What is the MBSB Property Refinancing-i & Remortgage-i?
MBSB Bank's Property Refinancing-i and Remortgage-i is a Shariah-compliant home financing facility for property owners who want to either switch their existing home loan from another bank, or borrow against a property they already fully own.
Both variants are structured under the Tawarruq (commodity Murabahah) concept, a widely-used Islamic financing arrangement in Malaysia that eliminates compounding of profit and other charges.
What is the difference between Refinancing-i and Remortgage-i?
Refinancing-i is for borrowers with an existing mortgage at another financial institution. You switch your outstanding balance to MBSB, with the option to take out a cash-out top-up on top of the redemption sum, subject to the margin of financing limit.
Remortgage-i is for property owners whose home is fully paid up and free from any existing charge. You use the unencumbered property as security to access a new financing facility for purposes such as working capital, education, or renovation.
How much can you borrow?
For individual applicants, MBSB finances up to 90% of the property's Open Market Value (OMV) or purchase price, whichever is lower. On top of this basic amount, up to an additional 5% is available to cover incidental costs such as your Mortgage Reducing Term Takaful (MRTT) contribution, legal fees, and valuation fees. Non-individual applicants are subject to a basic margin of 80% of the OMV.
What is the profit rate?
The profit rate is variable and pegged to MBSB Bank's Standardised Base Rate (SBR), which currently stands at 2.75% p.a. (effective 17 July 2025). Your effective profit rate is determined at the point of offer based on your credit assessment.
The rate is capped at a Ceiling Profit Rate of 11% p.a. for the full duration of the facility, so it will never exceed this regardless of SBR movements. MBSB is required to notify you at least 7 days in advance before any rate change takes effect.
How long is the tenure?
Individual applicants can take up to 35 years, provided the financing ends before you turn 75. Non-individual borrowers are capped at 20 years, or until the major shareholder, director, or key person reaches age 70, whichever comes first.
What fees should you know about?
The processing fee is currently waived. There is also no early settlement fee when you settle before the end of the tenure, MBSB grants an Ibra' (rebate) on the unearned portion of profit. This means you are not penalised for paying off early. The Ibra' calculation is set out in the Product Disclosure Sheet (PDS).
If a payment is missed, a late payment compensation (Ta'widh) of 1% p.a. is charged on the overdue outstanding amount during the facility tenure. After maturity, the charge defaults to no more than the prevailing daily overnight IIMM rate.
For administrative requests, MBSB charges RM50 per redemption letter and RM50 per EPF withdrawal letter.
What costs can be rolled into the financing?
The 5% incidental financing allowance on top of the basic margin can cover your MRTT contribution, valuation fees, and legal fees. For Refinancing-i cases, the financing amount also covers the redemption sum or outstanding balance owed to your existing bank.
Am I eligible?
Malaysian citizens aged 18 and above are eligible to apply. Non-residents may also apply with additional documentation, including a work permit and passport. The financing must end before you turn 75. If you are above 55 years old, you may be required to apply with a joint applicant — limited to a spouse, parent, child, or sibling.
Both salaried employees and self-employed individuals are eligible, subject to MBSB's credit assessment on your DSR, CCRIS, and income documents.
What documents do you need?
Salaried applicants:
- Photocopy of MyKad/passport and work permit (non-residents)
- Latest BE Form and Tax Receipt or EA Form
- Latest 3 months' salary slips
- Latest 3 months' savings or current account statements showing salary crediting
- Letter of employment
- Latest EPF statement
- Sale and Purchase Agreement (where applicable)
Self-employed applicants:
- Photocopy of MyKad/passport (and director's identification if applicable)
- Business Registration / Form 9, 24, 49, B&D or M&A
- Latest B Form and Tax Receipt
- Latest 6 months' current account statements (company and personal)
- Latest 3 years' P&L accounts, audited or management accounts
- Sale and Purchase Agreement (where applicable)
Can you use EPF savings to reduce your outstanding balance?
Yes. EPF members can apply to withdraw from Akaun Sejahtera (Account 2) to reduce or fully redeem their property financing balance. MBSB charges RM50 per EPF withdrawal letter, which you will need as a supporting document for your EPF application.
How do you apply?
You can apply at any MBSB Bank branch nationwide. An online enquiry form and monthly instalment calculator are also available at www.mbsbbank.com. For Refinancing-i, bring your existing bank's latest redemption statement. For Remortgage-i, a recent valuation report on your property will be needed.
