Malaysian (non-Bumi) buyers
Will your home loan be approved? DSR, CCRIS and CTOS explained
Quick answerBanks look at three things: DSR (all monthly debt ÷ net monthly income; within 60%–70% is generally safe), CCRIS (Bank Negara's 12-month repayment record) and CTOS (legal cases, business records and more). Download your free CCRIS, clear any arrears and cut credit card limits and instalment plans before applying — your odds rise a lot.
30-second summary
- DSR: Monthly debt ÷ net income; generally ≤60%–70%
- CCRIS: 12-month repayment record; free via eCCRIS
- CTOS: Litigation, bankruptcy, business records
- Credit cards: Balances and limits may count
- Self-employed: 2 years of tax returns + bank statements
- Singapore income: May be discounted or converted conservatively
How DSR is calculated
DSR = all monthly debt repayments ÷ net monthly income. Debts include the new home loan, existing home loans, car loans, personal loans, PTPTN and credit card minimums (some banks use a percentage of balance or limit).
Example: net income RM8,000, car loan RM1,000, PTPTN RM200. At a 65% DSR the debt cap is RM5,200, leaving about RM4,000 a month for a home loan — roughly RM900k over 35 years at 4%.
CCRIS vs CTOS
| CCRIS | CTOS | |
|---|---|---|
| Run by | Bank Negara | Private credit bureau |
| Shows | 12-month record of bank loans and cards | Litigation, bankruptcy, business links, some payment records |
| How to check | eCCRIS, free | CTOS website (partly free) |
| Red flags | Consecutive arrears (1, 2, 3…) | Lawsuits, bankruptcy |
10 ways to improve your odds
- Download CCRIS, clear arrears and wait a few months for a clean record.
- Lower or cancel unused credit card limits.
- Avoid new instalment plans (phones, appliances) before applying.
- Pay off small personal loans.
- Prepare full income proof (payslips, EA form, EPF statement).
- Self-employed: 2 years of Form B and 6–12 months of bank statements.
- Apply jointly (spouse, parents, siblings) to raise total income.
- Choose a longer tenure to lower the instalment (more interest overall).
- Compare 2–3 banks at once.
- Get help from an agent or loan officer who knows the banks.
After a rejection
Ask why (DSR? record? valuation?) and fix that. If debt is heavy, AKPK offers free counselling and debt management plans.
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Frequently asked questions
What DSR do I need for a home loan?
Generally within 60%–70%; banks differ by income level, and higher earners may get a higher DSR.
Can I get a loan with arrears on CCRIS?
It depends how serious and how recent. Clearing arrears and paying on time for several months improves your chances.
Does PTPTN affect a home loan?
Yes. PTPTN repayments count in DSR, and arrears hurt your record.
How do self-employed people get a home loan?
Usually at least 2 years of tax returns (Form B), company registration and 6–12 months of bank statements.