Bank Muamalat Home Loan

About Bank Muamalat

Bank Muamalat is the leading Islamic bank that provides a wide range of services to individuals and institutions. Deposit accounts, asset management, home and personal use, general Takaful, investments, and other related products are some of the financial products offered by Bank Muamalat. Besides that, Bank Muamalat also has a nationwide presence through a network of 67 branches and electronic channels encompassing i-Muamalat (the bank’s internet banking solution) and Self-Service Terminals (SST) available at nearly 141 locations.

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 Muamalat offer?

Bank Muamalat provides 3 types of home loans:

  • Home Financing-i
    • SMART Mortgage HOME
    • SMART Mortgage EEP
    • SMART Mortgage FLEXI
    • SMART Mortgage Solution
    • SMART Mortgage SJKP
    • SMART Mortgage SRP (Skim Rumah Pertamaku)
    • SMART Mortgage WAQF
    • SMART Mortgage Professionals
  • Shophouse Financing-i
  • Land 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 Bank Muamalat home loans?

  • SMART Mortgage HOME, SMART Mortgage EEP, SMART Mortgage FLEXI, SMART Mortgage Solution, Shophouse Financing-i & Land Financing-i
    • Eligible for all individual and joint applicants
  • SMART Mortgage SJKP
    • Eligible for all individual and joint applicants.
    • Fixed-income earners, non-fixed income earners, and self-employed
    • Must be first-time house buyers
  • SMART Mortgage SRP (Skim Rumah Pertamaku)
    • Eligible for all individual and joint applicants
    • Salaried employees or self-employed
    • No evidence of impaired financing in the last 12 months
    • Purchase price of a property up to RM500,000
    • Maximum monthly gross household income:
      • Individual: RM5,000
      • Joint: RM10,000
  • SMART Mortgage WAQF
    • Eligible for all individual and joint applicants
    • For properties built on Waqf land by selected and qualified developers/ projects
  • SMART Mortgage Professionals
    • Eligible for Registered member of the said profession’s professional body or equivalent related qualification and accreditation

Why should I choose Bank Muamalat home loans?

  • Enjoy a financing tenure period of up to 35 years or upon age 70, whichever is earlier*
  • Shariah compliance is applied to Bank Muamalat home loans
  • Have the accessibility to redraw any amount from your excess payments and get the money right away*
  • Enjoy a margin of financing that is up to 90% + 10% MCRE*
  • Enjoy Moving Costs and Related Expenses (MCRE), including MRTT/ LTHT, legal fees, valuation fees, and stamp duty

*Depending on the selected home loan.

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

For more information or assistance with Bank Muamalat home loans, contact Customer Care at +0326005500, browse Bank Muamalat’s official website or visit the nearest Bank Muamalat branch.

What are the documents required for Bank Muamalat home loans?

  • SMART Mortgage HOME, SMART Mortgage EEP, SMART Mortgage FLEXI, SMART Mortgage Solution, Shophouse Financing-i & Land Financing-i
    • Copy of NRIC
    • Latest 3-month salary slip
    • Latest J/ EA Form
    • Confirmation letter from employer
    • Original Sales and Purchase Agreement/ booking sheet/ down payment receipt
    • Business Registration and other related forms for self-employed (whichever is applicable)
    • Latest 3-month bank statement
    • Any additional documents, if required by the bank
  • SMART Mortgage EEP
    • Copy of NRIC
    • Latest 1-month salary slip
    • Latest 3-month bank statement
    • Latest J/ EA Form
    • Confirmation letter from employer
    • Original Sales and Purchase Agreement/ booking sheet/ down payment receipt
    • Letter of “Akujanji Kebenaran Potongan Gaji/Pindahan Gaji”
    • Any additional documents, if required by the bank
  • SMART Mortgage SJKP
    • You can refer here for information on the documents required.
  • SMART Mortgage Professionals
    • Copy of NRIC
    • Latest 3-month salary slip
    • Latest J/ EA Form
    • Confirmation letter from employer
    • Original Sales and Purchase Agreement/ booking sheet/ down payment receipt
    • Business Registration and other related forms for self-employed (whichever is applicable)
    • Latest 3-month bank statement
    • Latest income tax/ audited financial accounts/ latest 6-month business bank statement (whichever is applicable)
    • Any additional documents, if required by the bank

What are the fees included in Bank Muamalat home loans?

  • Stamp duty

    As per Stamp Duty Act 1949 (Revised 1989)

  • Mortgage account statement

    RM10 per extraction

  • Late payment fee

    1% of the amount in arrears (Ta`widh-compensation)

  • Processing fee

    Waived (depending on selected home loan)

  • Letter for EPF withdrawal fee

    RM10 per request

  • Legal fee

    Based on selected home loan (if any)

  • Disbursement fee

    Based on selected home loan (if any)

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.