What is the best refinance rate in Malaysia 2026?

The best refinance rate in Malaysia as of February 2026 is 2.88% from Maybank Islamic HouzKEY, though this is a rent-to-own product with restrictions. For standard refinancing, Bank Islam offers 3.80% and Standard Chartered offers 3.90%.

What is the current SBR rate in Malaysia?

The Standardised Base Rate (SBR) in Malaysia is currently 2.75% as of February 2026. All banks use the same SBR set by Bank Negara Malaysia. Your refinance rate equals the SBR plus the bank's spread (margin).

Which bank offers lowest home loan interest rate?

For standard home loan refinancing, Bank Islam offers the lowest rate at 3.80%, followed by Standard Chartered at 3.90% and Al Rajhi Bank at 3.90%. Maybank Islamic HouzKEY offers 2.88% but operates as a rent-to-own program.

Are refinance rates negotiable?

Yes, refinance rates are negotiable in Malaysia. Banks advertise a range (e.g., 3.90% to 4.50%) and the actual rate depends on your profile. You can negotiate by comparing offers from multiple banks, having a good credit score, or bundling products like insurance.

What is a good refinance rate in Malaysia?

As of 2026, a good refinance rate in Malaysia is anything below 4.00%. Rates between 3.80% to 4.20% are considered competitive. If you're currently paying above 4.50%, refinancing at any of these rates will result in significant savings.

How often do refinance rates change?

Refinance rates in Malaysia change when Bank Negara adjusts the Overnight Policy Rate (OPR), which is reviewed 6 times a year. Banks may also adjust their spreads independently. The OPR has been stable at 2.75% since 2023.

Fixed or variable rate for refinancing?

Most Malaysian refinance products use variable rates tied to the SBR. Fixed rate packages are available but usually come at a higher rate (0.3-0.5% more). Variable rates are recommended when OPR is expected to stay stable or decrease.

Can I get a lower rate than advertised?

Yes. Advertised rates are usually the minimum available for the best profiles. However, during promotional periods or through a mortgage broker, you may access special rates. Negotiating with competing offers from other banks is also effective.

What affects my refinance interest rate?

Your refinance rate depends on: loan amount (higher = potentially better), property type and location, Debt Service Ratio (DSR), employment type, credit history (CCRIS/CTOS), and your relationship with the bank.

Will refinance rates go up in 2026?

Bank Negara Malaysia is expected to maintain the OPR at 2.75% throughout 2026, meaning refinance rates should remain stable. However, global economic conditions could influence rate decisions. It's a good time to lock in current rates.

What is the current rate for refinancing your home in Malaysia?

Refinancing rates in Malaysia range from 2.88% to 4.50% as of February 2026. Standard refinance rates are 3.80% to 4.35%. The lowest standard rate is Bank Islam at 3.80%.

Is it worth refinancing a home loan?

Yes, if you can get a rate at least 0.5% lower than your current rate and have more than 10 years remaining. Typical savings are RM200-500 per month.

Which bank has the lowest interest rate for housing loans in Malaysia?

Maybank Islamic HouzKEY offers 2.88% but has restrictions (rent-to-own). For standard refinancing, Bank Islam offers 3.80% and Standard Chartered offers 3.90%.

Which bank gives 7% interest on a home loan?

No major Malaysian bank offers 7% on home loans. Current rates range from 2.88% to 4.50%. If you're paying 7%, you should refinance immediately as you could save thousands per month.

Refinance Home Loan Rates Malaysia 2026

Compare Latest Refinance Home Loan Rates — Updated February 2026

Find the lowest refinancing rates from 15+ Malaysian banks

Rates from

2.88%

SBR Rate

2.75%

Banks Compared

15+

Updated

Monthly

QUICK ANSWER

Home loan refinancing rates in Malaysia currently range from 2.88% to 4.50% p.a. as of February 2026. The Standardised Base Rate (SBR) is 2.75%. The lowest rates are offered by Maybank Islamic HouzKEY (2.88%), Bank Islam (3.80%), and Standard Chartered (3.90%). Rates depend on your loan amount, tenure, and credit profile.

Current Refinance Rates Comparison 2026

Complete comparison of refinancing rates from all major Malaysian banks, sorted by lowest rate.

#	Bank	Product	Effective Rate	Lock-in	Max Margin	Type
1	Maybank Islamic	HouzKEY	2.88%	5 years	100%	Islamic
2	Bank Islam	Baiti Home Financing-i	3.80%	3 years	90%	Islamic
3	Bank Islam	Wahdah Home Refinancing-i	3.80%	3 years	90%	Islamic
4	Al Rajhi Bank	Home Financing-i	3.90%	3 years	90%	Islamic
5	Standard Chartered	MortgageOne	3.90%	3 years	90%	Conventional
6	Standard Chartered	Saadiq My HomeOne-i	3.90%	3 years	90%	Islamic
7	RHB	First Home Mortgage	4.10%	3 years	90%	Conventional
8	Alliance Bank	Conventional Home Loan	4.11%	3 years	90%	Conventional
9	Standard Chartered	MortgageOne Zero Cost	4.20%	3 years	90%	Conventional
10	Public Bank	MORE Plan / 5 Home Plan	4.22%	3 years	90%	Conventional
11	Maybank Islamic	Commodity Murabahah	4.25%	3 years	90%	Islamic
12	HSBC	HomeSmart	4.30%	3 years	85%	Conventional
13	Maybank	Maxi Home / Flexi	4.35%	3 years	90%	Conventional
14	CIMB	HomeLoan / HomeFlexi	4.35%	3 years	90%	Both
15	Affin Islamic	Home Invest-i	4.36%	3 years	90%	Islamic
16	Hong Leong	Housing Loan	4.38%	3 years	90%	Both
17	AmBank	Home Loan	4.40%	3 years	90%	Both
18	UOB	Home Loan	4.61%	3 years	95%	Both

Rates as of February 2026. Subject to change. Actual rate depends on credit profile and loan amount. Click on any bank name to view detailed review and application guide.

Understanding Refinance Rates

What is SBR (Standardised Base Rate)?

Set by Bank Negara Malaysia — the central bank determines the SBR as a transparent benchmark for all banks.
Currently 2.75% as of February 2026, unchanged since May 2023.
All banks use the same SBR — the difference in rates comes from each bank's spread (margin added on top of SBR).
Your rate = SBR + bank's spread. For example, SBR 2.75% + spread 1.15% = 3.90% effective rate.
Expected to remain at 2.75% throughout 2026 based on current economic outlook.

Fixed vs Variable Rates

Most Malaysian refinance rates are variable — tied to SBR, meaning your rate changes when Bank Negara adjusts the OPR.
Fixed rate packages are available but usually come at 0.3-0.5% higher than variable rate equivalents.
With OPR expected to stay stable in 2026, variable rates are generally recommended for most refinancers.

Effective Rate vs Advertised Rate

Advertised Rate

"From 2.88%"

Best-case scenario for ideal profiles

Effective Rate

What you actually pay

Depends on your profile and loan details

Always ask for your effective rate quote — not just the advertised rate. Request a formal Letter of Offer with the confirmed rate before committing.

Lowest Refinance Rates by Category

Best rates for different borrower needs and profiles.

Overall Lowest

Maybank Islamic HouzKEY

2.88%

View details

Lowest Standard Refinance

Bank Islam

3.80%

View details

Lowest Conventional

Standard Chartered

3.90%

View details

Best for High Margin (95%)

UOB

4.61%

View details

Best for Govt Servants

Bank Rakyat

~4.20%

Page coming soon

Best for High DSR

Hong Leong

4.38%

View details

How Much Can You Save?

Example savings calculation for a typical Malaysian homeowner.

Scenario

Loan AmountRM500,000

Remaining Tenure20 years

Current Rate4.75%

New Rate3.90%

Your Savings

Monthly Savings

RM235

Total Savings (20 years)

RM56,400

Calculate Your Exact Savings

Factors That Affect Your Rate

Understanding these factors helps you secure the best possible rate.

Loan Amount

Higher loan amounts may qualify for better rates due to higher profit potential for the bank.

Property Type

Landed properties often get better rates than high-rise condos. Freehold preferred over leasehold.

Your DSR

Lower Debt Service Ratio means lower risk, which can translate to better rate offers.

Employment Type

Salaried employees typically get better rates than self-employed applicants.

Credit Score

Clean CCRIS and CTOS records can qualify you for the bank's best advertised rates.

Bank Relationship

Existing customers with salary accounts or credit cards may get preferential rates.

About HouzKEY's 2.88% Rate

Maybank Islamic HouzKEY at 2.88% is a rent-to-own program with specific restrictions — you don't own the property outright during the financing period. It's not a standard refinancing product. For standard refinancing, the lowest rate is Bank Islam at 3.80%.

Your DSR (Debt Service Ratio) is a key factor in qualifying for the best rates. Check if you qualify with our DSR calculator →

How to Get the Best Refinance Rate

Compare multiple banks

Apply to at least 3-5 banks to get competing offers you can negotiate with.

Negotiate the rate

Rates are not fixed. Banks have room to lower the spread, especially for good profiles.

Bundle products

Agree to take insurance, credit cards, or salary accounts for a rate discount.

Check for promotions

Banks run refinancing campaigns with special rates, especially end of quarter.

Use a mortgage broker

Brokers have access to unpublished rates and can negotiate on your behalf.

Improve your DSR first

Pay off credit card debt or personal loans before applying to improve your profile.

OPR & Rate Outlook 2026

Current OPR

2.75%

Unchanged since May 2023

2026 Outlook

Stable

Expected to remain at 2.75%

Bank Negara Malaysia is expected to maintain the OPR throughout 2026 based on stable economic conditions.
Refinance rates should remain stable unless global conditions change significantly.
This is a good time to lock in current rates before any potential increases.

Learn more: When is the best time to refinance?

Refinance Rate Calculator

See exactly how much you'll save with current rates. Enter your loan details and compare monthly payments across different rates.

Open Savings Calculator

Rate Comparison by Loan Amount

Recommended banks and estimated monthly payments based on loan size.

Loan Amount	Recommended Bank	Rate	Monthly Payment
RM200,000	Bank Islam	3.80%	RM1,032
RM300,000	Bank Islam	3.80%	RM1,548
RM400,000	Standard Chartered	3.90%	RM2,108
RM500,000	Standard Chartered	3.90%	RM2,635
RM700,000	Public Bank	4.22%	RM3,810
RM1,000,000	CIMB	4.35%	RM5,548

Based on 25-year tenure. Rates may vary by loan amount tier. Use our calculator for exact figures.

Frequently Asked Questions

Get Your Personalized Rate Quote

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Last Updated: February 2026

Rates change frequently. For the most accurate rate based on your profile, request a .

All Bank Reviews

Maybank CIMB Public Bank RHB Hong Leong AmBank Bank Islam UOB Standard Chartered HSBC

Refinance Home Loan Rates Malaysia 2026

Current Refinance Rates Comparison 2026

Understanding Refinance Rates

What is SBR (Standardised Base Rate)?

Fixed vs Variable Rates

Effective Rate vs Advertised Rate

Lowest Refinance Rates by Category

How Much Can You Save?

Scenario

Your Savings

Factors That Affect Your Rate

Loan Amount

Property Type

Your DSR

Employment Type

Credit Score

Bank Relationship

How to Get the Best Refinance Rate

Compare multiple banks

Negotiate the rate

Bundle products

Check for promotions

Use a mortgage broker

Improve your DSR first

OPR & Rate Outlook 2026

Refinance Rate Calculator

People Also Ask

What is the current rate for refinancing your home in Malaysia?

Is it worth refinancing a home loan?

Which bank has the lowest interest rate for housing loans in Malaysia?

Which bank gives 7% interest on a home loan?

Rate Comparison by Loan Amount

Frequently Asked Questions

What is the best refinance rate in Malaysia 2026?

What is the current SBR rate in Malaysia?

Which bank offers lowest home loan interest rate?

Are refinance rates negotiable?

What is a good refinance rate in Malaysia?

How often do refinance rates change?

Fixed or variable rate for refinancing?

Can I get a lower rate than advertised?

What affects my refinance interest rate?

Will refinance rates go up in 2026?

Get Your Personalized Rate Quote

Get Your Free Refinancing Quote

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