Housing loan interest rates in Malaysia today: 9 banks compared

Housing loan interest rates today (November 2026)

Every bank's Standardised Base Rate (SBR) is 2.75%, the same as Bank Negara's Overnight Policy Rate (OPR), which has been 2.75% since 9 July 2025 and was last held on 3 September 2026; the next decision is due on 5 November 2026. A floating-rate home loan taken since August 2022 costs the SBR plus a spread fixed in your letter of offer, so an offer of SBR + 1.35% means you pay 4.10% a year today. Loans taken from 2015 to July 2022 are priced on the bank's own Base Rate (BR), and older loans on the Base Lending Rate (BLR), so the table shows all three, plus the lowest standard rate each bank advertises.

*Lowest advertised 'from' rate for a standard home loan on RinggitPlus, checked 4 November 2026; OCBC listed only an Islamic package, and special schemes or refinancing promotions can be advertised lower. The reference rates took effect on 11–15 July 2025, after the last OPR cut; the Maybank, Hong Leong and UOB rate pages still showed them on 4 November 2026.

The spread is what differs between banks and borrowers. Standard conventional home loans from these banks are advertised from about 4.10% to 4.75% a year, and each bank prices your loan on your income, credit record, the property and the loan amount. Islamic home financing is priced the same way on each bank's Islamic reference rates.

Buying an EXSIM home? We collect offers from panel bankers and check your eligibility for free, so you can compare the actual rate, lock-in and insurance before you book. Ask us on WhatsApp.

Which bank has the lowest home loan rate?

Going by advertised standard packages on 4 November 2026, the lowest of the nine banks were RHB First Home Mortgage from 4.10% (for a first home), Alliance Bank from 4.11% and Public Bank from 4.22%. Maybank and CIMB started from 4.35%, AmBank and UOB from about 4.5%, and Hong Leong from 4.75%.

On a RM450,000 loan over 35 years, the gap between those rates is real money:

An advertised rate is a starting point, not an offer. The rate in your letter of offer depends on your income, credit record (CCRIS and CTOS), the loan amount, the property and whether you take the bank's MRTA or other add-ons, so compare three or four actual offers side by side: the rate, the lock-in, the insurance and any legal-fee package.

OPR history and the next decision

A floating-rate loan moves with the OPR. This is how it has moved since it rose from its pandemic low of 1.75%:

Bank Negara's Monetary Policy Committee meets six times a year, and its last meeting of 2026 is on 5 November 2026. We update this page after every decision. Each 0.25% move changes the instalment on a RM450,000, 35-year loan by about RM68 a month.

How much the bank will lend

For a first or second home, banks typically finance up to 90% of the price. From a borrower's third housing loan, Bank Negara caps the loan-to-value ratio at 70%. The maximum tenure for property financing is 35 years, and banks also limit the tenure by your age, so older applicants may be offered a shorter term.

Affordability: the debt service ratio

Banks must assess whether you can afford the loan using a prudent debt service ratio (DSR): your total monthly repayments against your income after tax and EPF deductions. Bank Negara does not set one national cap; each bank sets its own threshold and also looks at your income type, credit history (CCRIS) and the property's valuation. As one published example, the government's SJKP scheme limits total repayments to 65% of gross monthly income.

Try the affordability calculator to see the price range your income supports, then ask us for a free eligibility check with a panel banker.

How much can you borrow on your salary?

Banks work from your net income (after tax and EPF) and count every monthly repayment you already have. As a rough guide, if a bank lets your repayments reach 60% of net income and you have no other loans, this is what you could borrow at 4.10% over 35 years:

Illustration only. Each bank sets its own limit, often lower for lower incomes, and deducts car loans, PTPTN, credit cards and other commitments. A joint loan counts both incomes.

A gross salary of RM5,000 is roughly RM4,300 a month after EPF, SOCSO and tax for a single person, which on these assumptions supports a loan of about RM574,000. For your own figure, try the affordability calculator or ask us for a free eligibility check.

How a rate change moves your instalment

The OPR was cut from 3.00% to 2.75% in July 2025 and has been held at every meeting in 2026. Because the SBR moves only with the OPR and your spread stays fixed, a change at Bank Negara passes straight through to your instalment.

How a 0.25% move changes the instalment on a RM450,000 loan (a RM500,000 home with 90% financing):

Monthly instalments for common loan amounts

The monthly instalment at 4.10% a year (SBR + 1.35%) on a fully disbursed conventional home loan, rounded to the nearest ringgit:

At 4.50%, nearer the top of the advertised range, a 35-year RM500,000 loan costs RM2,366 a month. With 90% financing, a RM450,000 loan buys a RM500,000 home and a RM720,000 loan a RM800,000 home. Your letter of offer sets your actual rate, and the loan calculator works out any other amount.

Term loan, flexi loan or fixed rate?

Term loan

The standard home loan: the same monthly instalment until the loan is repaid. You can usually pay extra to cut the balance, but you can't take that money back out. It is often the lowest-priced option.

Semi-flexi and full flexi

A semi-flexi loan lets you pay in extra and withdraw it later, usually on request. A full flexi loan is linked to a current account, so money you leave in it reduces the interest charged on the loan. Flexi loans can carry a slightly higher rate or a monthly fee, so they pay off mainly if you will keep spare cash in them.

Fixed or floating

Most Malaysian home loans float with the SBR. Fixed-rate packages are rare: the ones listed on RinggitPlus on 4 November 2026 started at 4.99% a year, well above floating rates, so a fixed rate buys certainty rather than a lower instalment.

Conventional or Islamic home financing

Islamic home financing uses a Shariah contract, such as Commodity Murabahah (tawarruq), Musharakah Mutanaqisah or Ijarah, and charges a profit rate instead of interest. Floating-rate Islamic financing also follows the SBR plus a spread, with a ceiling profit rate written into the contract. Monthly costs are often close to a conventional loan, and you don't have to be Muslim to take one, so compare both.

7 ways to get a lower rate

• Check your credit reports first. Banks read your CCRIS record from Bank Negara and usually a CTOS report. Clear late payments and close cards you don't use before you apply.
• Cut other repayments. Settling a car loan or a credit-card balance lowers your debt service ratio, which helps approval and can help pricing.
• Compare at least three banks. The advertised rates above differ by up to 0.65% a year, about RM180 a month on a RM450,000, 35-year loan.
• Use the developer's panel banks. For a new launch, panel banks often have packages for the project and already know it, which can speed up approval.
• Ask for the rate with and without MRTA. A lower rate tied to bundled insurance is not always cheaper overall.
• Weigh the lock-in. A slightly higher rate with a shorter lock-in can cost less if you may sell or refinance within a few years.
• Look at first-home and green packages. RHB First Home Mortgage is advertised from 4.10%, and eligible green-certified EXSIM homes can get RHB green financing of up to 110%.

Buying an EXSIM home? We collect real offers from panel bankers for free, so you can compare them before you book: ask us on WhatsApp.

During construction: progressive interest

For a new launch, the bank pays the developer in stages as construction milestones are certified, so in the early years you usually pay interest only on the amount released so far. Your full instalment starts once the loan is fully disbursed, typically around completion. Ask us for a schedule for the project you're considering.

Lock-in, refinancing and insurance

Most home loans carry a lock-in period of two to five years; settling or refinancing early usually costs 2–5% of the loan, as set out in the bank's product disclosure sheet. Mortgage insurance is optional but often bundled: MRTA cover reduces with the loan, is usually a single premium financed into the loan and can't be moved to another property, while MLTA has level cover, regular premiums and can be carried to your next home. Takaful equivalents are MRTT and MLTT. Fire insurance on the property is compulsory.

Refinancing. Once the lock-in ends, moving to a lower spread can cut your instalment, but count the costs first: legal and valuation fees for the new loan, stamp duty of 0.5% on the new loan agreement and any fee to discharge the old one. Some banks offer packages that cover part of these costs. Refinancing to take out cash also raises your debt, so borrow only what you need.

Help for first-time buyers

• SJKP (Housing Credit Guarantee Scheme). Open to Malaysian citizens aged 18 and above, including the self-employed and others without a fixed income, for a first home to live in. Standard SJKP financing goes up to RM500,000 including insurance, legal and valuation fees, for up to 35 years; SJKP MADANI finances up to RM360,000 and up to 100% of the price. Budget 2026 raised the scheme's guarantee capacity to RM20 billion, and Budget 2027 restates it.
• Tax relief on loan interest. For a first home bought between 1 January 2025 and 31 December 2027, you can claim relief on housing-loan interest of up to RM7,000 a year (home up to RM500,000) or RM5,000 a year (RM500,001–RM750,000) for the first three consecutive years of assessment.
• Stamp duty exemption. A first residential home worth up to RM500,000 pays no stamp duty on the transfer or the loan agreement for SPAs signed up to 31 December 2027. Budget 2027 proposes, for SPAs signed from 1 January 2027 to 31 December 2030, a full exemption up to RM500,000 and, for homes up to RM750,000, a full exemption on the first RM500,000 and 50% on the balance. Details in the buying-costs guide.

Using your EPF savings

Since May 2024, new EPF contributions are split 75% into Akaun Persaraan, 15% into Akaun Sejahtera and 10% into Akaun Fleksibel. Akaun Fleksibel can be withdrawn at any time in any amount from RM50, which can help with a down payment or fees. KWSP also allows housing withdrawals from Akaun Sejahtera, for example towards a purchase or to reduce a housing loan, subject to its current conditions; check them on kwsp.gov.my or ask us to walk you through it.

EXSIM × RHB: up to 110% green financing

In January 2026, EXSIM joined RHB's enhanced Green Home Financing Guarantee Programme. Buyers of eligible green-certified EXSIM homes can borrow up to 110%: the full property value plus up to 10% for MRTA/CLTA cover and other entry costs. Eligibility depends on the project, the unit and your own credit assessment, so ask us which units qualify.

Questions buyers ask

What is the housing loan interest rate in Malaysia now?

Every bank's SBR is 2.75%, and a new floating-rate loan costs the SBR plus a spread. On 4 November 2026, standard home loans at nine major banks were advertised from about 4.10% to 4.75% a year. Your own rate is the one in your letter of offer.

Which bank has the lowest housing loan interest rate?

Among advertised standard packages on 4 November 2026: RHB First Home Mortgage from 4.10% (for a first home), Alliance Bank from 4.11% and Public Bank from 4.22%. The best rate for you depends on your income, credit record and the property, so compare actual offers.

What is the difference between SBR, BR and BLR?

The SBR (Standardised Base Rate) is the reference rate for floating-rate loans taken from 1 August 2022 and equals the OPR at every bank. Loans from 2015 to July 2022 follow each bank's own Base Rate (BR), and older loans its Base Lending Rate (BLR).

Will housing loan rates go down?

Only if Bank Negara cuts the OPR. It has been 2.75% since 9 July 2025, and the next decision is due on 5 November 2026. Each 0.25% move changes the instalment on a RM450,000, 35-year loan by about RM68 a month.

How much housing loan can I get with a RM5,000 salary?

It depends on your net income and other debts. A RM5,000 salary is roughly RM4,300 after EPF, SOCSO and tax for a single person; with no other loans and a bank limit of 60% of net income, that supports a loan of about RM574,000 over 35 years at 4.10%. Ask us for a free eligibility check.

What is the maximum home loan tenure in Malaysia?

35 years for property financing. Banks also cap the tenure by your age, so older buyers may be offered a shorter term.

Can I get a 100% or 110% home loan?

Banks usually lend up to 90% for a first or second home and 70% from the third housing loan. SJKP MADANI can finance up to 100% (up to RM360,000) for eligible first-time buyers, and RHB's green financing for eligible EXSIM homes goes up to 110%, including MRTA/CLTA and other entry costs.

Is a flexi home loan better than a term loan?

Only if you will keep spare cash in it. A flexi loan cuts the interest on money you park in it but can cost a little more in rate or fees; if you won't use that, a term loan is usually cheaper.

Can I use EPF savings for the down payment?

Yes. Akaun Fleksibel can be withdrawn at any time from RM50, and KWSP allows housing withdrawals from Akaun Sejahtera, subject to its conditions.