Rate From
4.15%
Islamic Financing
Margin
Up to 90%
of property value
Tenure
Up to 35 yrs
or age 65
Type
100%
Islamic Bank
Bank Muamalat Refinance Rates 2026
| Product | Rate | Lock-in | Margin |
|---|---|---|---|
| Home Financing-i (Musharakah) | From 4.15% | 3 years | Up to 90% |
| Smart Home Financing-i | From 4.25% | 3 years | Up to 90% |
Financing Details
- Min Financing: RM50,000
- Max Financing: RM3,000,000
- 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 Muamalat Home Financing Products
Home Financing-i (Musharakah Mutanaqisah)
Diminishing Partnership Concept
Bank Muamalat's flagship product where you and the bank co-own the property. You gradually buy the bank's share until you own 100% — considered one of the most authentically Syariah-compliant structures available.
- Up to 90% margin of financing
- Tenure up to 35 years
- You and bank co-own property, gradual ownership transfer
- Profit rate from 4.15% p.a.
Smart Home Financing-i
Flexible Payment Options
Designed for borrowers who need flexible payment arrangements. Step-up or step-down facility lets you adjust payments based on your financial situation.
- Step-up or step-down payment options
- Good for variable income earners
- Profit rate from 4.25% p.a.
- Flexible tenure options
What is Musharakah Mutanaqisah?
"Diminishing Partnership" — How It Works
Bank and customer co-own the property
E.g., bank owns 90%, you own 10% (your down payment portion)
You pay monthly rent + buy bank's share
Each payment includes rental for the bank's portion and purchase of additional ownership
Your ownership gradually increases
Over time, the bank's share diminishes as yours grows
At the end, you own 100%
Full ownership transfers to you once all payments are completed
Why it matters: Musharakah Mutanaqisah is considered by many Islamic scholars as more authentically Syariah-compliant than Tawarruq or Commodity Murabahah because it involves genuine asset co-ownership rather than a debt-based commodity transaction.
Calculator: Estimate Your Bank Muamalat Refinance Savings
Use our free calculator to estimate how much you could save by refinancing with Bank Muamalat. Compare your current rate against Bank Muamalat's financing starting from 4.15%.
Calculate Your Savings with Bank MuamalatCompare Bank Muamalat's rate of 4.15% against your current loan. Want to access your home equity? Calculate your cash-out amount.
Is Bank Muamalat Good for Refinancing? Honest Review
Bank Muamalat is Malaysia's second full-fledged Islamic bank, established in 1999. Backed by DRB-HICOM and Khazanah Nasional, it operates entirely on Syariah principles using the Musharakah Mutanaqisah concept. Here's our honest assessment:
Pros
- 100% Syariah compliant — full-fledged Islamic bank
- Musharakah Mutanaqisah — considered more authentically Islamic
- Low minimum income (RM2,000) — accessible to more borrowers
- Government servant friendly — priority processing
- Strong East Malaysia presence — branches in Sabah/Sarawak
- Takaful integration — Islamic insurance options available
Cons
- Smaller branch network — fewer branches than bigger banks
- Slightly higher rates — than Bank Islam (4.10%) and Maybank Islamic (3.95%)
- Longer processing times — may take more time than larger banks
- Less digital features — online platform less advanced
- Limited product range — fewer product variants vs bigger banks
Best For:
Borrowers seeking authentic Musharakah Mutanaqisah Islamic financing with low minimum income. Ideal for those who prefer Musharakah Mutanaqisah over Tawarruq, government servants, borrowers in East Malaysia, and those with lower incomes who still want fully Islamic financing.
Bank Muamalat Refinance Eligibility
Basic Requirements
- Malaysian citizen
- Age: 18-65 (or until retirement)
- Minimum income: RM2,000/month
- DSR: Up to 70%
- Clean credit record (CCRIS/CTOS)
- Muslims and non-Muslims welcome
Higher Approval Chances
- - Government servants / GLC employees
- - Income above RM4,000/month
- - Existing Bank Muamalat customer
- - 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 locations
Dapatkan Kadar Terbaik Untuk Anda
Pakar kami akan bantu anda compare 10+ bank dalam masa 24 jam
Bank Muamalat vs Other Islamic Banks
| Bank | Rate | Concept | Min Income | Strength |
|---|---|---|---|---|
| Bank Muamalat | 4.15% | Musharakah | RM2,000 | East Malaysia |
| Bank Islam | 4.10% | Tawarruq | RM2,500 | Largest Islamic |
| Maybank Islamic | 3.95% | Commodity Murabahah | RM3,000 | Branch network |
| CIMB Islamic | 4.00% | Tawarruq | RM3,000 | Flexibility |
| Bank Rakyat | 4.20% | Tawarruq | RM2,000 | Govt servants |
* Rates are indicative and subject to change. Compare all 14 banks' rates → Bank Islam, Maybank, 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
- 2 years tax returns (BE forms)
- 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.
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 Muamalat may require Takaful coverage (Islamic insurance). Compare quotes to ensure fair pricing.
How to Apply for Bank Muamalat Refinance
Check Eligibility
Verify income, DSR, and credit status meet requirements.
Gather Documents
Prepare IC, payslips, bank statements, and property documents.
Visit Bank Muamalat Branch
Submit application at your nearest Bank Muamalat branch.
Property Valuation
Bank 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 Muamalat settles your old loan. New financing begins.
Bank Muamalat Contact
Hotline
03-2600 5500
Website
muamalat.com.my
Branches
Nationwide (strong in East Malaysia)