Al Rajhi Home Financing-I (Islamic)

Up to 35 years

Term Islamic financing

Fixed Profit Rate

0 years lock in period

Up to 90% margin

30 days approval

Borrowing RM Monthly Repayment

Profit Rate

How Long Year
max 35 Year
Flexi/Term Lock in Period Islamic or Conventional
All Flexi Term All Yes No All Islamic Conventional

Al Rajhi Home Financing-i

Get the home loan for low income workers - salary requirement only RM1500 per month - special tiered interest rate to help lower your moving costs

    • Up to 35 years
    • Term Islamic financing
    • Fixed Profit Rate
    • 0 years lock in period
    • Up to 90% margin of finance
    • 30 days approval

You Borrow

Estimated Profit Rate

more than RM50000

6.40% p.a.

  • *Effective profit rate will be determined by Al Rajhi Bank upon approval.


Fees & Charges

There are always fees but how much are they?

Late Penalty Fee - Any recovery cost including solicitor fees

Processing Fee - No Fee

Early Settlement Fee - Subject to terms of agreement if settled within first 5 years

Redemption Letter Fee - RM10.60 per request

Letter for EPF Withdrawal Fee - RM10.60 per request

Insurance Types - MRTT

*inclusive of 6% GST



Are you eligible for this Al Rajhi Bank home financing?

Minimum annual income - RM42000

Minimum age - 21 years old

Maximum age - 65 years old

Who can Apply - Malaysians

Frequently Asked Questions about Al Rajhi Home Financing-i

Things you might want to know


What is the Al Rajhi Home Financing-i?

Al Rajhi Home Financing-I is a fixed interest rate syariah compliant home loan that follows the Islamic concept of Bai BithamanAjil ( BBA).

The bank buys a property for you at the current market price, then sells it back to you at a marked up price price which you gradually pay in the form of installments until you finally own the property.

This home loan is strictly for completed properties valued at RM50000 or more. Maximum loan tenure is 25 years.

The bank interest is based on tiers that gradually increase over the years. If you include takaful and moving cost into your loan, the bank’s interest is 0.1% lower.

Years you pay moving cost you pay moving cost+takaful

1 – 10 years 6.50% 6.40%

11-15 years 6.85% 6.75%

16-20 years 7.35% 7.25%

21-25 years 7.75% 7.65%


What are the features and benefits of Home Financing-i?

If you’re the worrying kind, a fixed interest rate may be ideal because the interest rate is not pegged to the Base Financing Rate hence any movement in IBR will have zero effect on you!

Al Rajhi calculate repayments on 70:30 ratio principle, which means that 30% of your monthly installment will go toward paying the loan principal, 70%toward paying the interest. With this feature, you are paying back your loan principal faster and guess what? You will own your property faster too.

If you earn at least RM1500 a month, have no other debt commitments and a good credit history there's a good chance that you can be eligible for this loan. This is the lowest salary requirement for a home loan in Malaysia.



What are my obligations with this home loan?

For a start, you’re going to have a loan repayment to pay every month. If you default your loan for more than three months, you may face legal action and even foreclosure.

It would be best to be disciplined with your payments.


Can I pay extra cash onto my mortgage and reduce my principal?

No. Unfortunately you can't pay a lump sum, but unlike many other term home loans a portion of your monthly installment will be paid onto the principal straight away.


What other fees and charges do I have to look out?

You will have to foot the bill for standard stamp duty and legal fees since the bank doesn't bear zero moving cost (ZEC) for you. A property valuation is compulsory, this can be managed through the bank’s approved vendor.

The bank charged 3 months profit and the associated if you settle your loan earlier.


What kind of documents do I need for this home loan application?

Copy of Sales and Purchase Agreement

Booking Receipt

Last 6-12 months statement (for refinancing)

Valuation report (valuers must be approved by the bank)

If you are an employee earning a salary

Copy of NRIC (front and back)

Latest 3 months salary slip or Letter of Employment

Latest 3 months bank statement

Sales and purchase agreement or booking receipt


If you are self-employed

Copy of NRIC (front and back)

Latest 6 months salary slip

Form 9, 24 & 49

Business Registration form

Copy of income tax and proof of tax payment

Sales and purchase agreement or booking receipt