How To Calculate your Debt Service Ratio DSR
Nan : My salary is RM 3000, can I buy a house worth RM 400K? Ng : Do you have any commitment? Nan : I have a car, PTPTN, and a credit card. Ng : Look like DSR might be tight Nan : What's DSR? Ng : Let me explain... What Is Debt Service Ration DSR? DSR is a method used by banks to calculate whether or not you can afford the loan you're applying for. When bank grant the loans, the will also analyze borrower has the ability to apply for a housing loan and to avoid the losses. My personal advise is to keep the DSR under 60%. The lower the DSR ratio, the less risky it is for the borrower. How Do You Calculate DSR? DSR = Existing Commitment + New Commitment x 100% Net Income Salary DSR RM 3,000 below 50% RM 3,000 - RM 5,000 70% RM 5,000 - RM 10,000 80% RM 10,000 above 90% Do you know which bank calculates income by Gross income or Net income? Do you know which bank calculates income by Salaries or Income tax? Do you know which bank taking 100% for basic salary and fix allowance, bu...
