Under RM750k on Our Listings: What a 90% Loan Costs Each Month
Adrian Wong
Registered Negotiator · REN74052
Photo: Crannofonix / Wikimedia Commons, CC BY-SA 4.0, sunrise over the Kuala Lumpur skyline
Most investor talk in Kuala Lumpur and Selangor starts with price and yield. I think the better first question is what the monthly loan instalment is, because that is the number your rent has to beat. This guide works that out for seven projects on our listings with starting prices under RM750,000.
Why the instalment comes first
A tenant pays rent, but the bank is paid first. If the rent does not cover the instalment, you top up the gap every month, and that gap does not shrink with a rising valuation.
Bank Negara kept the Overnight Policy Rate at 2.75% at its 3 September 2026 meeting. The next decision is due on 5 November 2026. One research house, Kenanga, now expects a rise to 3% in the first quarter of 2027, according to Business Today on 8 October 2026. That is one forecast, not a decision, but it is a reason to test your numbers at a higher rate.
Your bank sets your actual loan rate, and it will not equal the OPR. For the table below I assume a 4.0% loan rate, a 90% loan and a 35-year tenure. These are my assumptions, not a bank offer. Your approved margin, loan size and tenure will differ.
What the seven projects cost per month
The prices below are the "from" prices on our listings, which means the starting price of the smallest or cheapest unit, not an average. Completion years are as listed. Instalments are my own calculation under the assumptions above and exclude legal fees, stamp duty and loan insurance.
| Project | Tenure | Completion year | From price | 10% down | Monthly at 4.0% |
|---|---|---|---|---|---|
| Luminar Residence @ Federal Avenue, Subang | Freehold | 2029 | RM328,000 | RM32,800 | RM1,307 |
| d'Brightton Titiwangsa | Leasehold | 2025 | RM459,000 | RM45,900 | RM1,829 |
| Padang Residences | Leasehold | 2027 | RM580,800 | RM58,080 | RM2,314 |
| Kensho Residence @ Taman Desa | Leasehold | 2026 | RM623,000 | RM62,300 | RM2,483 |
| Aster Hill Sri Petaling | Freehold | 2027 | RM627,000 | RM62,700 | RM2,499 |
| Tangen Residences | Freehold | 2027 | RM659,000 | RM65,900 | RM2,626 |
| Miranda Hill @ North Kiara | Freehold | 2027 | RM730,250 | RM73,025 | RM2,910 |
The 4.78% hurdle
Under these assumptions the instalment works out to about RM398.50 a month for every RM100,000 of price, or roughly 4.78% of the price each year. That holds for every row above, because the loan is the same share of each price.
So the gross rent has to exceed about 4.78% of the purchase price a year just to match the bank. For the RM627,000 Aster Hill starting price, that is about RM29,988 a year, or RM2,499 a month. Rent also has to cover service charge, quit rent, assessment, insurance and the months a unit sits empty. I have not put rent figures in the table because I do not have a verified rent for these specific units. Ask for recent tenancy evidence in the same building or a nearby one before you rely on any number.
How a rate change moves the number
Take Aster Hill again. At 3.5% the monthly instalment is about RM2,332, at 4.0% it is RM2,499, and at 4.5% it is RM2,671. Half a point of rate is worth about RM170 a month, or just over RM2,000 a year. On a thin margin, that can decide whether a unit is cash neutral or a monthly drain.
Freehold, leasehold and the exit
Four of the seven are freehold and three are leasehold. For a buy-and-hold investor on a tight budget, tenure matters less in the first ten years than the rent-to-instalment gap. It matters more at exit, because a future buyer will also be borrowing against the remaining lease. I would not pay a leasehold price that is close to a freehold one nearby.
Who this list is for
This list is for Malaysian citizens. The federal guideline bars non-citizens from buying residential units priced below RM1,000,000, and the National Land Code defines a non-citizen as anyone who is not a citizen, as set out in the Bar Council's Circular 444/2024. State thresholds can be higher, so a foreign buyer should read our foreign-buyer guides instead.
Before you commit
For a project with a completion year of 2026 or later, ask the developer for the billing schedule: what you pay, when, and what your instalment is before the unit is ready. All prices and completion years here come from our own listings and can change, so confirm the current figures with the developer, your bank and your lawyer.