Section 1: Understanding Entry Price, Loan Structure & PSF in Property Investment
Introduction: After you choose your project in PropertyLab, the next step is to select your preferred layout. Each layout will display an estimated entry price.
Now that you've seen your layout's estimated pricing, this section will help you understand what that price really means — including how it's calculated, how banks treat your loan application, and how to evaluate the value of your chosen unit.
Q1: What's the Difference Between SPA Price and Net Price (Entry Price)?
The SPA Price is the official price stated in your legal agreement with the developer. The Net Price, also called the Entry Price, is what you actually pay after subtracting rebates or discounts.
Example:
SPA Price = RM500,000
Developer Rebate = 10% = RM50,000
Net Price = RM500,000 - RM50,000 = RM450,000
Q2: How is the Loan Amount Calculated?
For the first two residential properties, you can borrow up to 90% of the SPA Price. From the third property onward, the maximum is 70%.
Example:
SPA Price = RM500,000
Net Price = RM450,000
Loan (70%) = RM350,000
Downpayment = RM450,000 - RM350,000 = RM100,000
Q3: What Is the Interest Rate and How Is Installment Calculated?
PropertyLab uses a default interest rate of 4.2%. Your monthly installment is calculated based on loan amount, interest rate, and tenure.
*Actual rates may vary depending on your financial profile. Speak to our investment consultant for a personalized quote.*
Q4: What's the Maximum Loan Tenure You Can Apply For?
Bank Negara guidelines say maximum tenure = 70 - your age. This means your eligible loan tenure gets shorter as you age.
If you are applying jointly with another person, the bank will use the younger applicant's age to determine the tenure — subject to the maximum cap of 35 years.
Example:
Your age = 45 → 70 - 45 = 25 years
Your child's age = 25 → 70 - 25 = 45 years (but capped at 35)
Since your child is younger and qualifies for 45 years, the loan tenure for the joint name will follow your child's profile and allow 35 years as the final tenure.
Q5: What Is PSF (Price Per Square Foot) and Why Does It Matter?
PSF helps you compare value across different properties. It's calculated as Net Price ÷ Built-up Size.
Example:
Net Price = RM450,000
Size = 669 sqft
PSF = RM450,000 ÷ 669 = RM672
Notes for Beginners
- SPA Price is not your real cost — Net Price is what you actually pay.
- Loan amount is based on SPA Price, not Net Price.
- After two properties, loan eligibility drops from 90% to 70%.
- Loan tenure = 70 - age. Joint loans follow the younger applicant.
- Installment depends on interest rate and tenure — defaults are just estimates.
- PSF is used later to assess market value competitiveness.
Recap Summary Table
| Term | What It Means |
|---|---|
| SPA Price | Official price in your legal agreement |
| Net Price (Entry) | Actual price after rebates — your true cost |
| Loan Amount | Based on SPA Price (90% or 70%) |
| Downpayment | Net Price - Loan Amount |
| Interest Rate | Default is 4.2%, varies by profile |
| Tenure | Max 35 years, subject to age (70 - age) |
| PSF Price | Net Price divided by built-up size |