time home buyers. I have compiled four essential guidelines to streamline your application and increase your approval chances. 

These tips are designed with first-home buyers in mind, focusing on what’s most important for a successful application. They’ll help you understand the nuances of housing loans and prepare effectively. With these guidelines, you can approach your housing loan application more confidently and clearly, aiming for a one-time pass.

Step 1: Build a good credit profile

Step 1 Build a good credit profile

A strong credit profile is fundamental in securing a housing loan for first-time home buyers in Malaysia.

Start by ensuring timely payments across all financial commitments. This includes credit card bills, student loans like PTPTN, car loans, personal loans, and utility bills. Consistent on-time payments demonstrate financial reliability, a key factor for lenders.

Before applying for a housing loan, checking your credit standing is crucial. In Malaysia, this involves reviewing your CTOS and CCRIS profiles.

CTOS compiles your credit history, while CCRIS tracks your loan and financing history over the last 12 months. Any outstanding amounts or irregularities in these reports can be red flags for banks.

Ensure your CTOS profile is clear of any outstanding debts. If there are discrepancies, address them promptly. A clean and positive credit report significantly boosts your chances of loan approval.

Remember, building a good credit profile isn’t an overnight process!

It requires consistent financial discipline and monitoring. By managing your debts wisely and keeping a close eye on your credit reports, you’re laying a strong foundation for your housing loan application. This proactive approach is a cornerstone in your journey to becoming a first home buyer.

Step 2: Calculate your debt service ratio (DSR)

Step 2 Calculate your Debt service ratio

For first-time home buyers in Malaysia, understanding and calculating your Debt Service Ratio (DSR) is crucial for a housing loan application. DSR measures your ability to manage monthly loan payments relative to your income. It’s a key indicator banks use to assess your financial health.

The formula for DSR is:

DSR = Total Monthly Debt Commitments/ Net Monthly Income * 100

This includes obligations like credit card payments, car loans, and other personal loans.

A healthy DSR rate is typically below 70%. This signals to lenders that you have a balanced financial standing, with enough income to cover loan repayments after your other debts. Staying within this threshold enhances your prospects of securing a housing loan. 

Remember, a lower DSR is always better in the eyes of the banks. It showcases your financial stability and minimizes risk from the lender’s perspective, making you an ideal candidate for a housing loan as a first-time home buyer.

Step 3: Prepared all the necessary documentation

Step 3 Prepared all the necessary documentation

You need all the right documents for a smooth housing loan application in Malaysia, especially for first-time home buyers.

Generally, you’ll need your identity card, property documents (like the Sales and Purchase Agreement), income statements, and recent bank statements. These prove your identity, financial stability, and commitment to the property.

  • Personal Identification: A copy of your IC (Identity Card).
  • Proof of Income: Latest salary slips (3-6 months) and bank statements.
  • Employment Verification: Employment confirmation letter or similar proof.
  • Property Documents: Sales and Purchase Agreement, booking receipt from the developer.
  • Financial Records: Latest EPF statement, income tax return form (Form B/BE) with tax payment receipt.

If you’re self-employed or a freelancer, the document list extends.

You’ll need proof of your business, like the business registration certificate. Also, prepare your income tax returns and financial statements for the past few years. These documents provide a clearer picture of your income consistency and financial health. 

Having these in order strengthens your application, showcasing your reliability as a borrower.

  • Business Documentation: Business registration certificate to prove the legitimacy of your business.
  • Bank Statements: More extended period bank statements (6-12 months) to show consistent income flow.
  • Income Tax Returns: Recent income tax return forms with tax payment receipts.
  • Profit and Loss Statements: Financial statements for the last 1-2 years clearly show your income stability and financial health.

Step 4: Having a stable Job 

Step 4 Having a stable Job

Job stability is a significant factor for a successful housing loan application in Malaysia, especially for first-time home buyers.

Lenders typically look for a minimum employment period of 3-6 months. This period can demonstrate your ability to maintain steady employment, ensuring you have a consistent income to meet monthly loan repayments.

If your income is primarily commission-based and lacks an EPF record, lenders might see this as a risk. The absence of EPF contributions can suggest income instability, making it harder for banks to assess your financial reliability.

The duration of your current employment also plays a crucial role. A longer tenure with your current employer is seen favourably, as it indicates job security and a stable income stream. This is particularly important for first-time buyers who may not have a long history of financial transactions or large savings.

In essence, lenders seek assurance that you can sustain loan repayments over time.

A stable job with a consistent income history is one of the best ways to provide this assurance and strengthen your housing loan application.


In conclusion, securing a housing loan in Malaysia, especially for first-time home buyers, involves several strategic steps. Building a good credit profile is essential; timely payments and checking your credit reports (CTOS and CCRIS) are key. 

Understanding and calculating your Debt Service Ratio (DSR) is crucial to show lenders your repayment capacity. Preparing the necessary documentation thoroughly, including additional paperwork for self-employed or freelance applicants, is vital. 

Lastly, demonstrating job stability (preferably a tenure of at least 3-6 months) significantly bolsters your application, especially for those with commission-based incomes.

Following these steps diligently enhances your prospects of successfully acquiring a housing loan and moving towards owning your first home.


What affects loan approval?

Loan approval depends on factors like credit score, Debt Service Ratio (DSR), income stability, employment duration, and credit and financial history.

Will my credit profile affect the housing loan interest rate?

Yes, a better credit profile often leads to more favourable interest rates, indicating lower risk to the lender.

How long do you wait for a housing loan to be approved?

The approval process can vary, typically taking several weeks. It depends on the lender and the completeness of your documentation.

Can I adjust the loan tenure?

Yes, loan tenure can often be adjusted, but it depends on the lender’s policies and your financial eligibility.

How is the housing loan process in Malaysia?

It involves assessing your credit profile, calculating DSR, gathering the necessary documentation, proving stable income, and choosing a suitable loan package. The process includes evaluation by the lender before approval.


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