Borrowing capacity

Before you look for a property, it is always good find out how much can you afford by calculating your borrowing capacity. There are 3 things you want to be aware of DSR, CCRIS and CTOS.

Debt Service Ratio

It is a method by percentage used by banks to calculate whether you can afford the loan you’re applying. It basically derived from your monthly commitment (as stated in CCRIS) divide by monthly net income and times 100 for percentage. The lower your DSR, the higher your eligibility and chances to get loan approval.
Check your DSR


Central Credit Reference Information System (CCRIS) is a system created by Bank Negara Malaysia’s (BNM). CCRIS is basically a centralised database which offers a picture of your financial health. BNM is provided with monthly updates by relevant institutions to compile the necessary information, such as:
  • Banks
  • Insurance providers
  • Development financial institutions
  • Payment instrument issuers
  • Credit leasing companies
  • Government agencies
  • Private utility companies


CTOS is a private company, and one of Malaysia’s leading Credit Reporting Agency (CRA) under the Credit Reporting Agencies Act 2010. They provide credit reporting and is also widely used by financial institutions to determine an applicant’s creditworthiness aside from CCRIS. Usually, financial institutions use more than one credit report to determine an applicant’s credit health and CTOS is also known to be widely used in Malaysia. CTOS produces the MyCTOS Basic Report and MyCTOS Score Report.

They obtain their information from various public sources such as:
  • National Registration Department
  • Registrar of Societies
  • Malaysia Insolvency Department
  • Companies Commission Malaysia (CCM)
  • Publications of legal proceedings and notices in newspapers and government gazettes.
  • Subscribers’ contributions of litigation records