Factory & Commercial Property Loan Calculator (Malaysia)
Calculate your property loan installments, total interest payable, and affordability for factories, warehouses, and commercial properties in Malaysia.
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Disclaimer: This calculator provides estimates only. Actual fees may vary. Please consult with your lawyer and bank for accurate figures.
How to Use the Mortgage Calculator for Industrial Properties
Our mortgage calculator helps you estimate the monthly installments for factory, warehouse, and commercial property loans in Malaysia. Simply enter the property price, down payment percentage, interest rate, and loan tenure to get instant results.
Industrial Property Financing in Malaysia
Banks in Malaysia typically offer commercial property loans with interest rates ranging from 4.5% to 6.5% per annum. The loan tenure can extend up to 30-35 years, with down payment requirements usually starting at 10-20% of the property value. Use this calculator to plan your factory or warehouse purchase effectively.
FAQ
Can I use this as a shoplot or commercial property loan calculator?
Yes. Shoplots, offices, factories and warehouses are all financed as commercial property loans in Malaysia and the monthly instalment is worked out the same way. Enter the price, your down payment, the bank's interest rate and the tenure to see the instalment, total interest and total repayment.
How much deposit do I need to buy a factory in Malaysia?
With banks commonly financing 80 to 90% of the price, your own money is a 10 to 20% down payment plus the purchase costs. For a RM3 million factory: a RM300,000 to RM600,000 down payment, RM104,000 stamp duty on the transfer, 0.5% stamp duty on the loan (RM12,000 to RM13,500 on a RM2.4 to RM2.7 million loan) and legal fees for the sale and purchase agreement of up to RM31,250 under the Solicitors' Remuneration Order 2023 plus 8% service tax, with the loan agreement's legal fees on top. The legal fees and stamp duty calculator works these out for any price.
How much can I borrow for a factory or shoplot in Malaysia?
Banks usually finance about 80 to 90% of the property value for commercial property, so plan a 10 to 20% down payment. The final margin depends on your income or business track record, the property and the bank.
What interest rate should I enter for a commercial property loan?
Commercial property loans in Malaysia are typically priced around 4.5% to 6.5% a year. Use the rate your bank quotes you, or check the current commercial property loan rates page for a starting point.
How long can a commercial property loan tenure be?
Commonly up to 25 to 30 years for industrial and commercial property, and banks usually cap it by the borrower's age at the end of the loan. A longer tenure lowers the instalment but raises the total interest.
What other costs are there besides the monthly instalment?
Stamp duty on the transfer (MOT): 1% on the first RM100,000, 2% on the next RM400,000, 3% on the next RM500,000 and 4% above RM1 million. Stamp duty on the loan agreement is 0.5% of the loan. Legal fees for the sale and the loan follow the Solicitors' Remuneration Order 2023. The legal fees and stamp duty calculator works these out.
How is the monthly instalment calculated?
With the standard amortisation formula: instalment = P x r x (1 + r)^n / ((1 + r)^n - 1), where P is the loan amount, r is the annual rate divided by 12 and n is the number of monthly payments.
Industrial Property Loans in Malaysia: How They Differ
Industrial property financing in Malaysia is structured differently from residential housing loans. Most banks treat factories, warehouses and industrial land as commercial credit, which means stricter loan-to-value (LTV) caps, shorter tenures and full-credit-assessment underwriting. As a benchmark, a Malaysian individual buying a first owner-occupier factory typically secures 80–85% LTV; second industrial property usually drops to 70%; Sdn Bhd company purchases sit at 70–75% with directors' personal guarantees. Tenures generally cap at 25 years (vs 35 for residential) and many banks shorten further to 20 years for buyers above age 50, since combined age + tenure must not exceed 70–75 at maturity.
Interest Rates & Repayment Structure
Malaysian industrial loans are priced off each bank's Base Rate (BR), Standardised Base Rate (SBR) or Cost of Funds. The all-in effective rate for industrial property in 2026 typically sits in the 4.5%–6.5% range, with strong corporate borrowers occasionally pricing below BR + 0.50%. Unlike residential flexi loans, most industrial term loans do not allow early-prepayment offset against the principal balance, extra payments are held on a separate suspense account or treated as one-off rebates. Monthly installments are calculated on a reducing-balance basis using the standard amortisation formula M = P × r(1+r)^n / ((1+r)^n − 1), which is exactly what the calculator above implements.
Total Cost of Buying, Beyond the Monthly Installment
The monthly installment is only one piece. Budget separately for: (a) MOT stamp duty progressive 1%/2%/3%/4%, (b) loan agreement stamp duty 0.5% of loan amount, (c) SPA legal fees per SRO 2023 scale (1.25% on first RM500K, 1% next tier), (d) loan facility legal fees on a similar scale, (e) professional valuation fee (typically RM2,500–RM6,000 for industrial), (f) bank processing fee RM200–RM500, (g) MRTA/MLTA optional life cover, and (h) fire insurance, mandatory for the entire bank tenure. On a RM3 million factory purchase, total upfront cash beyond down payment commonly lands around RM150,000–RM200,000.
Factory Loan Calculator FAQ
What interest rate should I plug in if I haven't been quoted yet?
For a baseline estimate use 5.5%. If your application is for an established Sdn Bhd with strong cash flow, model 4.8%; if you're a first-time individual buyer or buying second industrial property, model 6.0%–6.5% to be conservative.
Do I need to include MRTA/MLTA in the loan amount?
If financed (lump-sum into principal), yes, it inflates the loan tenure interest. If paid annually as separate fire/life premium, model the loan without MRTA. Most industrial buyers opt for level-term external life cover and pure fire insurance, since the MRTA/MLTA cost spread over 25 years adds materially to total interest.
How does flexi vs fixed loan affect the calculation?
Flexi loans let you park excess cash in a linked current account that offsets daily principal, total interest can drop 15–25% if you maintain a meaningful offset balance. The basic calculator above assumes a non-flexi term loan, which represents the worst case (highest total interest).
Can I refinance an industrial property mid-tenure?
Yes, after the initial lock-in period (usually 3–5 years). Refinancing is common in Malaysia when BNM's Overnight Policy Rate cycles change rates by 50bps or more, a 1% rate drop on a RM2.4M loan saves roughly RM350,000 over the remaining 20-year tenure.
Also try our Legal Fees & Stamp Duty Calculator →
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