Start with the loan, not the house price
A RM500,000 property does not necessarily mean a RM500,000 mortgage. Your down payment reduces the amount financed. The remaining loan, interest rate and tenure determine the estimated monthly mortgage payment.
Then compare the payment with take-home income
Your gross salary is useful for employment and lending calculations, but your household lives on cash after deductions. For personal budgeting, compare the mortgage and existing commitments with your estimated take-home pay.
Existing commitments can change the answer significantly
Two households with the same salary can have very different home budgets. Car loans, personal loans, credit commitments and family expenses reduce the room available for a mortgage.
Bank approval and comfortable affordability are different
A lender decides whether it is prepared to lend. Your own affordability decision asks whether you can sustain the payment while still meeting the rest of your financial goals. KiraFirst focuses on the second question.