Check Home Loan Eligibility

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Checking your eligibility will also give you an advantage during negotiations . The seller will definitely consider your offer, because finding a buyer who is eligible for a loan is not easy.

You can ask a banker or real estate consultant to help you check. But if you want to be quick, you can also do the calculation yourself. How do you do it?


To check your eligibility, calculate your Debt Service Ratio. It is one of the main belgium email list methods that banks use to determine whether you can afford a loan or not.

Formula Debt Service Ratio (DSR):

(Monthly commitment amount + Installment of the house you want to buy) / Net income.

The total monthly commitment is the total of all monthly payments, for all loans you have with a financial institution. This could be personal loans, car loans, home loans, etc.

You can calculate the installments for the house you want to buy using the bank's monthly payment calculator.

Also read: How to Calculate Housing Loan Eligibility

Finally, there is net income. Net income is your gross income, minus EPF, SOCSO, Periodic Tax Deductions (PCB) and zakat.