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.
