Bank Islam is Malaysia’s leading and pioneering Islamic bank, bringing a unique perspective to the financial landscape and a commitment to responsible growth and progress. Aside from that, Bank Islam also provides a wide range of financial services from consumer banking and business banking to customers while adhering to Shariah principles and rules. In Malaysia, Bank Islam currently has 147 branches and over 1200 self-service terminals.
Home loans are one of the most common loans given for purchasing homes. They are offered by banks, mortgage companies, and other financial institutions to help an individual purchase a property with ease.
Bank Islam provides 3 types of home loans:
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.
*Depending on the selected home loan.
For more information or assistance with Bank Islam home loans, you can contact
As per Stamp Duty Act 1949 (Revised 1989)
Late payment fee
1% of the amount in arrears
Fees for charge registration and other related charges are included
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.
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