Bank Muamalat specialises in offering both consumer banking and business banking services in Malaysia. You can get in touch with this bank to get mortgages, deposits, vehicle financing, Islamic hire purchase, wealth management, etc.
The bank gives outstanding home financing options that are compliant with the Shariah concept of Islamic banking principles. The bank offers mortgages that follow this concept with 3 different categories.
You’re probably eligible for an Bank Muamalat Home Loan if you are
At least 21 years old
Less than 70 years old
Salaried / Self-employed
with regular income
Earn more than the minimum
Your Bank Muamalat Home Loan amount eligibility is based on these factors
Instalment limited to about 50%
of monthly income
Loan capped @ Up to 90% + 10% MCRE
Instalments of other loans lower
Increase your eligible Bank Muamalat Home Loan amount by these steps
Make your spouse a co-applicant,
and her income will add
to your eligibility
Choose longer tenure loan up to 35 years
Alternatively add your parents
Documentation needed to apply for an BANK Muamalat Home Loan
- 1. Photocopy of I/C of applicant(s).
- 2. Latest 3 months salary slips.
- 3. Latest J/EA Form.
- 4. Confirmation letter from employer.
- 5. Original S&P Agreement/ booking sheet / down payment receipt.
- 6. Business Registration, Form 24, Form 49, Form A or B, Form D (for self employed which ever applicable).
- 7. Latest 3 months Bank Statement.
- 8. Any additional documents if required by the Bank.
Bank Muamalat Home Loan Interest RatesUpdated on 25 Jun 2017
|Margin of Finance||Up to 90% + 10% MCRE|
|Guarantor Requirement||Guarantee Required|
Features and benefits of Bank Muamalat Home Financing-i
Let us take a look at the features and benefits of this home financing product:
- You will get financing for up to 70 years of age or for a period of 35 years.
- With this product, you will receive funds for moving costs and related expenses (MCRE).
- It also gives funds for will writing. This is known as wasiat in Islamic banking principles.
- You will receive a waiver of 100% on your stamp duty when you choose to move from conventional home loan to Islamic home financing. This is according to Government gazette under P.A.(A) 376/2010, Stamp Duty (Remission) Order 2010 of Stamp Act 1949.
- You can enjoy a competitive capped rate of 10.5%.
- You will receive a discount of 20% on the stamp duty whenever you take a home financing product from Bank Muamalat. This exclusive promotion is valid until December 31, 2017.
- When you choose home financing from Bank Muamalat, you can conveniently calculate your monthly installments by sitting at home itself. You will have to visit the bank’s website and then use the house financing calculator. You will first have to key in your financing amount in RM, the profit rate of your scheme, and the installment period in years. After you click ‘submit’, the calculator will provide you with the amount that you need to pay on a monthly basis.
Types of Bank Muamalat Home Financing-i
Bank Muamalat provides mortgage under 3 main types. Let us take a look these 3 types of home and property financing:
- Bank Muamalat Home Financing-i: You will get up to 90% as the margin of financing along with MCRE. The profit rate is capped at 10.50%. As the name suggests, this product is provided for buying your residential space.
- Bank Muamalat Land Financing-i: You will receive up to 70% along with the MCRE as a margin of financing (MOF). It gives funds for the will writing work. You can enjoy a full waiver of the stamp duty when you redeem this product by turning to Islamic home financing from a conventional home loan.
- Bank Muamalat Shop House Financing-i: The margin of financing (MOF) for this product is up to 80% along with the MCRE. You will get funds for Moving Costs & Related Expenses (MCRE). These include legal fees, stamp duty, MRTT/LTHT, and valuation fee.
- Bank Muamalat Smart Housing Finance 1HUTANG: This scheme is a refinancing option. You can refinance your mortgage with this product and then get additional cash which can be used for other purposes such as education, home renovation and remodelling, working capital, medical expenses, etc.
The interest rate for home financing offered by Bank Muamalat is determined by the base rate. The base rate comprises the Statutory Reserve Requirement (SRR) cost as well as Cost of Funds (COF). These 2 aspects will be fixed by Bank Negara Malaysia. The base rate can change when there are changes in the SRR and the benchmark COF.
Fees and charges
Let us take a look at the fees and charges that you will have to pay for Bank Muamalat Home Financing-i:
|Fees and charges||Amount|
|Stamp duty||According to the Stamp Act 1949 (Revised 1989)|
|Valuation fees or other fees||This depends on the financing product chosen by you.|
|Legal fees||This depends on the financing product chosen by you.|
|Takaful||Amount that is paid to the Takaful Operator|
You will have to meet the following eligible criteria to apply for Bank Muamalat Home Financing-i:
- You will need to be at least 18 years old.
- You should be a Malaysian citizen.
- You should not be bankrupt.
How to apply for Bank Muamalat Home Financing-i
You can apply for Bank Muamalat Home Financing-i by downloading the application form from the bank’s website. After filling it, you can submit it any Bank Muamalat bank branch. You can also apply by directly going to the bank branch to finish the application process.
How to make monthly installments payments
You can make your monthly payments for the home financing by registering yourself for the internet banking platform of the bank.
You will be required to submit the following documents to apply for Bank Muamalat Home Financing-i:
- A copy of your identity card
- Your most recent J or EA form
- Original S and P Agreement or down payment receipt or booking sheet
- Most recent bank statement for 3 months
- Confirmation letter from your employer
- If you are a self-employed individual, you will have to give any of these which apply to you: Form 24, Form A or B, Form D, Form 29, Business Registration.
How to Calculate Loan Installment for Bank Muamalat Home Loan?
Muamalat home loan installment calculator does for you in just under a minute what manual processing would normally take hours to do. Feeding in some important parameters like the desired loan amount, preferred loan tenure, applicable profit rate and then clicking the ‘calculate’ button is all that its takes to know the estimated monthly installment for your Bank Muamalat home loan. This calculator can also be used to vary the input parameters like personal loan amount and preferred loan tenure to reach that optimum monthly installment amount which you think is most suitable to you. It is also very helpful to know what percentage of your monthly income would supposedly go towards home loan repayment.
- If the bank intends to make any changes in the fees and charges of home financing-i, will I get any notice before that?
Yes, you will correct information regarding any change in the fees and charges of the home financing-i product at least 21 days before the changes are made.
- Can you tell me the Shariah concept that is applied in Bank Muamalat Home Financing-i?
The Shariah concept that is followed in this financing is known as Tawarruq.
- Is Takaful coverage mandatory for Bank Muamalat Home Financing-i?Under this financing option, Mortgage Reducing Term Takaful (MRTT) is mandatory. The Long Term Houseowner Takaful can be taken if it applies to you.
- What is the late payment fee that I will have to pay if I do not pay my installments on time before the maturity period?
You will have to give 1% p.a. on the unsettled amount of your financing.
- Is it fine if I pay all my monthly installments completely before the financing matures?
Yes, it is fine. You will receive an Ibra (rebate). This will be equal to the deferred profit at that current point.
- What is the GST amount that I will have to pay for Bank Muamalat Home Financing-i?
You will have to pay 6% GST on the fees and charges that include GST.
- Will I have to pay a valuation fee for properties that are being constructed?
No, you do not have to pay a valuation fee for spaces that are being constructed. A valuation fee is charged only for fully constructed spaces.
Other Products offered by Bank Muamalat:
Apart from offering Home Loan,Bank Muamalat offers other products and services which include: