Choosing the right bank for your home loan refinancing is one of the most important financial decisions you can make. With interest rates varying by up to 1% between banks, the right choice could save you tens of thousands of ringgit over your loan tenure. In Malaysia, more than 15 banks and financial institutions offer refinancing packages, each with different rates, terms, and benefits.
In this comprehensive guide, we compare refinancing rates from all major Malaysian banks to help you make an informed decision. Our data is updated regularly to ensure you have access to the latest rates and promotions available in 2026.
Complete Bank Refinancing Rates Comparison 2026
Below is our comprehensive comparison of refinancing rates from all major banks in Malaysia. Rates are subject to change based on Bank Negara's OPR and individual bank policies.
Malaysia Bank Refinance Rates 2026
Updated: January 2026
| Bank | Rate From | Best For |
|---|---|---|
 Maybank | 3.65% | Existing customers |
 Public Bank | 3.68% | Salaried employees |
 CIMB | 3.70% | High loan amounts |
 Hong Leong | 3.72% | First-time refinancers |
 RHB | 3.75% | Flexible terms |
 UOB | 3.75% | Professionals |
 AmBank | 3.80% | Cashback seekers |
ALL Alliance Bank | 3.82% | Quick approvals |
 Bank IslamIslamic | 3.85% | Islamic financing |
 Affin Bank | 3.85% | Competitive rates |
 HSBC | 3.88% | Premier banking |
BSN BSN | 3.90% | Government servants |
 Standard Chartered | 3.90% | High-value properties |
* Rates are indicative and subject to change. Please check with the bank for current rates.
How to Choose the Best Refinancing Bank
While interest rate is important, it shouldn't be your only consideration. Here are the key factors to evaluate:
Interest Rates
Compare the effective rate (BR + spread), not just the advertised rate. A difference of 0.5% can save you RM15,000+ over 25 years on a RM300,000 loan. Always ask for the actual rate you'll receive based on your profile.
Lock-in Period
Most banks have 3-5 year lock-in periods with 2-3% early settlement penalties. If you anticipate refinancing again or selling your property, choose a shorter lock-in period or accept a slightly higher rate for flexibility.
Processing Fees
Some banks waive processing fees as part of promotions, while others charge RM200-500. Factor in legal fees (0.5-1% of loan), valuation fees (RM300-500), and stamp duty when calculating total refinancing cost.
Customer Service
Consider the bank's reputation for service quality, branch accessibility, and digital banking features. You'll be dealing with them for potentially 20-30 years, so a good banking relationship matters.
Top Banks for Refinancing 2026
Based on our analysis of rates, terms, and customer feedback, here are the top banks for home loan refinancing this year:
Advantages
- •Lowest base rate in the market
- •Largest branch network in Malaysia
- •Fast approval process (5-7 working days)
- •Flexible tenure up to 35 years
- •Special packages for government servants
Considerations
- •5-year lock-in period
- •Strict documentation requirements
- •Higher rates for non-prime properties
Best for: First-time refinancers seeking stability and lowest rates
Compare Maybank ratesAdvantages
- •Competitive rates for all property types
- •Excellent customer service reputation
- •Flexible repayment options
- •Lower legal fees through panel lawyers
- •Good rates for high-rise properties
Considerations
- •Longer processing time (2-3 weeks)
- •Conservative LTV for older properties
- •Limited online application features
Best for: Borrowers prioritizing service quality and reliability
Compare Public Bank ratesAdvantages
- •Quick online application process
- •Cashback promotions available
- •Good rates for properties above RM500k
- •Shorter 3-year lock-in option available
- •Excellent mobile banking app
Considerations
- •Higher rates for smaller loan amounts
- •Additional fees for certain features
- •Stricter income verification
Best for: Tech-savvy borrowers who prefer digital banking
Compare CIMB ratesAdvantages
- •Higher DSR ceiling than most banks (up to 75%)
- •Competitive rates for existing customers
- •Good flexi-loan options with redraw facility
- •Flexible for borrowers with higher debt commitments
Considerations
- •Longer lock-in period (3 years)
- •Stricter property valuation requirements
- •Slower processing than competitors
Best for: Borrowers with higher DSR who need flexibility
Compare Hong Leong ratesAdvantages
- •Faster processing time (2-3 weeks average)
- •Competitive cashback promotions
- •Good for salaried employees
- •My1 Home Loan offers payment flexibility
Considerations
- •Less flexible for self-employed
- •Standard DSR limits (up to 70%)
- •Fewer flexi options than competitors
Best for: Those who need fast approval and processing
Compare RHB ratesAdvantages
- •Frequent promotional rates and cashback offers
- •Accepts wider income sources
- •Good for those seeking upfront rebates
- •HomeLink product with flexible features
Considerations
- •Lower maximum margin (up to 85%)
- •Variable promotion availability
- •Stricter property requirements
Best for: Those seeking promotional rates and cashback offers
Compare AmBank ratesAdvantages
- •MortgageOne offset account saves interest daily
- •Up to RM30,000 upfront costs waived for large loans
- •Competitive rates for loans above RM500k
- •Strong international banking network
Considerations
- •Higher minimum loan amount (RM300k preferred)
- •Limited branch network in Malaysia
- •Stricter income requirements (RM8k minimum)
Best for: High-income borrowers with large loan amounts seeking offset account features
Compare Standard Chartered ratesAdvantages
- •Highest margin up to 95% including MRTA
- •Foreigner-friendly with competitive packages
- •Flexible repayment options with partial prepayment
- •Good digital banking platform
Considerations
- •Higher base rate than local banks
- •Smaller branch network than local banks
- •Higher minimum income requirement
Best for: Foreigners and those needing highest loan margin (up to 95%)
Compare UOB ratesAdvantages
- •HomeSmart package with up to RM50,000 upfront costs waived
- •SmartMortgage with flexible redraw facility
- •Amanah Home-i Islamic financing option
- •Excellent for expats and international professionals
Considerations
- •Higher base rates than local banks
- •Minimum income RM10,000/month
- •Limited to urban areas
Best for: Expats, international professionals, and those wanting costs waived upfront
Compare HSBC ratesAdvantages
- •Lowest standard Islamic refinancing rate at 3.80%
- •Fully Shariah-compliant Baiti Home Financing
- •Good for those who prefer Islamic banking principles
- •No compounding interest structure
Considerations
- •Longer approval process
- •Stricter property requirements
- •Limited flexi-loan options
Best for: Those seeking the lowest Islamic refinancing rate with Shariah compliance
Compare Bank Islam ratesAdvantages
- •Excellent rates for government servants and cooperative members
- •100% Islamic financing (Shariah-compliant)
- •Lower processing fees than commercial banks
- •Flexible for civil servants with lower income
Considerations
- •Primarily for cooperative members and government servants
- •Slower processing times
- •Limited product options compared to commercial banks
Best for: Government servants and cooperative members seeking Islamic financing
Compare Bank Rakyat ratesAdvantages
- •100% Islamic financing with Musharakah Mutanaqisah concept
- •Transparent pricing structure
- •Good for smaller loan amounts
- •Flexible for first-time homebuyers refinancing
Considerations
- •Higher profit rates than competitors
- •Limited branch network
- •Slower processing times
Best for: Those prioritizing Islamic banking with Musharakah Mutanaqisah structure
Compare Bank Muamalat ratesAdvantages
- •Fixed rate throughout loan tenure (no OPR fluctuation)
- •Up to 100% financing for government servants
- •No lock-in period or early settlement penalty
- •Lower monthly instalments with longer tenure options
Considerations
- •Only available to government servants
- •Fixed rate may be higher than variable rates during low OPR
- •Longer processing time (2-3 months)
Best for: Government servants who want rate certainty with no lock-in penalty
Compare LPPSA ratesHow We Ranked These Banks
Our ranking methodology considers 5 key factors to give you an objective comparison:
Interest Rates
Base rate + spread, comparing effective rates across similar loan amounts and tenures.
Approval Flexibility
DSR limits, income requirements, acceptance of various employment types, and track record with refinancing applications.
Loan Features
Lock-in period, penalty structures, flexi-loan options, and additional features like redraw facilities.
Processing Speed
Average time from application to disbursement based on customer feedback and industry data.
Customer Experience
Ease of application, documentation requirements, and post-approval support.
*Last updated: January 2026. Rates and policies may change without notice.
Best Bank for Your Situation
Different banks excel in different areas. Use this quick reference to find the best bank for your specific needs:
| Your Situation | Best Bank | Why |
|---|---|---|
| Lowest interest rate | Public Bank | Consistently competitive rates, often 0.1-0.2% lower |
| Cash-out refinancing | Maybank | Higher margin (up to 90%), flexible cash-out policies |
| Self-employed | CIMB | More flexible income assessment, accepts business owners |
| High DSR (60-70%) | Hong Leong | Higher DSR ceiling (up to 75%), case-by-case flexibility |
| Fast approval needed | RHB | Known for faster processing, ~2-3 weeks average |
| Cashback promotions | AmBank | Frequent promotional offers and upfront cash rebates |
| Government servants | Bank Rakyat / LPPSA | Special rates and up to 100% financing for civil servants |
| Islamic financing | Bank Islam | Fully Shariah-compliant with Baiti Home Financing |
| Large loan (RM500k+) | Standard Chartered | Premium packages, offset account, up to RM30k costs waived |
| Expats & foreigners | HSBC | International network, expat-friendly packages, costs waived |
| Fixed rate (no OPR risk) | LPPSA | Fixed 4% throughout tenure, no lock-in penalty |
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Refinancing Costs to Consider
Before refinancing, understand all the costs involved. While monthly savings can be significant, you need to ensure the savings outweigh the upfront costs over your intended holding period.
Refinancing Costs 2026
Updated: January 2026
| Item | Estimated Cost |
|---|---|
| Legal Fees | RM2,000 - RM5,000 |
| Valuation Fees | RM300 - RM1,000 |
| Stamp Duty | 0.5% |
| MRTA/MLTA | Varies |
| Disbursement Fee | RM200 - RM500 |
Tip: Many banks offer packages that waive or reimburse some of these costs. Ask about current promotions when comparing offers. Some banks also offer zero-cost refinancing packages with slightly higher interest rates.
Eligibility Requirements for Refinancing
Before applying, ensure you meet the basic eligibility criteria. Meeting these requirements doesn't guarantee approval, but failing to meet them will result in rejection.
Refinancing Eligibility 2026
Age
21 - 65 years
Minimum Income
RM 3,000
Maximum DSR
70%
Employment Period
6 months
Maximum LTV
90%
Step-by-Step Refinancing Process
The refinancing process typically takes 1-3 months from application to completion. Here's what to expect at each stage:
Compare Bank Rates
Research and compare refinancing rates from multiple banks. Consider factors beyond just the interest rate, such as lock-in period, processing fees, and customer service reputation.
Check Your Eligibility
Ensure you meet the basic requirements: age 21-65, minimum income, good credit score (above 650), and property must be completed. Most banks also require you to have owned the property for at least 1 year.
Gather Required Documents
Prepare all necessary documents including IC, payslips (3 months), bank statements (6 months), EPF statement, current loan statement, and property documents (S&P agreement, title).
Submit Your Application
Submit your refinancing application to your chosen bank(s). You can apply to multiple banks simultaneously to compare actual offers. Our service can help you apply to multiple banks at once.
Property Valuation
The bank will arrange for a property valuation by an approved valuer. The valuation determines your Loan-to-Value (LTV) ratio and maximum loan amount. Valuation typically costs RM300-500.
Loan Approval & Offer
Once approved, the bank will issue a Letter of Offer detailing the loan amount, interest rate, tenure, and terms. Review carefully before accepting. You have 7-14 days to accept.
Legal Process & Disbursement
Appoint a lawyer to handle the legal documentation. The new bank will settle your existing loan and disburse any cash-out amount. Start making payments to your new bank from the following month.
Documents Required for Refinancing
Having all documents ready before applying will speed up the process significantly. Here's a complete list of what you'll need:
Salaried Employee
- Salinan MyKad (depan & belakang)
- Slip gaji 3 bulan terkini
- Penyata bank 6 bulan terkini
- Borang EA / Penyata cukai
- Penyata KWSP
- Surat pengesahan majikan
- Geran rumah / Sales & Purchase Agreement
Self-Employed
- Salinan MyKad (depan & belakang)
- Penyata bank 6 bulan terkini (peribadi & syarikat)
- Borang B / Penyata cukai 2 tahun
- Sijil pendaftaran perniagaan (SSM)
- Profil syarikat
- Penyata untung rugi
- Geran rumah / Sales & Purchase Agreement
Common Refinancing Mistakes to Avoid
Avoid these common pitfalls that can cost you money or delay your refinancing:
1. Only comparing interest rates
A lower rate with higher fees might cost more overall. Calculate the total cost of refinancing including legal fees, valuation, and stamp duty. Use our calculator to see the full picture.
2. Ignoring lock-in penalties
If you might sell or refinance again within 3-5 years, lock-in penalties (2-3% of outstanding balance) can eat into your savings. Factor this into your decision.
3. Not checking your DSR first
Use our DSR Calculator before applying to avoid rejected applications. A rejection can affect your credit score and future applications.
4. Forgetting legal fees
Budget RM3,000-8,000 for legal and valuation fees. Some banks offer packages that subsidize these costs, so always ask about current promotions.
5. Applying to too many banks
Multiple applications can affect your credit score. Apply to 2-3 banks maximum, or use our free service to compare offers without multiple credit checks.