You may have a dream home in mind but it must fit your budget. Bear in mind that the bigger you allocate for your desired property, the higher your commitment level in servicing the loan. Therefore, points that you need to consider:

• Work out a budget to determine how much you can afford.
• As a guide, your monthly commitments on monthly instalments for your house, car and other payments should not exceed 1/3 of your gross monthly household income.


Example:

Gross monthly household income	=	RM4,800
House/Car/Insurance/etc	=	total should not exceed
		RM1,600



• Your source of funding can come from:
1. savings
2. withdrawal from Employees’ Provident Fund (EPF)
3. loan facility from a financial institution

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