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Finding the best house loan interest rates in Malaysia can be challenging, particularly with the numerous options available.Critical terms such as home loan, housing loan, and loan tenure are essential for making informed decisions.This guide will help you navigate the various loan types, their interest rates, and other key factors to consider when searching for your dream home.In November 2025, several financial institutions in Malaysia offered competitive home loans and other financing options. Here's a quick overview:1. Best Housing Loan Rates in November 2025Bank NameHouse Loan NameProfit RateFinancing TypeTenureLock-In PeriodMaybank IslamicHouzKEYFrom 2.88% p.a.Term Islamic FinancingUp to 35 years1 YearBank IslamBaiti Home Financing-iFrom 3.55% p.a.Term Islamic FinancingUp to 35 yearsNoneBank of ChinaHousing LoanFrom 3.88% p.a.Term loanUp to 35 years3 YearsStandard CharteredSaadiq My HomeOne-iFrom 3.9% p.a.Flexi islamic financingUp to 35 yearsNoneAlliance BankConventional Home LoanFrom 4.11% p.a.Semi-Flexi loanUp to 35 yearsNoneSource: RinggitplusThese banks offer a range of housing and home loans that cater to different needs, whether you're looking for a flexible or term loan.Understanding Housing Loan Rates: 1. Best Housing Loan Rates in November 20252. Understanding the Effective Lending Rate (ELR)3. Understanding House Loan Interest Rates4. How Should You Compare Lending Rates Across Banks as Borrowers?5. How to Plan and Compare Your House Loan Interest Rates?Critical Terms in Home Financing1. Maybank Islamic HouzKEYSource: MaybankRequirementsCriteriaAge18 to 70 years oldEligibilityMalaysian citizen onlyMust not have more than one (1) home financing at the point of applicationSalaried employee, Self-employedUp to 3 guarantors allowedSource: MaybankFees & ChargesCriteriaLate Penalty Fee1% p.a. on the outstanding amountProcessing FeeNo FeeEarly Settlement FeeNo FeeSource: MaybankBenefitsDescriptionFull 100% FinancingGet full financing with no downpayment requiredNo Payment During ConstructionMaybank helps finance the construction costs.LOWEST Monthly PaymentEnjoy the lowest monthly payments with the best rates.Source: MaybankFor more information, please visit the Maybank website.2. Bank Islam Baiti Home Financing-iSource: Bank IslamRequirementsCriteriaAgeAge 18 to 70 years oldMinimum Annual IncomeRM24,000EligibilityMalaysian CitizenNot a bankrupt or have any legal actionGainfully employed or Profitable business for at least 3 yearsMinimum 1-year good payment track recordSource: Bank IslamFees & ChargesCriteriaLate Penalty Fee1% p.a. on the overdue installments until the date of full payment, and this applies to the Facility before maturity. If after maturity, you will be charged with a sum equivalent to the prevailing daily overnight Islamic Interbank Money Market Rate on the outstanding balance i.e., outstanding Sale Price less Ibra’, if anyProcessing FeeWaivedEarly Settlement FeeThere is no 'lock-in period' for this Facility, and Bank Islam shall grant Ibra' on the deferred profit after full settlement is made.Redemption Letter FeeRM50 per requestLetter for EPF Withdrawal FeeRM20 per requestInsurance TypesMRTTMLTTHouseowner/Householder TakafulSource: Bank IslamBenefits & FeaturesDetailsProperty TypeApplicable for under construction or completed housesMargin of FinancingUp to 90% (excluding additional costs)ExclusionsStamp DutyLegal FeesValuation FeesFinancing TenureUp to 35 years or age 70, whichever comes firstLock-in PeriodNo lock-in periodCompounding ElementsNone (no compounding profit or interest)Processing FeeWaivedEarly SettlementNo penalty for early settlementSource: Bank IslamYou may visit Bank Islam website for more information.4. Bank of China Housing LoanSource: Bank of ChinaRequirementsCriteriaAge18 to 70 years oldMinimum Annual IncomeRM60,000EligibilityMalaysiansPermanent Residents, Foreigners working in MalaysiaSalaried employee, Self-employedSource: RiggitPlusFees & ChargesCriteriaLate Penalty Fee1% p.a. on the amount in arrears causing the total outstanding to increaseProcessing FeeWaivedEarly Settlement Fee2.25% Prepayment/Full settlement within the first 3 years from the date of first release of the loanInsurance TypesFire Insurance (Mandatory)Houseowner Insurance (Optional)MRTA (Optional)MLTA (Optional)Source: RiggitPlusYou may visit the Bank of China Malaysia website for more information3. Standard Chartered Saadiq My HomeOne-iSource: Standard CharteredRequirementsCriteriaAge21 to 70 years oldMinimum Annual IncomeRM48,000EligibilityMalaysiansForeigners with a valid working visa (minimum 1 year), financing margin up to 80%Open to all applicants, including non-MuslimsSource: RiggitPlusFees & ChargesCriteriaLate Penalty Fee1% p.a. of the outstanding amountProcessing FeeWaivedMonthly FeeRM10Early Settlement FeeNo FeeRedemption Letter FeeRM50 per requestLetter for EPF Withdrawal FeeRM20 per requestCancellation Fee2.00% of the financing amount if the bank bears the entry costInsurance TypesFire TakafulMRTTSource: RiggitPlusBenefits & FeaturesDescriptionLock-in PeriodNoneFinancing MarginUp to 90% for eligible local applicantsShariah ComplianceBased on the Islamic principle of Diminishing MusyarakahFlexible StructureCombines a home financing and savings account in one packageExtra Repayment OptionMake additional payments anytime to reduce your financing principalWithdrawal AccessWithdraw extra repayments anytime without bank approvalAutomatic OffsetSurplus cash deposited in the savings account is automatically offset against the financing balance, reducing profit chargesSource: RiggitPlusYou may visit the Standard Chartered website for more information.5. Alliance Bank Conventional Home LoanSource: Alliance BankRequirementsCriteriaAge21 to 70 years oldMinimum Annual IncomeRM24,000EligibilityMalaysian citizens, subject to credit evaluation via CCRIS / CTOSAny nationalitySalaried employee, Self-employedSingle or joint applicantSource: RiggitPlusFees & ChargesCriteriaLate Penalty FeeUp to 1% p.a. on the amount in arrearsWithdrawal FeeRM25 for every withdrawal of excess fund in Advance Payment for Housing Loan/Term Loan with withdrawal featuresSet-up FeeOne-time RM200 fee upon account openingProcessing FeeWaivedMaintenance FeesWaivedEarly Settlement FeeWaivedRedemption Letter FeeRM25 per requestLetter for EPF Withdrawal FeeRM25 per request (extra RM5 for delivery)Document Retrieval FeeRM7 (extra up to RM15 for delivery)Ad hoc Loan StatementRM2 per request (free via email or branch)Legal & Disbursement FeeBased on SRO and related chargesInsurance TypesFire InsuranceMRTASource: RiggitPlusBenefits & FeaturesDescriptionMargin of FinancingUp to 90% of property value + additional 5% to cover MRTA, legal, and valuation fees (for completed properties only)FlexibilityOption to make Advance Payments (extra payments) and withdraw excess funds when neededAdvance Payment WithdrawalAllowed once the minimum required balance in the Advance Payment bucket is metEffect of Advance PaymentReduces principal loan outstanding, not interest chargesCredit History ConsiderationApplicants with poor payment records may still qualify if they show improved financial discipline and responsible repayment behaviorSource: RiggitPlusYou may visit the Alliance Bank website for more information2. Understanding the Effective Lending Rate (ELR)Source: Bank Negara MalaysiaThe Effective Lending Rate (ELR) is a critical component when evaluating home loans. It represents the total cost of borrowing, expressed as an annual percentage rate. The ELR includes the reference rate and the spread, which collectively impact your monthly repayments.Reference Rate: This is the base rate, like the Standardised Base Rate (SBR), which is influenced by Bank Negara Malaysia's policies.Spread: Additional charges include credit and liquidity risk premiums, operating costs, and the bank’s profit margin.The ELR is crucial as it affects the total repayment amount and helps borrowers compare different loan products effectively.What is the Reference Rate?Source: Bank Negara MalaysiaThe reference rate is a benchmark interest rate used by Malaysian banks to determine the changes in borrowers' repayments on floating-rate loans throughout the tenure. This rate can vary between institutions, but it is a foundation for setting the lending rate.Is the Reference Rate Equal to the Standardised Base Rate (SBR)?No, the reference rate differs from the Standardised Base Rate (SBR). The SBR is a specific reference rate that standardizes the base rate across all banks. Introduced on 1 August 2022, the SBR is directly linked to the Overnight Policy Rate (OPR) set by Bank Negara Malaysia. This standardization aims to simplify the comparison of loan rates across different banks.Is the Reference Rate Equal to the Overnight Policy Rate (OPR)?The reference rate can include the OPR as a component, especially when the SBR is used. The OPR is the interest rate at which banks lend to each other overnight and is set by the central bank. Changes in the OPR directly influence the SBR, affecting the reference rate used for loans.What is Spread?The spread is an additional percentage added to the reference rate to arrive at the ELR. It covers various costs and risks incurred by the bank, including:Credit Risk Premium: Compensation for the risk that a borrower might default.Liquidity Risk Premium: Compensation for the risk associated with the bank’s liquidity.Operating Costs: The day-to-day expenses of running the bank.Profit Margin: The bank’s earnings from the loan.The spread is generally fixed for the duration of the loan unless there is a significant change in the borrower’s credit risk profile.3. Understanding House Loan Interest RatesUnderstanding the mechanics of interest rates and their impact on repayments is essential for making informed decisions about Malaysian home loans.What are House Loan Interest Rates?House loan interest rates are the percentage of interest that banks charge on the loan's principal amount.These rates determine the cost of borrowing and are influenced by various factors, including the central bank’s policies and the individual bank's cost structures.How to Calculate House Loan Interest Rate?Source: Bank Negara MalaysiaCalculating your home loan interest rate is crucial for understanding the total amount you will pay over time.Use a home loan calculator to determine your monthly instalments and total repayment. Here’s an example:Example Calculation:Bank’s Base Rate (BR): 2.00%Spread: 1.50%ELR: BR + Spread = 2.00% + 1.50% = 3.50%For a loan amount of RM300,000 over 30 years, the monthly instalment would include the interest and principal repayment. Understanding these calculations can help you save money and manage your loan tenure effectively:Annual Interest Amount: RM300,000 x 3.50% = RM10,500Monthly Interest Amount: RM10,500 / 12 = RM875Thus, the monthly repayment would include RM875 in interest plus the principal repayment.What Can Affect Your House Loan Interest Rate?Several factors can influence your house loan interest rate, including:Central Bank Policies: Changes in the Overnight Policy Rate (OPR) by Bank Negara Malaysia can directly impact interest rates.Economic Conditions: Inflation and economic stability can influence interest rates.Borrower’s Credit Score: Higher credit scores often result in lower interest rates.Loan Tenure: Longer loan tenures can sometimes attract higher interest rates.4. How Should You Compare Lending Rates Across Banks as Borrowers?Comparing lending rates across banks involves more than just looking at the ELR. Consider the following steps:Review the ELR and Spread: Compare the total cost of borrowing.Understand Additional Fees: Be aware of any extra fees that might apply.Read the Product Disclosure Sheet (PDS): This document provides crucial details about the loan.5. How to Plan and Compare Your House Loan Interest Rates?When planning a home loan, consider the property's value, the loan amount, and the loan tenure.Use a loan calculator to estimate your monthly instalments and ensure you understand all associated fees. Planning and comparing Malaysia house loan interest rates requires a strategic approach:Research Different Lenders: Identify potential lenders and their offerings.Interest Rates: Compare the interest rates offered by different banks.Additional Features: Evaluate foreclosure charges and other loan features. Some loans include extra funds withdrawal or linked current accounts for easier management.Read Reviews: Learn from the experiences of other borrowers.Seek Professional Advice: Consult with financial advisors if needed.Maximum Loan Tenure: Most banks offer up to 35 years.Prepayment Options: Check if the bank allows for additional payments without penalties.Insurance Requirements: Most housing loans require Mortgage Reducing Term Assurance (MRTA) or other types of insurance.Flexibility: Compare loans that offer flexible repayment options, like a flexi loan or semi-flexi loan (make sure to understand the terms and conditions).Critical Terms in Home FinancingUnderstanding key terms related to home financing is crucial for navigating the market:Outstanding Principal Balance: The remaining amount you owe on your loan, excluding interest.Home Loan Balance: The total amount left to pay on your home loan.Basic Term Loan: A standard loan with fixed interest rates and repayment terms.Loan Period: The total time over which you will repay the loan.Mortgage Reducing Term Assurance: Insurance that decreases as your loan balance decreases.Choosing the right house loan or home loan in Malaysia requires careful consideration of several factors, including the interest rate, loan tenure, and associated fees. By understanding the options available and using tools like a home loan calculator, you can make a more informed decision that aligns with your financial goals and helps you secure your dream home.Version: CN, BMAre you looking for a dream house after getting the best house loan interest rates? We can assist you! Send us your details, and we will contact you soon! [custom_blog_form]Continue Reading:OPR Remains at 3%: How Does This Affect Housing Loans?Is Now the Perfect Time to Invest in Malacca’s Property? Explore Malacca’s Potential!Fixed Deposit: Which Bank Has the Best FD Rates for July 2024? + Quick Guide to Fixed Deposits (FD & FD-i)

In Malaysia’s vibrant northern region, IQI Penang stands as a driving force in shaping the property landscape through innovation, professionalism, and trust.From the humble days of 2014, the branch has evolved into a key player within IQI’s nationwide network, leading in project sales and rental services while nurturing a new generation of real estate leaders.What defines IQI Penang goes beyond its numbers. It is a story of people, passion, and purpose; a team that continues to elevate Penang’s position as a property hub known for quality, opportunity, and progress.Inside IQI PenangThe Journey of IQI PenangRecognition and AchievementsKey Projects and PartnershipsVision for the FutureFrequently Asked QuestionsThe Journey of IQI PenangFrom humble beginnings in 2014, IQI Penang has consistently built a reputation for excellence, transparency, and results. From high-rise developments on the island to landed properties across Seberang Perai, the branch has played a pivotal role in connecting people with homes that meet their aspirations.Its achievements in 2024 reflect both scale and substance:CategoryAchievement / Value (RM)Project Sales Transaction ValueRM1,551,856,768Secondary Market Transaction ValueRM753,699,222Rental Transaction ValueRM7,613,123Total Transaction ValueRM2,313,169,113Professional Fee EarnedRM54,814,350Project Sales92Real Estate Negotiators (RENs)350Real Estate Agents (REAs)7Administrative Team5These milestones are more than figures; they represent the confidence clients and developers place in IQI Penang’s professionalism, market knowledge, and dedication to delivering results.A Team That Inspires SuccessBehind every transaction lies the effort of a passionate, professional, and driven team. IQI Penang’s 350 Real Estate Negotiators are guided by strong leadership and a shared mission to transform the property journey for clients across northern Malaysia.With a culture that encourages growth and collaboration, IQI Penang has created an environment where every agent is empowered to succeed, whether through mentorship, training, or digital tools that enhance their capabilities.Complementing this front-line team is an efficient administrative crew of five, ensuring smooth operations across marketing, compliance, and documentation. Together, they embody IQI’s commitment to precision, trust, and client satisfaction.Recognition and AchievementsIQI Penang’s excellence has been recognized both within the IQI network and across Malaysia’s real estate industry.In 2024, the branch proudly received the Regional Award: Pearl of the North at the StarProperty Awards 2024, a distinction that celebrates its leadership and strong performance in the northern region. That same year, IQI Penang’s top performers were also celebrated at the IQI Prestige Awards, the company’s annual black-tie gala that honours high achievers across its global network. The Prestige Awards recognise excellence in categories such as Top Rookie, Million Dollar Achiever, Top Team, and Best Social Media Influencer, celebrating not just performance but innovation, leadership, and personal growth.These recognitions serve as a reminder that success at IQI Penang is built collectively, through dedication, learning, and the belief that excellence is a habit, not a moment.Key Projects and PartnershipsIQI Penang’s success is deeply rooted in collaboration with top developers and strategic industry partners. [property_carousel states="pinang"]Through these relationships, the branch continues to introduce buyers and investors to projects that combine aesthetic design, sustainable living, and investment value.These partnerships also extend beyond property transactions, creating platforms for knowledge sharing, community engagement, and long-term relationships built on trust.Vision for the FutureAs Penang continues to evolve into a global hub for innovation, manufacturing, and bright living, IQI Penang remains committed to growing alongside the state’s transformation.Looking ahead, the branch aims to expand its agent network, strengthen partnerships, and leverage cutting-edge PropTech tools to improve the client experience and operational efficiency.Every achievement to date is a step toward a larger mission: to empower lives through property while elevating Penang’s role as a world-class destination for investors and homeowners.With vision, dedication, and unity at its core, IQI Penang is not only driving the pulse of northern Malaysia’s real estate market, it is defining its future.Frequently Asked QuestionsWhat does the IQI stand for? IQI stands for International Quality Investments. The team at IQI has a wealth of expertise in the property industry, complemented by links with institutional investors from partner companies.Who is Kashif Ansari CEO? Kashif Ansari is the Co-founder and Group CEO of Juwai IQIWhere is IQI Global Headquarters located? IQI Global Headquarters is located in Kuala Lumpur, Malaysia. What is IQI Global's culture? IQI Global's culture is PropTech-driven, highly entrepreneurial, and performance-oriented, emphasizing a supportive global "family" environment.Be part of IQI Penang’s journey of growth and success! Whether you’re a fresh graduate, experienced negotiator, or someone passionate about property, IQI gives you the platform to grow your career, learn from industry leaders, and achieve real results. Enquire below now![custom_blog_recruit_form]Continue Reading:IQI Prestige Award 2025: A Celebration of Real Estate Excellence East Coast Rail Link (ECRL) and Future Developments in PenangIQI Johor: Building Johor’s Real Estate Future

Written by Dave PLatter, Global PR DirectorThe South China Morning Post last month wrote a fascinating article about how the rate-cutting cycle at the U.S. Federal Reserve affects investors.  One of the experts cited in the article by Asia's largest English-language news source was IQI’s own Co-Founder and Group CEO, Kashif Ansari.  “The USA, UK, Canada, and the UAE all are in a rates-easing cycle,” he told the Post. “That gives borrowers more buying power as we go into 2026.  “Typical mortgage interest rates this month vary from as low as 1.8% in Japan to as much as 6.5% in the USA, with offshore buyers who have no local income typically paying up to 2 percentage points more. For buyers looking at the USA, Mr. Ansari said many investors consider it a good time to purchase, especially if they can pay with cash. The rental market is robust and provides sustained rental yields, and with rates easing, they will be able to refinance later at a lower rate.  Regarding the UK, he said, “The UK has a chronic housing shortage and lower interest rates than the United States. That also makes it an attractive rental market, especially if you can purchase a relatively high-yielding property. “ Mr. Ansari said Japan is attractive at the moment because the yen is weak and properties in the major cities deliver high yields.  “But foreign investors in Japan should move with speed because some locals are calling for a foreign buyer ban, similar to Korea’s recently announced partial ban.” For more of Mr. Ansari's insights on interest rates, please see the provided table.  CountryTypical Prevailing Mortgage Rates* Next Rate Decision Date United States (Fed) ~6.35–6.50% The Fed eased rates by 25 basis points on 18 September.  United Kingdom (BoE) ~4.3% (avg effective) The Bank of England kept rates unchanged on 18 September.  Canada (BoC) ~3.8–4.2% The Bank of Canada eased rates by 25 basis points on 18 September.  Australia (RBA) 5.68% The RBA left the cash rate unchanged at 3.60 per cent on 30 September. Japan (BoJ) ~1.8–2.0% The Bank of Japan left rates unchanged on 19 September. United Arab Emirates (CBUAE) ~4.0–5.5% The CBUAE cut by 25 basis points on 18 September. Singapore (MAS) 2.60% (HDB) / ~2.1–2.3% (bank 2-yr fixed) 2025-10-14 Thailand (BOT) ~5–6% 2025-10-08 Malaysia (BNM) ~3.8–4.5% 2025-11-06 New Zealand (RBNZ) ~4.9–5.3% 2025-10-08 Discover more insights here!Download

Written by Taco Heidinga, IQI Global Strategic AdvisorDubai, UAE Dubai remains the Middle East’s haven for cross-border capital. Freehold zones and 99-year leasehold rights ensure clarity for foreign buyers, while off-plan projects and prime districts continue to see strong demand. Yields of 5–7% keep Dubai highly liquid and attractive despite warnings of corrections in oversupplied areas. Tokyo, Japan Foreigners face no ownership restrictions in Japan, and Tokyo is drawing strong global interest. Land prices rose at the fastest pace in 34 years in 2025, underpinned by infrastructure investment and resilient rental demand. Transparency and low borrowing costs reinforce Tokyo’s role as a long-term, stable market. Kuala Lumpur, Malaysia Malaysia recorded some of its biggest bond inflows in over a decade in mid-2025, signaling strong external confidence. Foreigners can purchase above RM1m thresholds (varies by state), with federal territories set at RM1m. Affordable luxury in KL, coupled with a national steel roadmap targeting full decarbonisation by 2050, highlights Malaysia’s appeal for both yield and sustainable growth. Bali, Indonesia Foreigners invest in Bali through PT PMA (company) structures or Hak Pakai (Right-to-Use). Arrivals reached 602,213 in May 2025, with hotel occupancy above 58%, reinforcing rental demand for villas and branded hospitality. Indonesia’s Golden Visa also adds policy support for long-term investors. Strategy for November Blend Dubai’s liquidity, Tokyo’s stability, Kuala Lumpur’s affordable growth, and Bali’s tourism-driven yields. This mix keeps you within clear foreign-buyer frameworks while capturing Asia’s most resilient opportunities for 2025 and beyond. Discover more insights here!Download