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.
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.
Al Rajhi provides 1 type of home loan, Al Rajhi Structured Home Financing-i.
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.
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.
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.
For more information or assistance with 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
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.
It is the amount of money you paid to the bank in addition to the principal amount.
An estimate of the property’s worth and the stamp duty is calculated based on its value.
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.
Repaying an existing loan and replacing it with a new one with new terms and conditions.