Al Rajhi is an international banking market based in Riyadh, Saudi Arabia, that opened its first overseas branch in Malaysia in October 2006. Al Rajhi also offers a wide range of Shariah-compliant products and services to meet the needs and demands of their customers, with 8 branches in the Klang Valley and one each in Johor Bahru, Melaka, Penang, Ipoh, Kota Bharu, Kuantan, Kuching, Sg. Petani, and Kota Kinabalu.
What is a home loan?
A home loan is one of the most common ways to purchase a home. A loan from your local bank can help you fund this dream, but interest rates and repayment periods always need your consideration before applying for it! Find out what those will be like by researching different banks in town.
What type of home loan does Al Rajhi offer?
Al Rajhi provides 1 type of home loan, Al Rajhi Structured Home Financing-i.
What should I know before applying for a home loan?
Interest rates
You must be aware of the interest rates that the bank will charge you, either fixed interest rates or variable rates.
Type of loan
In Malaysia, there are 3 types of loans offered: term loan, semi loan, or flexi loan.
Lock-in period
Knowing the lock-in period is crucial because it often occurs when there is a sudden need for full settlement, refinancing, or selling your property.
Margin of finance
You must understand your margin of finance, which is the amount of money that a bank will allow you to borrow for your loan and how much cash/ upfront you must pay for the property.
Fees
The fees include legal fees, stamp duty charges, late payment fees, early settlement fees, and others.
Type of bank
The bank you have chosen to apply for a home loan with, as different banks offer different loan amounts, terms, etc. Choose a bank where you are comfortable applying for a home loan.
Who is eligible to apply for Al Rajhi Structured Home Financing-i?
Malaysian citizen
Between 21 to 65 years old
Minimum annual income of RM42,000
Why should I choose Al Rajhi Structured Home Financing-i?
It is a Shariah-compliant home loan that employs the Islamic concept of Commodity Murabahah
The Islamic bank may be able to finance your home purchase with a margin of up to 90%. If you want to incorporate MRTT into your loan, you will be charged an extra 5% in interest
The profit rate of the bank is set at 10%, safeguarding you against fluctuations in the Islamic Base Rate (IBR). There is also no processing fee or lock-in period, and you will be given Ibra’ for redeeming the loan before its maturity
Al Rajhi Structured Home Financing-i also has some of the finest refinance rates for homeowners wishing to refinance their mortgage. You could want to set aside some money for your children’s education or invest in new homes in a few years
Who should I contact for further information about Al Rajhi Structured Home Financing-i?
For more information or assistance with Al Rajhi Structured Home Financing-i,
Contact their Customer Service Centre at +60323326000
Visit an Al Rajhi branch nearby
What are the documents required for Al Rajhi Structured Home Financing-i?
Salaried employee
Copy of NRIC (front and back)
Latest 3-month salary slip/ Letter of Employment
Latest 3-month bank statement
Copy of Sales and Purchase Agreement/ booking receipt
Last 6-12 months’ bank statement
Valuation report (the bank must approve valuers)
Self-employed
Copy of NRIC (front and back)
Latest 6-month bank statement
Form 9, 24 and 49
Business Registration form
Copy of income tax and proof of tax payment
Copy of Sales and Purchase Agreement/ booking receipt
Last 6-12 months’ bank statement
Valuation report (the bank must approve valuers)
What are the fees included in Al Rajhi Structured Home Financing-i?
Late penalty fee
Any recovery cost, including solicitor fees
Redemption letter fee
RM10 per request
Letter for EPF withdrawal fee
RM10 per request
Early settlement fee
Subject to terms of the agreement if settled within the first 5 years
Processing fee
None
What are the common terms of home loan?
Lock-in period
A period during which you will be penalised if you pay off your home loan earlier than agreed. The fine ranges from 2% to 5% of the total amount.
Margin of Finance (MOF)
The amount of money that a bank will lend you for your loan determines how much cash you must pay upfront for the property.
Interest rates
It is the amount of money you paid to the bank in addition to the principal amount.
Valuation
An estimate of the property’s worth and the stamp duty is calculated based on its value.
Base rate
The base rate is the interest rate charged by Bank Negara Malaysia to commercial banks for loans.
Base Lending Rates (BLR)
A rate set by each bank based on the cost of borrowing the money to be lent to borrowers.
Refinancing
Repaying an existing loan and replacing it with a new one with new terms and conditions.
