Bank Islam Baiti Home Financing

An affordable mortgage based on the Islamic concept of Tawarruq with low interest rate, flexible tenures and payment holiday to help you get into a new home

Bank Islam Baiti Home Financing
Up to 35 years
Profit Rate
from 4.57% 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 RM350,0004.57% p.a.
*Effective profit rate will be determined by Bank Islam upon approval.


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

Fees & Charges

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

More Information

How does this mortgage work?

Bank Islam Baiti Home Financing is based on the principle of Tawarruq (Commodity Murabahah). Tawarruq is defines the purchase of an asset with deferred price, 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. 

As opposed to other loans, for a property in some residential projects that are under construction you can enjoy Payment Holiday every November and December.

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 IBR that might result in higher repayments. Bank Islam also offer a fixed multi-tier home loan in this financing package. 

You can enjoy 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?

It is compulsory for you to take up Mortgage Reducing Term Takaful (MRTT) should the unexpected occur, resulting you 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 have an option to subscribe to Long Term Houseowner Takaful (LTHT).

What can I gain from Baiti Home Financing?

  • Greater flexibility - you have the option to defer the payment of two monthly installments with a Payment Holiday every November and December.
  • Enjoy No Payment During Construction for up to two years for selected residential projects
  • Better costs savings with the exclusion of a processing fee and 20% discount on Stamp Duty for Perfecting The Bank’s Securities Documentation

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 slips crediting account statements
  • Employer's confirmation letter
  • Annual income statement/ BE form/ EPF statement


  • NRIC photocopy
  • Company/Business registration
  • Latest 6 months bank statement
  • Latest 3 years financial statement
  • Latest Borang B
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