Islamic home financing (financing-i)
Islamic home financing is structured under a Shariah contract instead of a loan with interest. The most common is Tawarruq (commodity murabahah); others include Musharakah Mutanaqisah (diminishing partnership) and Ijarah (lease).
Most packages charge a floating effective profit rate under a fixed ceiling profit rate written into the contract, and give a rebate (ibra) on deferred profit if you settle early. Islamic financing is open to non-Muslims too.
- Packages
- 46
- Banks
- 19
- Lowest published rate
- 3.55%
- Base rate (SBR)
- 2.75%
| Bank / package | Rate | Lock-in | Margin |
|---|---|---|---|
| Bank IslamBaiti Home Financing-iIslamic | 3.55%As low as SBR + 0.80% | None | 90% |
| Bank IslamWahdah Home Refinancing-iIslamic | 3.55%As low as SBR + 0.80% | None | 90% |
| Al Rajhi Bank MalaysiaHome Financing-iIslamic | 3.65%As low as SBR + 0.90%; ceiling 10% | None | 90% |
| BSNBSN MyHome-iIslamicSemi flexi | 3.65%From SBR + 0.90% (tiered by amount) | None | 95% |
| Bank RakyatHome Financing-i My 1st HomeIslamic | 4.10%SBR + 1.35% | — | 110% |
| Alliance BankAlliance FlexLink Home Financing-iIslamicFull flexi | 4.11%SBR + 1.36% (bank example) | — | 90% |
| Bank RakyatHome Financing-iIslamicTerm (non-flexi) | 4.20%SBR + 1.45% (RM300k and above) | None | 95% |
| Bank RakyatHome Mortgage Suite-iIslamicTerm (non-flexi) | 4.20%SBR + 1.45% (RM300k and above) | None | 120% |
| Kuwait Finance House MalaysiaIjarah Muntahiah Bi Tamlik Home Financing-iIslamic | 4.20%SBR + 1.45% (refinance, PDS); ceiling 12% | None | 95% |
| MBSB BankStandard Home Financing-iIslamic | 4.20%Indicative effective rate (bank example); ceiling 11% | None | 90% |
| MBSB BankUltimate Home Financing-iIslamic | 4.20%Indicative effective rate (bank example); ceiling 11% | None | 90% |
| Bank RakyatHome Financing-i FlexiIslamicSemi flexi | 4.25%SBR + 1.50% (RM300k and above) | None | 95% |
| Affin BankAFFIN Home Flexi Plus-iIslamicSemi flexi | 4.30%SBR + 1.55% (PDS illustration) | None | 90% |
| Affin BankAFFIN Home Invest-iIslamicSemi flexi | 4.30%SBR + 1.55% (PDS illustration); ceiling 10% | None | 90% |
| Affin BankAFFIN Home Step Fast-iIslamicSemi flexi | 4.30%SBR + 1.55% (PDS illustration) | None | 90% |
Bank Islam
Baiti Home Financing-i3.55%
Islamic· Lock-in None · Margin 90%
Bank Islam
Wahdah Home Refinancing-i3.55%
Islamic· Lock-in None · Margin 90%
Al Rajhi Bank Malaysia
Home Financing-i3.65%
Islamic· Lock-in None · Margin 90%
BSN
BSN MyHome-i3.65%
IslamicSemi flexi· Lock-in None · Margin 95%
Bank Rakyat
Home Financing-i My 1st Home4.10%
Islamic· Lock-in — · Margin 110%
Alliance Bank
Alliance FlexLink Home Financing-i4.11%
IslamicFull flexi· Lock-in — · Margin 90%
Bank Rakyat
Home Financing-i4.20%
IslamicTerm (non-flexi)· Lock-in None · Margin 95%
Bank Rakyat
Home Mortgage Suite-i4.20%
IslamicTerm (non-flexi)· Lock-in None · Margin 120%
Kuwait Finance House Malaysia
Ijarah Muntahiah Bi Tamlik Home Financing-i4.20%
Islamic· Lock-in None · Margin 95%
MBSB Bank
Standard Home Financing-i4.20%
Islamic· Lock-in None · Margin 90%
MBSB Bank
Ultimate Home Financing-i4.20%
Islamic· Lock-in None · Margin 90%
Bank Rakyat
Home Financing-i Flexi4.25%
IslamicSemi flexi· Lock-in None · Margin 95%
Affin Bank
AFFIN Home Flexi Plus-i4.30%
IslamicSemi flexi· Lock-in None · Margin 90%
Affin Bank
AFFIN Home Invest-i4.30%
IslamicSemi flexi· Lock-in None · Margin 90%
Affin Bank
AFFIN Home Step Fast-i4.30%
IslamicSemi flexi· Lock-in None · Margin 90%
Rates are the figures each bank publishes; “On request” means it doesn’t publish one. Estimate only — the bank decides the final rate and approval.
Rates shown are the examples or “as low as” figures each bank publishes on its product page or Product Disclosure Sheet; “On request” means the bank doesn’t publish one. Your actual rate depends on your profile, loan size and lock-in, and is set when you’re approved.Checked 22 October 2026. EstateBuds doesn’t give financial advice; confirm terms with the bank before applying.
Questions people ask
Which banks offer islamic home financing (financing-i)?
19 banks: Bank Islam, Al Rajhi Bank Malaysia, BSN, Bank Rakyat, Alliance Bank, Kuwait Finance House Malaysia, MBSB Bank, Affin Bank, Bank Muamalat, UOB Malaysia, OCBC Malaysia, HSBC Malaysia, Agrobank, AmBank, CIMB, Hong Leong Bank, Maybank, RHB, Standard Chartered Malaysia.
What is the lowest published rate for islamic home financing (financing-i)?
3.55% for Bank Islam Baiti Home Financing-i (As low as SBR + 0.80%). 15 of 46 packages don’t publish a rate.
Is Islamic home financing cheaper than a conventional loan?
Not necessarily. Both are priced off the bank’s Standard Base Rate plus a spread, so the effective rates are often close. Compare the effective rate, fees and lock-in, not the label.
What is a ceiling profit rate?
The maximum rate you can ever be charged under the contract. Your actual (effective) profit rate floats with the base rate below that ceiling.
Can non-Muslims take Islamic home financing?
Yes. Islamic financing in Malaysia is open to all eligible customers.