If you look at your budget, which we talked about above, you’ll be able to estimate the price range of the house that you can afford to buy.
When it comes to down payments, the rule of thumb is to prepare about 20% of the total house purchase price or value.
For example: If the purchase price of the house is RM 500,000. At 20%, you should prepare RM 100,000.*
(*Example is for illustration purposes only)
You may opt to pay more than 20% down payment.
Putting down a larger down payment will help to lower the amount of financing you will require and thus lower the interest you have to pay saving you money in the long run.
It will also reduce your monthly home loan instalments.
A 20% down payment should be your goal, but don’t let the 20% rule stop you from owning your own home. It is not a hard and fast rule, but merely a guide.