• Learn how Debt Service Ratio (DSR) impacts home loan approval, with tips on calculating and managing DSR effectively.
• Explore the benefits of Myra’s Super Calculator as a tool to assess loan eligibility and streamline the home loan preparation process.
• Discover the importance of credit scores, how banks use them in loan decisions, and practical tips for monitoring and maintaining a favorable credit score.

Thinking about buying your first home? It might seem a bit overwhelming with the down payment, legal stuff, and getting a home loan. But if you plan ahead, getting your dream home can be easier. 

What Should I Know Before Applying For A Loan?

Before the banks approve your loan, they'll give your finances a quick once-over, checking your Debt Service Ratio (DSR) and your credit report. Want a sneak peek at your eligibility? Try Myra’s Super Calculator – it's like a cheat code for loan prep.

How Can I Check My Debt Service Ratio (DSR)?

A big chunk of a bank’s decision to approve your home loan falls on your Debt Service Ratio (DSR). Your DSR shows how much of your income can be used to pay for your monthly installment. DSR is calculated by measuring your total commitments against your monthly income. Your DSR is then compared against the bank’s maximum DSR limit, which varies from bank to bank. If your DSR doesn’t exceed the limit, Voila! You’re one step closer to receiving the home loan you applied for. A good practice is to keep your DSR less than 70%. 

DSR Formula :

Remember, the lower your DSR %, the higher your chances are in getting the loan! 

Note: Make sure to include your monthly home loan amount as one of your ‘commitments’ in the DSR % calculation.

How Can I Check My Credit Score?

Your credit score is a number that banks use to assess if you're likely to repay a loan on time. They review your credit history, considering factors like the number and duration of your loans, payment habits, recent credit activity, and any financial legal issues. To get a good credit score, you may check your credit reports from credit reporting systems like CCRIS and CTOS. These reports reflect your credit behavior, helping you understand and improve your creditworthiness. It is good practice to periodically check your credit score and manage your credit responsibly to enhance your chances of getting that dream home loan approved. Check out this article to see how you could get a perfect score on your credit report!