Bank Islam Baiti Home Financing

An affordable mortgage with rates as low as 3.90% per annum, flexible tenures with no lock-in period and no processing fees to help you get into a new home! No penalty for early settlements.

Bank Islam Baiti Home Financing
Tenure
Up to 35 years
Profit Rate
from 3.9% p.a.
Financing type
Term islamic financing
Profit Type
Floating profit rate
Margin of finance
up to 90%
Approval in
30 days

Profit Rate

The interest paid based on the home loan amount borrowed

You borrowEstimated Profit Rate
more than RM301,0003.9% p.a.
up to RM300,0004.1% p.a.
*Effective profit rate will be determined by Bank Islam upon approval.

Requirements

Minimum Annual Income
RM24,000
Minimum Age
  • 18 to 70 years old
Who can apply
  • Malaysians

Fees & Charges

Late Penalty Fee
1% p.a. on the overdue installment(s) until date of full payment
Processing Fee
No Fee
Early Settlement Fee
No Fee
Redemption Letter Fee
RM50 per request
Letter for EPF Withdrawal Fee
RM20 per request
Insurance Types
  • MRTT
  • MLTT
  • Houseowner/Householder Takaful

More Information

How does this mortgage work?

Bank Islam Baiti Home Financing is based on the principle of Tawarruq (Commodity Murabahah). Tawarruq defines the purchase of an asset with a deferred price, and then selling that asset to a third party to get cash.

Subject to credit check and approval, Bank Islam will be able to finance up to 90% of the value of your new house, whether complete or under construction.

Here are the rates and the eligible property value for your reference.

Property ValueProfit Rate
RM300,000 and belowStandardised Base Rate (SBR) 3.00% p.a. + 1.10% p.a. = 4.10% p.a. effective profit rate
Above RM300,000Standardised Base Rate (SBR) 3.00% p.a. + 0.90% p.a. = 3.90% p.a. effective profit rate

What are my monthly commitments?

Your monthly instalments will consist of the principal amount and profit rate, which is floating. The implication is that your monthly instalment amount will vary if the bank's Base Rate changes.

Thankfully, the profit rate is capped to a limit so that you can hedge any sudden hikes in the Islamic Base Rate that might result in higher repayments. Bank Islam also offers a fixed multi-tier home loan in this financing package. 

You can enjoy a low-interest rate for the first year, increasing incrementally for subsequent years. Be reminded that if you are unable to service your repayments, it would be wise to contact Bank Islam to negotiate an alternative for payments and avoid foreclosure.

Do I need any house Takaful coverage?

You must take up the Mortgage Reducing Term Takaful (MRTT) or the Mortgage Level Term Takaful (MLTT) should the unexpected occur, resulting in you being incapable of servicing your home instalments. Takaful coverage will also have your back in the event of your death or Total Permanent Disability (TPD). 

You also have the option to subscribe to a Houseowner/Householder Takaful Plan if required. Bank Islam should be able to assist you with this if you need further details.

What documents do I need to make a home loan application?

Salaried employee:

  • NRIC photocopy
  • Sales and Purchase Agreement
  • Latest 3 months salary slips
  • Latest 3 months salary crediting account statements
  • Employer's confirmation letter
  • Annual income statement/ BE form/ EPF statement
  • Any other supporting income document

Self-employed:

  • NRIC photocopy
  • Company/ Business registration
  • Latest 6 months bank statement
  • Latest 3 years financial statement
  • Latest B Form
  • Any other supporting income document
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