Bank Islam Home Loan

About Bank Islam

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.

What is a home loan?

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.

What type of home loan does Bank Islam offer?

Bank Islam provides 3 types of home loans:

• Baiti Home Financing-i
• Wahdah Home Refinancing-i
• Skim Rumah Pertamaku (SRP) – (My First Home Scheme)

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 Bank Islam home loans?

• Baiti Home Financing-i & Wahdah Home Refinancing-i
  • Malaysian citizen
  • 18 years and above
  • Not bankrupt or not the subject of any legal proceedings
  • Employed or run a profitable business of at least 3 years
  • A good payment track record of at least 1 year

• Skim Rumah Pertamaku (SRP) – (My First Home Scheme)
  • Malaysian citizen
  • 18 years and above
  • First-time homebuyer
  • Salaried employee (civil servants shall also be eligible)
  • Maximum monthly gross household income:
    • Individual: RM5,000
    • Joint: RM10,000
  • No record of impairment in the last 12 months in CCH
  • To finish the online financial education module offered by AKPK at here.

Why should I choose Bank Islam home loans?

• It provides a variety of home loan financing options to suit your needs
• Bank Islam provides a Shariah-compliant home loan based on Tawarruq (consists of two sale and purchase contracts)
• Enjoy financing tenure period up to 35 years or upon age 70, whichever is earlier
• Enjoy margin of financing up to 90% (exclusive of certain elements)*
• Profit Rate as low as BR + 0.38% p.a.*
• No lock-in period, no compounding elements, and no processing fee will be charged

*Depending on the selected home loan.

Who should I contact for further information about Bank Islam home loans?

For more information or assistance with Bank Islam home loans, you can contact

• Call Center at +603269009000
• Email contactcenter@bankislam.com.my
• Visit the nearest Bank Islam branch

What are the documents required for Bank Islam home loans?

• Baiti Home Financing-i & Wahdah Home Refinancing-i
  • Salaried employee
    • Copy of NRIC
    • Sales and Purchase Agreement
    • Latest 3-month salary slip
    • Latest 3-month salary crediting account statement
    • Employer’s confirmation letter
    • Annual income statement/ BE Form/ EPF statement
    • Any other supporting income documents
  • Self-employed
    • Copy of NRIC
    • Sales and Purchase Agreement
    • Company/ Business Registration
    • Latest 6-month bank statement
    • Latest 3-year financial statement
    • Latest B Form
    • Any other supporting income documents

• Skim Rumah Pertamaku (SRP) – (My First Home Scheme)
  • Copy of NRIC
  • Sales and Purchase Agreement
  • Latest 3-month salary slip
  • Latest 3-month salary crediting account statement
  • Employer’s confirmation letter
  • Annual income statement/ BE Form/ EPF statement
  • Any other supporting income documents

What are the fees included in Bank Islam home loans?

• Stamp duty

  As per Stamp Duty Act 1949 (Revised 1989)

• Wakalah fee

  RM25

• Late payment fee

  1% of the amount in arrears

• Processing fee

  Waived

• Disbursement fee

  Fees for charge registration and other related charges are included

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.