Bank Islam Wahdah Home Financing

A remortgage plan based on the Islamic concept of Tawarruq with a capped interest rate and tiered financing to help you lower your home monthly instalments.

Bank Islam Wahdah 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 Wahdah Home Financing work?

Bank Islam Wahdah Home Financing adheres to the set rules of Tawarruq (Commodity Murabahah). Tawarruq is the act of buying an asset with a deferred price and subsequently selling it to a third party to get cash.

Bank Islam can finance up to 90% of the value of the completed property for tenures as long as 35 years or up until 70 years old, whichever is earlier. But of course, it all entirely depends on your creditworthiness and Bank Islam's approval.

This loan is applicable only for completed property and strictly for refinancing purposes only. So if you're thinking about jumping ship to another bank, maybe this mortgage is a good place to start.

Here are the profit 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 obligations?

As with any Islamic home loan your monthly instalments are calculated based on the Profit Rate, which in turn is determined by the Islamic Base Rate (IBR). Luckily for you, the profit rate is capped at a ceiling rate to hedge you from any sudden hikes in the IBR.

Bank Islam can offer you a choice of fixed-tier financing periods for your completed property. For the first couple of years, you can enjoy a low-interest rate, which will increase in the subsequent years. 

This might be a big help for folks struggling to cope with the cost of repairs or refurbishments when refinancing.

Do I need Takaful coverage?

By taking up MRTT or MLTT takaful, you will be covered should any unexpected event occur. In the event of your death or Total Permanent Disability (TPD), the said Takaful coverage will pay the reduced sum covered as per schedule. 

You also have the option to subscribe to the Houseowner/Householder Takaful Plan. Fire insurance, on the other hand, is compulsory for most mortgages. Bank Islam should be able to furnish you with more details if you require it.

What documents are needed when applying?

This is a complete list of acceptable income documents to be used when applying for the Bank Islam Wahdah Home Financing with your loan officer:

Salaried applicant:

  • 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 applicant:

  • 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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