I have been checking home loans offered by various local banks and they are all offering a standard BLR minus 2.2, unless one takes out a loan on shorter term, or a smaller amount.
For a house selling at RM300,000 and if one were to take up about 70% loan, it would be a monthly repayment of above RM1k.
This is quite a sum, and if the borrower also has a car loan, then he or she needs to be drawing a monthly salary or at least RM4500.
A friend who works in Ipoh, and has two young children, told me that even in this relatively cheaper city, household income has to be at least RM5000 in order to lead a somewhat comfortable life.
As expenses increase when the children grow older, RM5000 won’t be enough.
How lah? Everything is getting more expensive, houses are getting elusive, and our incomes are not increasing in tandem!