✓ Rates verified from bank sources · May 2026
Best home loan rate in Malaysia 2026: Bank of China Malaysia at 3.55% p.a. (up to 95% margin, 3-year lock-in). Best major local bank: CIMB Flexi Home Financing-i at 4.10% p.a. All home loan rates are reducing balance — the rate shown is the true annual cost (EIR). No conversion needed. SBR is currently 1.85% p.a.
Lowest Rate
3.55% p.a.
Bank of China Malaysia
Best Local Bank
4.10% p.a.
CIMB Flexi Home Financing-i
SBR (Base Rate)
1.85% p.a.
Bank Negara Malaysia
🏠 Home loan rates = true EIR. Unlike car and personal loans, home loan rates are reducing balance — the rate shown is exactly what you pay annually on your outstanding balance. A 4.10% home loan rate = 4.10% EIR. No conversion needed.
🏠 Home Loan Rates — Malaysia 2026
RM 300,000 property loan, 30–35 year tenure. All rates are reducing balance. Source: LoanStreet.com.my + bank websites, May 2026.
| Bank | Product | Rate (p.a.) | Max Margin | Lock-in |
|---|---|---|---|---|
| Bank of China (M) | BOC Home Loan (Flexi) | 3.55%LOWEST | 95% | 3 years |
| Standard Chartered | MortgageOne™ / Saadiq HomeOne-i | 3.90% | 90% | None |
| CIMB Bank | Flexi Home Financing-i | 4.10% | 95% | 5 years |
| Bank Islam | Baiti Home Financing | 4.15% | 90% | 3 years |
| Public Bank | Housing Loan / PB Home Flexi-i | 4.25% | 90% | 3 years |
| Maybank | FlexiOwn / Home Flexi-i | 4.40% | 90% | 3–5 years |
| RHB Bank | My1 Full Flexi Home Loan | 4.70% | 90% | 3 years |
| Alliance Bank | Conventional Home Financing | 5.50% | 90% | 3 years |
Rates are reducing balance — direct EIR comparison is valid. Lock-in penalty: typically 2–3% of outstanding loan if redeemed early. Actual rate depends on borrower profile and property type.
What You Need to Know
Flexi vs term loan: A full flexi home loan links a current account to your mortgage. Extra cash you park there reduces your outstanding balance daily, cutting interest. You can withdraw it anytime. Standard Chartered MortgageOne is the best full flexi option and also the only major bank with no lock-in period.
Lock-in period: Most banks lock you in for 3–5 years. Refinancing or full redemption during this window costs 2–3% of the outstanding loan — on RM 400,000, that’s RM 8,000–12,000. If you plan to refinance within 5 years, Standard Chartered’s zero lock-in is worth considering even at a slightly higher rate.
Approval basics: First two properties: up to 90% financing. Third property onwards: capped at 70% by Bank Negara Malaysia rules. DSR (total monthly repayments ÷ net income) must stay below 60–70%. A clean CCRIS/CTOS record and stable employment (min. 6 months–1 year) are essential. Self-employed need 2 years of business accounts.
Frequently Asked Questions
The lowest home loan rate is 3.55% p.a. from Bank of China Malaysia. Among the top 5 major local banks, CIMB is the best at 4.10% p.a., followed by Public Bank at 4.25% and Maybank at 4.40%. All home loan rates are reducing balance — the rate shown equals EIR, no conversion needed.
The Standardised Base Rate (SBR) is currently 1.85% p.a. (May 2026), set by Bank Negara Malaysia based on the OPR. Variable rate home loans are priced as SBR + spread. When BNM cuts OPR by 0.25%, your home loan rate decreases by the same amount within 1–2 months — saving roughly RM 60–120/month on a RM 500,000 loan.
Choose a full flexi loan if you expect to receive bonuses or irregular large sums, or want to reduce interest without locking in prepayments. The interest saving from parking RM 50,000 in a flexi account on a RM 400,000 loan at 4.10% is about RM 2,050/year. If you have steady income and won’t prepay, a term loan with a lower rate may be simpler.
Up to 90% of the property value for your first two properties (10% down payment). Third property: maximum 70%. Approval amount depends on DSR — all monthly repayments including the new loan must be ≤60–70% of net monthly income. Rough guideline: every RM 1,000 net income supports approximately RM 100,000–120,000 in home loan (at 4.10%, 30 years).
Most home loans have a 3–5 year lock-in period. Refinancing or full redemption during lock-in triggers a penalty of 2–3% of the outstanding loan amount. Standard Chartered MortgageOne is the only major bank with zero lock-in — ideal if you’re unsure about your plans or want to refinance soon.
Standard: MyKad, 3 months payslips, 3 months bank statements, EPF Form 6 or i-Akaun, employment confirmation, Sale & Purchase Agreement or booking receipt. Self-employed: BE form, 6 months business bank statements, SSM registration, audited accounts. Additional: property valuation report (arranged by bank), MRTA insurance quote.
Rates sourced from LoanStreet.com.my and bank websites, May 2026. All rates are indicative — actual rate depends on borrower profile and bank’s offer. SBR per Bank Negara Malaysia. rates.my is a comparison platform, not a financial adviser.