If you’re buying a home in Malaysia with a loan amount of RM 300,000, your monthly repayment will depend on two main factors:
- The interest rate your bank offers
- The loan tenure (how many years you take to repay)
On average, with an interest rate of 4.5% per annum over 30 years, your monthly repayment works out to around RM 1,520. Shorter tenures increase the monthly amount but save you interest in the long run.
What Affects Your Housing Loan Repayment?
1. Interest rate
Most Malaysian banks base housing loans on the Standardised Base Rate (SBR) plus a spread. Even a small 0.25% change can shift your monthly installment by RM 30–50.
2. Loan tenure
- 30 years: lower monthly payments, higher total interest paid
- 20 years: higher monthly payments, lower total interest paid
3. Loan type
- Conventional housing loans
- Islamic financing (Shariah-compliant)
Monthly Repayment Scenarios for RM 300,000
Here’s a quick comparison of how much you’d pay depending on interest rate and tenure:
| Loan Tenure | 4.0% Interest | 4.5% Interest | 5.0% Interest |
|---|---|---|---|
| 20 years | RM 1,818 | RM 1,900 | RM 1,980 |
| 25 years | RM 1,584 | RM 1,667 | RM 1,750 |
| 30 years | RM 1,432 | RM 1,520 | RM 1,610 |
(Estimates using standard amortization formula)
👉 Want to try different numbers? Use this Malaysia mortgage calculator to customize repayment estimates for your own loan.
Amortization: How Payments Change Over Time
In the first few years, most of your monthly repayment goes toward interest, not the principal. Over time, this balance shifts, and more of your payment reduces the loan balance.
To see a detailed schedule, check the loan amortization calculator.
How to Reduce Your Monthly Housing Loan Cost
- Refinance at a lower rate: Switching banks or packages could save hundreds monthly. Explore scenarios with the loan refinancing calculator.
- Make extra payments: Adding even RM 100 extra per month can cut years off your loan. Try it with the early settlement calculator.
- Choose tenure wisely: Shorter tenure = higher monthly payment but far less interest overall.
FAQs
Q: How much is the repayment for RM 300k over 30 years at 4.5%?
About RM 1,520 per month.
Q: How about RM 300k over 20 years?
At 4.5% interest, roughly RM 1,900 per month.
Q: What if rates increase to 5%?
Expect to pay ~RM 1,980 monthly for 20 years or ~RM 1,610 monthly for 30 years.
Q: Can I lower my repayment with EPF withdrawals?
Yes, EPF Account II can be used to reduce principal or monthly repayments.
Q: Which banks in Malaysia offer the lowest rates now?
Rates vary by borrower profile, but comparing packages with tools like loan comparison calculators is the best way to decide.
Fredrick is the creator behind houseloancalculatormalaysia.online, dedicated to helping Malaysians easily understand and calculate their home loan payments. With a focus on accuracy and simplicity, Fredrick develops reliable tools and clear guides to empower users to make informed financial decisions. His goal is to provide trustworthy, user-friendly resources that save time and reduce confusion in the complex world of home loans.