• Bank Islam Housing Loan

    Bank Islam Home Loan

    Bank Islam is a highly popular bank in Malaysia. The bank extends an all-inclusive array of banking solutions such as deposits, cards, financing products, wealth management, Bancatakaful, and lots more! You can approach the bank for excellent financing products to fund your specific needs.

    If you are interested in buying a house by adhering to the Shariah principles of Islamic banking laws, you should definitely choose this bank’s property financing products.


    You’re probably eligible for an Bank Islam Home Loan if you are

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    Bank Islam Home Loan Minimum Age

    At least 18 years old

     Bank Islam Home Loan Maximum Age

    Less than 70 years old

    Bank Islam Home Loan Eligible Employment Type

    Salaried / Self-employed
    with regular income

    Bank Islam Home Loan Minimum Income

    Earn more than the minimum
    income required


    Your Bank Islam Home Loan amount eligibility is based on these factors

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    Bank Islam Home Loan Minimum Salary

    Instalment limited to about 50%
    of monthly income

    Bank Islam Home Loan Maximum Loan to property value

    Loan capped @ 90% of property value + 5% MRTA

    Bank Islam Home Loan EMI

    Instalments of other loans lower
    your eligibility


    Increase your eligible Bank Islam Home Loan amount by these steps

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    Bank Islam Home Loan Add Spouse as Co-applicant

    Make your spouse a co-applicant,
    and her income will add
    to your eligibility

    Bank Islam Home Loan Maximum Tenure

    Choose longer tenure loan up to 35 years

    Bank Islam Home Loan Add parents as Co-applicant

    Alternatively add your parents


    Documentation needed to apply for an Bank Islam Home Loan

    • 1. Photocopy of NRIC
    • 2. Booking Receipt from Developer (for under construction properties)
    • 3. A copy of valuation report obtained from Bank’s approved panel of valuers (if required).
    • 4. To substantiate additional income documents (if applicable)
    • 5. Documentation for salaried applicants:
      • Latest 3 months pay slips/ salary vouchers
      • Latest EPF Statement
      • Latest 6 months commission statements where commission is credited
      • Letter from employer to confirm on applicant’s income
    • 6. Documentation for self-employed applicants:

      • Latest Borang B supported by tax payment receipt or E-Filing supported by acknowledgement.
      • Latest 6 months business account statements (Sole Proprietorship/ Partnership)
      • Latest 6 months personal account statements (Limited Company/ Sdn Bhd)
      • Latest Profit & Loss account or Management account.

    Bank Islam Home Loan Interest RatesUpdated on 25 Jun 2017

    Bank Islam Home Loan Details
    Margin of Finance Up to 90%
    Tenure 35 years
    Guarantor Requirement No Guarantee Required

    Features and benefits of Bank Islam home financing-i

    These are the salient features and benefits of Bank Islam home financing-i:

    • You can enjoy a very high margin of financing of up to 90%.
    • The financing period will range for up to 35 years or until you turn 70, whichever is earlier.
    • You can procure this financing for funding your legal fees, stamp duty, valuation fees, Long Term House Takaful (LTHT), and Mortgage Reducing Term Takaful (MRTT).
    • The financing rates for these products are very affordable and competitively priced.
    • You can earn great savings when you choose this bank’s home financing product as you do not have to pay any processing fee. You will also get a discount of 20% on your stamp duty that you will have to pay for the documentation process.
    • Bank Islam offers both home financing and home refinancing options.

    Types of Bank Islam home financing-i schemes

    Let us take a look at some of the kinds of Islamic home financing schemes offered by Bank Islam:

    1. Bank Islam Property Financing-i (Tawarruq) – Baiti Home Financing: This home financing is absolutely compliant with the Shariah principles of Islamic banking laws. Your margin of financing will be up to 90%. You can take this financing along with Long Term House Takaful (LTHT) and Mortgage Reducing Term Takaful (MRTT).
    2. Bank Islam SJKP Housing Scheme: This financing option is offered by Bank Islam in order to help an individual buy a house that costs up to RM150,000. It is given for houses whose costs are low or medium. The margin of financing is great for this product as you will get up to 100% and it also gives you Takaful. You will receive financing up to RM300,000.
    3. Bank Islam “My First Home Scheme”: This financing option enables an individual to buy his or her first house. The value of the living space should be between RM100,000 and RM500,000. The margin of financing will be up to 100% against the SPA or OMV, whichever is lower and 5% for LTHT and MRTT. You will have to repay this financing within 35 years or before you turn 65.
    4. Bank Islam PR1MA: Bank Islam provides specific financing for Project under PR1MA to individuals who are eligible. You can visit any Bank Islam branch to get full details about this form of financing.
    5. Bank Islam Property Financing-i (Tawarruq) – Wahdah Home Refinancing: If you are wondering how to pay lower monthly installments for your home financing, you can go for the bank’s refinancing product. This product will also let you make savings on your funds which you can later use for other requirements. The margin of financing will be up to 90%. It is offered at competitive financing rates.

    Interest rates

    The interest rates for the various Bank Islam home financing-I schemes will be determined by the prevailing base rate. This consists of Statutory Reserve Requirement (SRR) cost and the bank’s benchmark Cost Of Funds (COF). The SRR cost is enforced by Bank Negara Malaysia.

    Fees and charges

    These are the fees and charges for Bank Islam home financing-i:

    Late payment fee (Ta’widh) 1% p.a. of the unsettled amounts
    Request for EPF withdrawal (when you apply manually) RM21.20 for each request
    Request for EPF withdrawal (when you apply online)  
    Request for redemption statement RM53.00 for each request
    Agency fee (This is waived for now). RM25.00
    Custodian fee for protecting security documents for financing that is completely settled RM84.80 p.a.
    Request for photocopy of documents including Title and Deed of Assignment, Letter of Offer, S&P RM53.00 for each set of documents

    Eligibility criteria

    You will have to meet the following eligibility criteria in order to apply for Bank Islam home financing-i:

    • You will have to be a Malaysian citizen.
    • You should be at least 18 years old and more than 70 years old.
    • You should not be bankrupt.
    • For SJKP Housing Scheme, your monthly income should be higher than RM1,000 whether you are a fixed income earner or a non-fixed income earner.
    • For the “My First Home Scheme”, you should not be more than 40 years old. This financing is mainly designed for young adults. You should be buying your first house with this option. If you are a joint customer, your income should not be higher than RM10,000. If you are a single customer, your income should not be higher than RM5,000. Whether you are a single or a joint customer, an individual borrower’s income should not be above RM5,000.

    How to apply for Bank Islam home financing-i

    You can apply for home financing from Bank Islam by filling the enquiry form available online. You will then be contacted by a representative from the bank to help you choose the right financing product. You may also call the bank at 03-26 900 900 for assistance.

    How to make monthly installment payments

    You can make monthly installment payments by signing into the electronic banking platform of the bank.

    Documents required

    You will have to submit the following documents while applying for Bank Islam home financing-i:

    • A copy of your identity card
    • A copy of Title Deed
    • Most recent salary slips for 3 months
    • Sales and Purchasing agreement
    • Most recent salary crediting account statements
    • Annual Income statement or EPF Statement or BE form
    • Employer’s confirmation letter

    FAQs

    1. Could you tell me the Shariah concept that is applied in Bank Islam home financing-i?

      The Shariah concept that is applied in Bank Islam home financing-i is Tawarruq.

    2. Is there a lock-in period for any of the schemes offered under Bank Islam home financing-i?

      No, the bank does not offer a lock-in period for the home financing.

    3. How does the bank determine the sale price of the property that is funded by Bank Islam home financing-i?

      The bank determines the sale price by looking at the Ceiling Profit Rate (CPR). This rate will remain the same for the entire financing tenure.

    4. Will I have to pay Stamp Duties for taking Bank Islam home financing-i?

      Yes, you will have to pay Stamp Duties to take this financing. It will be according to the Stamp Duty Act 1949 (Revised 1989).

    5. For Bank Islam home financing-i, will the effective profit rate (EPR) be computed on a variable or fixed rate?

      The effective profit rate (EPR) will be computed according to a variable rate.

    6. What is the payment holiday offered by Bank Islam home financing-i?

      When you go for this option, you will not have to pay your monthly installment amount during November and December. This way, you will have additional money during these 2 months.

    7. Who can apply for Payment Holiday?

      Any borrower with a Bank Islam Home Financing or Refinancing product who follows the floating rate can apply for Payment Holiday.

    Other Products offered by Bank Islam:

    Apart from offering Home Loan,Bank Islam offers other products and services which include:

    News About Bank Islam Home Loan

    • Bank Islam TAP-i Introduces Income Tax Payment Feature

      Bank Islam Malaysia Bhd is estimating its TAP (Transact-at-Palm) Mobile Banking-i (TAP-i) service to help contribute 6% to its fee-based income for the year with the launch of the country’s first on-the-go payment of income tax via mobile phones.

      Datuk Seri Zukri Samat, MD mentioned that from the TAP-i service grew 35.6% to slightly over RM7 million last year from 2014.

      Zukri also said, “This (RM7 million) represents about 5% of our fee-based income. We are targeting slightly more now,” to the reporters at the signing of a strategic business collaboration agreement with the Inland Revenue Board of Malaysia (LHDN) yesterday.

      Yesterday, the bank announced the expansion of its mobile banking services to include income tax payment. Under the agreement with LHDN, TAP-i subscribers will be able to pay their income tax via their mobile phones.

      Zukri also added, “TAP-i is unique as it enables users to perform electronic transactions without the need of internet.”

      21st April 2016

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