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Plan A Budget For Your New Home in Malaysia!


Planning a budget for a new home in Malaysia is an important step in the home-buying process. It helps you determine how much you can afford to spend on a home and ensures that you don’t overspend or end up in debt. Here are some tips to help you blueprint your budget when buying a new home!

Determine And Calculate Your Income

The first step in planning a new home’s budget is determining your income. This includes your salary, bonuses, and any other sources of income. It directly affects the amount of your mortgage loan you’re able to receive. For example, if your monthly income is RM5,000, you can use this as a starting point for your budget. The next step is to calculate your expenses. This includes your monthly bills, such as rent, utilities, debt and groceries. For example, if your monthly expenses are RM3,000, you can subtract this from your income to determine how much you have left for a mortgage payment.

Decide Your Future Property

For first-time homebuyers, the are multiple affordable housing schemes offered in the current market based on government policies and initiatives as an encouragement to increase property buying. Consider the location, size, and type of property you want to buy and make sure you are in contact with an experienced and reliable developer

Figure Out Your Down Payment

The down payment is the amount of money you need to put down upfront when buying a home. In Malaysia, the down payment is typically 10% to 20% of the purchase price. For example, if you’re buying a home for RM500,000, you’ll need a down payment of RM50,000 to RM100,000.

CalculateYour Mortgage Payment

Once you’ve determined your down payment, you can calculate your mortgage payment. This includes the principal, interest, taxes, and insurance. For example, if you’re taking out an RM400,000 mortgage with a 4% interest rate over 30 years, your monthly payment would be around RM1,900

Consider Other Expenses and Monthly Instalments

In addition to your mortgage payment, there are other expenses to consider, such as closing costs, home insurance, and maintenance costs. For example, if your closing costs are RM10,000 and your home insurance is RM1,000 per year, you’ll need to factor these into your budget. 

Unless you are financially able to purchase your new home straight off the bat, you should consider taking out loans or other financial institutions that could aid in paying for your home. By following these steps, you can create a realistic budget for your new home in Malaysia. 

It’s important to remember that your budget should be flexible and allow for unexpected expenses. With a solid budget in place, you can confidently shop for a home that fits your financial situation! 

If you feel like your new home is missing a touch of your personality or needs a bit more tweaking, Godeco offers a FREE consultation, site visits and 3D sketch designs to help you realise your dream home as much as possible, just visit our website or contact us at 03–8740 7654 or email and we will reach out to you ASAP!

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