Home Loan Rate Calculator

LoanPro is an effective third-party agent for financial institutions and banks. Rest assured as we have a group of energetic and professional consultants with good experience on local as well as international banking institutions with impressive mortgage industry knowledge.

Besides being known as the best loan specialist to the first-time purchaser, we are also highly experienced in refinancing and property investment. We also provide various online tool in our website such as housing loan calculator Malaysia


You must first know that the two most commonly used ways of calculating housing loan’s interest are the Reducing Balance Method and the Flat Interest Rate Method. Therefore, make sure which method is being used before you go on board on any loans.

a) Reducing Balance Method

Interest rate per instalment x Remaining loan amount = Interest Payable per Instalment

This way of calculating is normally use to count the interest payable for mortgage loans, credit cards, or overdrafts (OD) facilities. What matters is the remaining loan balance as you only pay your interest based on that. The same interest rates being used for Fixed Deposit (FD) and Savings Accounts is similar to the Effective Interest Rate which is what is being quoted for loans such as these.

b) Flat Interest Rate Method

(Original loan amount x number of years x Interest rate p.a) / Number of instalment = Interest payable per instalment

Personal loans or car purchase loans usually use this method of calculation to determine the payable interest. The interest you pay is fixed on the entire loan balance throughout the duration of the loan.And because of it, this is less beneficial for the borrowers as even if you pay down the loan, the interest that you will be paying will not lessen

For more information about the property loan Malaysia, please visit : loanpro.com.my

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Posted by admin
Dated: 28th March 2014
Filled Under: Malaysia information