Bank Rakyat is Malaysia’s most prominent Islamic cooperative bank, offering a wide range of financial products and services, including consumer banking, commercial financing, savings and investments, and financial planning products. Due to the expansion, Bank Rakyat currently has 147 branches, over 960 automated teller machines (ATMs) and cash deposit machines (CDMs), and 95 Ar-Rahnu X’Change across the country.
What is a home loan?
A home loan is a sum of money that you apply for or borrow from a bank to assist you in purchasing your dream home. Each loan will be charged an interest rate determined by the loan amount and the repayment period. So, keep in mind that each bank will have a different interest rate, and you should do some research before applying for a home loan.
What type of home loan does Bank Rakyat offer?
Bank Rakyat provides 5 types of home loans:
Home Financing-i
Home Financing-i Zero Entry Cost
Home Financing-i (Shophouse / Commercial)
Home Financing-i SJKP
Home Financing-i My 1st 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 Rakyat home loans?
Home Financing-i
Above 18 years old (Not more than 70 years old at the end of financing tenure)
Not going bankrupt
No negative records with any other banks or financial institutions
Joint application is allowed (family members)
Home Financing-i Zero Entry Cost & Home Financing-i (Shophouse / Commercial)
Malaysian citizen
Above 18 years old (Not more than 70 years old at the end of financing tenure)
Not going bankrupt
No negative records with any other banks or financial institutions
Joint application is allowed (family members)
Home Financing-i SJKP
Malaysian citizen
Between 18 to 65 years old
Fixed income earner/ non-fixed income earner/ business owner
First home purchase and inhabited
Live within an area of 20KM from the bank branch when the application is made (unless permission is obtained from SJKP)
Minimum monthly income of RM1,000
Joint application is allowed (family members, if both applicants do not own a home)
Home Financing-i My 1st Home Scheme
Malaysia citizen
First-time home buyer
Individual or joint application is allowed
Why should I choose Bank Rakyat home loans?
It provides a variety of home loan financing options to suit your needs
Shariah-compliant, based on Murabahah (by adopting Tawarruq practices)
Financing up to 95% including MRTT/ legal fees/ valuation fees*
Legal fees, valuation costs, and stamp duty to be borne by the bank up to 2.5% (if approved by the bank)*
Loan tenure is up to 35 years or up to age 65, whichever is earlier
*Depending on the selected home loan.
Who should I contact for further information about Bank Rakyat home loans?
For more information or assistance with Bank Rakyat home loans,
Contact Bank Rakyat at 1-300-80-5454
Email them at telerakyat@bankrakyat.com.my
Visit a Bank Rakyat branch near you
What are the documents required for Bank Rakyat home loans?
Home Financing-I, Home Financing-i Zero Entry Cost, Home Financing-i (Shophouse / Commercial) & Home Financing-i SJKP
Fixed income earner
Copy of NRIC or authority card (police/ military)
Latest 3-month salary slip
Latest 3-month bank statement
Latest EPF statement/ EA form
Confirmation letter of employment
Sale and Purchase Agreement
Copy of Title
Offer to Purchase from Developer
Booking receipt
Memorandum of Sale: Auction
Valuation report: Completed/ auction/ subsale/ refinancing/ construction of house
Non-fixed income earner
Copy of NRIC or authority card (police/ military)
Latest 6-month bank statement (individual/ business)
Business Registration/ Form 24 or 49
B Form with payment receipt
Sale and Purchase Agreement
Copy of Title
Offer to Purchase from Developer
Booking receipt
Memorandum of Sale: Auction
Valuation report: Completed/ auction/ subsale/ refinancing/ construction of house
Home Financing-i My 1st Home Scheme
Copy of NRIC or authority card (police/ military)
Latest 3-month salary slip
Latest 3-month bank statement
Latest EPF statement/ EA form
Confirmation letter of employment
Sale and Purchase Agreement
Copy of Title
Offer to Purchase from Developer
Booking receipt
Memorandum of Sale: Auction
Valuation report: Completed/ auction/ subsale/ refinancing/ construction of house
What are the fees included in Bank Rakyat home loans?
Wakalah fee
RM28.50.
Stamp duty
0.5% of the total amount.
Late payment fee
1% of the amount in arrears.
Early settlement fee
2.5% of the total financing (Zero Entry Cost package).
Redemption fee
RM50.
Redemption letter fee
RM50 per request.
Letter for EPF withdrawal fee
RM15 per document.
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.
