Rate From
4.10%
Islamic Financing
Margin
Up to 90%
of property value
Tenure
Up to 35 yrs
or age 70
Type
100%
Syariah Compliant
Bank Islam Refinance Rates 2026
| Product | Rate | Lock-in | Margin |
|---|---|---|---|
| Baiti Home Financing-i | From 4.10% | 3 years | Up to 90% |
| Baiti Equity (Cash Out) | From 4.50% | 3 years | Up to 80% |
Financing Details
- Min Financing: RM50,000
- Max Financing: RM5,000,000
- Max Tenure: 35 years
- Max Margin: 90%
Fees & Penalties
- Processing Fee: Nil
- Lock-in Period: 3 years
- Early Settlement: 3% (Year 1), 2% (Year 2), 1% (Year 3)
Bank Islam Home Financing Products
Baiti Home Financing-i
Based on Tawarruq / Commodity Murabahah
Bank Islam's main home financing product for purchase, refinancing, and construction. Fully Syariah-compliant with no riba (interest) involved.
- Up to 90% margin of financing
- Tenure up to 35 years or age 70
- For purchase, refinancing, and construction
- Profit rate from 4.10% p.a.
Baiti Equity Home Financing-i
Cash Out from Existing Property
Withdraw equity from your existing property for renovation, education, debt consolidation, or other needs.
- Up to 80% of property value
- For renovation, education, debt consolidation
- Profit rate from 4.50% p.a.
- Syariah-compliant cash out option. Calculate amount
Calculator: Estimate Your Bank Islam Refinance Savings
Use our free calculator to estimate how much you could save by refinancing with Bank Islam. Compare your current rate against Bank Islam's Baiti financing starting from 4.10%.
Calculate Your Savings with Bank IslamCompare Bank Islam's rate of 4.10% against your current loan
Is Bank Islam Good for Refinancing? Honest Review
Bank Islam is Malaysia's first and largest standalone Islamic bank, established in 1983. Unlike conventional banks with Islamic windows, Bank Islam operates entirely on Syariah principles. Here's our honest assessment:
Pros
- 100% Syariah compliant — entire bank, not just products
- No riba — profit-based Islamic financing concept
- Competitive rates — comparable to conventional banks
- Takaful options — Islamic insurance available
- Government servant friendly — experienced with public sector
- Fixed rate options — predictable payments available
Cons
- Slightly higher rates — than some conventional banks
- Fewer branches — smaller network than Maybank/CIMB
- Longer processing time — may take more time than bigger banks
- Limited product flexibility — fewer variants vs conventional
Best For:
Borrowers who want 100% Syariah-compliant financing with competitive rates. Bank Islam is ideal for borrowers who prioritize Syariah compliance and want the assurance that their entire banking relationship — not just a single product — is Islamic.
Why Choose Islamic Home Financing?
No Riba (Interest)
Profit-based instead of interest-based — transactions involve buying and selling of assets.
Asset-Backed Transaction
Every financing is backed by a real asset, ensuring transparency and Syariah compliance.
Transparent Pricing
The profit rate and total cost are disclosed upfront. No hidden charges or compounding surprises.
Ethical Banking Principles
Funds are only invested in halal industries. No involvement in gambling, alcohol, or harmful activities.
Peace of Mind
For Muslim borrowers, the assurance that your home financing fully complies with Islamic principles.
Open to Everyone
Non-Muslims are equally welcome and benefit from the same ethical and transparent banking model.
Bank Islam Refinance Eligibility
Basic Requirements
- Malaysian citizen or PR
- Age: 18-65 (up to 70 for certain products)
- Minimum income: RM2,500/month
- DSR: Up to 70%
- Clean credit record (CCRIS/CTOS)
- Muslims and non-Muslims welcome
Higher Approval Chances
- - Government servants / GLC employees
- - Income above RM5,000/month
- - Existing Bank Islam customer with good track record
- - Property in established residential areas
- - Low debt-to-income ratio (below 60%). Check your DSR
May Face Challenges
- - Self-employed with irregular income
- - New employees (less than 6 months)
- - High existing debt commitments
- - Properties in rural or fringe locations
Dapatkan Kadar Terbaik Untuk Anda
Pakar kami akan bantu anda compare 10+ bank dalam masa 24 jam
Bank Islam vs Other Islamic Banks
| Bank | Rate | Type | Max Margin |
|---|---|---|---|
| Bank Islam | 4.10% | Islamic | 90% |
| Maybank Islamic | 3.95% | Islamic | 90% |
| CIMB Islamic | 4.00% | Islamic | 90% |
| Bank Rakyat | 4.20% | Islamic | 90% |
| RHB Islamic | 4.05% | Islamic | 90% |
* Rates are indicative and subject to change. Compare all 14 banks' rates → Maybank, CIMB, RHB, Bank Rakyat
Documents Required
For Salaried Employees
- Copy of IC (MyKad)
- 3 months payslips
- 3 months bank statements
- EPF statement
- Current loan/financing statement
- Property documents (S&P, title)
For Self-Employed
- All salaried documents above
- SSM registration (Form 9 & 49)
- 2 years tax returns (BE/B form)
- 6 months bank statements
- Business financial statements
Hidden Costs & Fees to Watch
Early Settlement Penalty
3% (Year 1), 2% (Year 2), 1% (Year 3) of outstanding balance during the 3-year lock-in period.
Legal Fees
RM2,000 - RM5,000. Ask about any promotional packages that may subsidize this.
Valuation Fee
RM300 - RM1,000 for professional property valuation.
Stamp Duty
0.5% of financing amount. May be exempted for first-time buyers or under RM500k.
Takaful / MRTA
Bank Islam may require or recommend Takaful coverage (Islamic insurance). Compare Takaful quotes to ensure fair pricing.
How to Apply for Bank Islam Refinance
Check Eligibility
Verify income, DSR, and credit status meet requirements.
Gather Documents
Prepare IC, payslips, bank statements, and property documents.
Apply
Visit Bank Islam branch or apply online through their website.
Property Valuation
Bank Islam arranges professional valuation of your property.
Approval
Credit assessment and Syariah compliance verification.
Documentation Signing
Review and sign financing agreement with appointed lawyer.
Disbursement
Bank Islam settles your old loan. New financing begins.
Bank Islam Contact
Hotline
03-26900900
Website
bankislam.com.my
Branches
Nationwide across Malaysia