Can I Refinance with High DSR in Malaysia?

QUICK ANSWER

Yes, you can refinance with high DSR. While most banks cap at 70%, Hong Leong accepts up to 75%, and some banks go case-by-case up to 80% for strong applicants. Options include adding a co-borrower, debt consolidation, or working with a mortgage broker who knows which banks are flexible.

Bank DSR Limits

BankStandard DSRMaximumBest For
Hong Leong70%75%High DSR applicants
CIMB70%75%Self-employed
Maybank70%75%Existing customers
RHB70%70%Standard cases
Public Bank65%70%Low-risk only
AmBank70%70%Standard cases

How to Refinance with High DSR

1. Add a Co-Borrower

Spouse or family member's income combined = lower DSR

2. Debt Consolidation Refinance

Roll credit cards and personal loans into home loan at lower rate

Learn more

3. Pay Off Small Debts First

Clearing a RM500/month car loan can drop DSR by 5-10%

4. Choose Longer Tenure

35 years vs 25 years = lower monthly payment = lower DSR

5. Work with a Mortgage Broker

Brokers know which banks are flexible for your profile

Calculate Your DSR

Check your current DSR and see how much you can borrow.

Open DSR Calculator

What If I Am Still Rejected?

  • Wait 3-6 months before reapplying
  • Pay down existing debts
  • Try a different bank
  • Consider cash-out to consolidate debts
Full guide: What to do when home loan is rejected

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Frequently Asked Questions

Can I refinance with 70% DSR?

Yes, most Malaysian banks accept refinancing applications with 70% DSR as their standard limit. Hong Leong and CIMB may approve up to 75% on a case-by-case basis for strong applicants with good credit history and stable income.

Which bank accepts highest DSR in Malaysia?

Hong Leong Bank typically accepts the highest DSR in Malaysia, approving up to 75% DSR for eligible applicants. CIMB and Maybank may also go up to 75% for existing customers or exceptional cases. Public Bank is more conservative at 65-70%.

How to lower my DSR for refinancing?

To lower your DSR: 1) Pay off or settle small debts like credit cards or personal loans, 2) Add a co-borrower to increase combined income, 3) Choose a longer loan tenure to reduce monthly payments, 4) Consider debt consolidation to combine high-interest debts into your home loan.

Can I add my spouse to reduce DSR?

Yes, adding your spouse as a co-borrower is one of the most effective ways to reduce DSR. The bank will calculate DSR based on combined household income, which can significantly lower your DSR percentage and improve approval chances.

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