1. What is Home Loan Interest Rate?

The home loan interest rate in Malaysia is the percentage charged by banks for borrowing money to purchase property. Rates typically range from 2.5% to 4.5% p.a. depending on the bank, loan type (conventional or Islamic), and market conditions.

2. How Does the Calculator Work?

The calculator uses the standard loan amortization formula:

Where:

• \( P \) = Loan Principal Amount (RM)
• \( r \) = Monthly Interest Rate (Annual Rate ÷ 12)
• \( n \) = Loan Tenure in Months

3. Current Malaysian Home Loan Rates

As of 2023:

• Maybank Islamic HouzKEY: 2.88% p.a.
• CIMB Islamic Home Financing: From 3.05% p.a.
• Public Bank Home Loan: From 3.45% p.a.
• RHB Conventional Home Loan: From 3.65% p.a.

Rates vary based on BLR/BR, loan amount, and tenure.

4. Using the Calculator

Tips: Enter loan amount in RM, annual interest rate (e.g., 2.88 for 2.88%), and loan tenure in years. The calculator will show monthly payments, total repayment amount, and total interest payable.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between conventional and Islamic home loans?
A: Conventional loans charge interest, while Islamic loans use profit rates based on Shariah-compliant concepts like Bai' Bithaman Ajil (deferred payment sale).

Q2: What is the maximum home loan tenure in Malaysia?
A: Typically 35 years or until age 65-70, whichever comes first.

Q3: How does BLR/BR affect my home loan rate?
A: Base Lending Rate (BLR) or Base Rate (BR) is the reference rate banks use to determine your final interest rate (BLR/BR + spread).

Q4: What is the typical loan margin in Malaysia?
A: Usually up to 90% of property value for first two properties, lower for subsequent properties.

Q5: Are there other costs besides interest?
A: Yes, including legal fees, stamp duty, valuation fees, and MRTA/MLTA insurance (optional).