Best Home Loans with Low Interest Rates in 2025 (Malaysia)
In 2025, several Malaysian banks offer competitive home loan packages. Here are the top choices with the lowest interest rates:
1. Maybank Islamic HouzKEY
๐ Interest Rate: As low as 2.88% (Islamic financing)
๐ Loan Tenure: Up to 20 years
๐ Monthly Repayment (RM500,000 loan for 20 years): Approx. RM2,468.74
๐ Key Features:
- 100% financing (no down payment required)
- Suitable for first-time homebuyers
- No penalty for early settlement
๐ Official Website: Maybank Islamic HouzKEY
2. Bank Islam Baiti Home Financing-i
๐ Interest Rate: As low as 3.8%
๐ Loan Tenure: Up to 20 years
๐ Monthly Repayment (RM500,000 loan for 20 years): Approx. RM2,679.72
๐ Key Features:
- Available for first-time and second-time homebuyers
- Choice of fixed or floating interest rate
- Includes mortgage insurance coverage
๐ Official Website: Bank Islam Baiti Home Financing-i
3. Standard Chartered MortgageOneโข
๐ Interest Rate: As low as 3.9%
๐ Loan Tenure: Up to 20 years
๐ Monthly Repayment (RM500,000 loan for 20 years): Approx. RM2,703.26
๐ Key Features:
- Allows borrowers to offset loan interest with savings
- Suitable for new homes, sub-sale properties, or refinancing
- Flexible repayment period
๐ Official Website: Standard Chartered MortgageOneโข
4. OCBC Home Loan
๐ Interest Rate: As low as 3.8%
๐ Loan Tenure: Up to 35 years or age 70 (whichever comes first)
๐ Key Features:
- Offers redraw facility, allowing borrowers to withdraw excess payments
- Available for new home purchases and refinancing
- Allows extra repayments to reduce interest costs
๐ Official Website: OCBC Home Loan
5. HSBC HomeSmart
๐ Interest Rate: As low as 4.3%
๐ Loan Tenure: Up to 20 years
๐ Monthly Repayment (RM500,000 loan for 20 years): Approx. RM2,798.57
๐ Key Features:
- Allows savings balance to offset loan interest
- Suitable for new home purchases, sub-sale properties, or refinancing
- Flexible monthly repayment options
๐ Official Website: HSBC HomeSmart
How to Choose the Best Home Loan for You
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Interest Rate โ Lower rates mean lower overall loan costs.
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Loan Tenure โ Longer tenure reduces monthly repayment but increases total interest paid.
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Flexibility โ Look for features like early repayment without penalties and redraw facilities.
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Additional Costs โ Factor in processing fees, legal fees, stamp duty, and insurance.
๐ก Tip: Use bank loan calculators to compare different mortgage plans based on your income and financial goals, or consult a mortgage advisor for personalized advice.
Note: Monthly repayment amounts are approximate and based on a RM500,000 loan over 20 years. Actual repayments may vary based on the loan amount, tenure, and prevailing rates.
For personalized advice and the most current rates, it’s recommended to consult directly with the respective banks or use online comparison tools to evaluate the best home loan options tailored to your financial needs.
