Free RM25Calculate monthly instalments for Islamic home financing. Profit rates from 3.95% p.a. — currently cheaper than conventional home loans.
Musharakah Mutanaqisah (MM) reducing balance method
Bank Islam from 3.95% · Maybank Islamic from 4.10%
Monthly Instalment
RM 2,148.37
per month for 30 years
Financing Amount
RM 450,000
Down Payment
RM 50,000 (10%)
Total Profit Paid
RM 323,413
Total Payment (Financing + Profit)
RM 773,413
Calculated using MM reducing balance. Actual rate subject to bank approval and credit profile.
Islamic at 4.00% vs Conventional at ~4.40% (Islamic is ~0.4% cheaper on average in 2026)
Islamic Home Financing
RM 2,148.37/mo
Profit rate 4.00% p.a.
Conventional Home Loan
RM 2,253.42/mo
Interest rate ~4.40% p.a.
Islamic saves RM 105.06/month — RM 37,820 over 30 years
Indicative only. Use the calculator above for your exact figures.
| Property Price | Down Payment (10%) | Financing Amount | Monthly |
|---|---|---|---|
| RM 350,000 | RM 35,000 | RM 315,000 | RM 1,503.86 |
| RM 500,000 | RM 50,000 | RM 450,000 | RM 2,148.37 |
| RM 700,000 | RM 70,000 | RM 630,000 | RM 3,007.72 |
| RM 1,000,000 | RM 100,000 | RM 900,000 | RM 4,296.74 |
* Indicative — contact bank directly for your personalised rate.
| Bank | Contract | Profit Rate | Max Tenure |
|---|---|---|---|
| Bank IslamLowest in Malaysia | Musharakah Mutanaqisah | from 3.95% | 35 years |
| Al Rajhi Bank | Tawarruq | from 3.90%* | 35 years |
| Public Islamic Bank | MM / Tawarruq | from 3.90%* | 35 years |
| RHB Islamic | Musharakah Mutanaqisah | from 4.00%* | 35 years |
| AmBank Islamic | MM | from 4.00%* | 35 years |
| CIMB Islamic | Musharakah Mutanaqisah | from 4.05%* | 35 years |
| Hong Leong Islamic | MM / Tawarruq | from 4.05%* | 35 years |
| Maybank IslamicFlexi option | Commodity Murabahah | from 4.10% | 35 years |
All rates are variable and linked to BNM OPR. Source: Bank Islam, Maybank Islamic — verified May 2026.
Islamic home financing is a Shariah-compliant alternative to conventional mortgages. Instead of charging interest (riba), the bank and customer enter a co-ownership arrangement. The dominant structure in Malaysia today is Musharakah Mutanaqisah (MM):
Verdict: Islamic financing is currently cheaper than conventional in Malaysia
In 2026, Islamic home financing profit rates start from 3.95% vs conventional interest rates from ~4.35%. On a RM500k property over 30 years, that’s a saving of roughly RM120–200/month and RM43,000–72,000 in total. Open to all Malaysians regardless of religion.
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Monthly DCA growth at 10% p.a. (S&P 500 hist avg)
| Monthly | 10 yrs | 20 yrs | 30 yrs |
|---|---|---|---|
| RM300/mo | RM61k | RM228k | RM678k |
| RM500/mo | RM102k | RM380k | RM1.13M |
| RM531/mo | RM109k | RM404k | RM1.2M |
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Monthly DCA → RM1M at 8% p.a.
| Monthly | 10 yrs | 20 yrs | 30 yrs |
|---|---|---|---|
| RM300/mo | RM55k | RM177k | RM449k |
| RM500/mo | RM91k | RM297k | RM749k |
| RM670/mo | RM122k | RM397k | RM1.0M |
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