Looking for the best housing loan in Malaysia? With so many banks offering different packages, interest rates, and loan tenures, choosing the right one can feel overwhelming. That’s why we’ve created this housing loan comparison guide for 2025—so you can see the latest rates, learn how to compare packages, and even understand how OPR affects home loan rates.
If you’re planning to buy a home, refinance an existing loan, or simply want to check your monthly instalments, this guide will help you make the right decision.
Latest Housing Loan Rates in Malaysia (2025)
Here’s a quick comparison of some popular home loan packages in Malaysia. Use this as a starting point before applying or talking to a bank officer.
| Bank Name | Interest / Profit Rate (p.a.) | Loan Tenure | Monthly Instalment* | Loan Type |
|---|---|---|---|---|
| Maybank | From 3.50% | Up to 35 years | Based on loan amount | Conventional |
| CIMB | From 3.55% | Up to 35 years | Based on loan amount | Conventional |
| Hong Leong Bank | From 3.60% | Up to 35 years | Based on loan amount | Conventional |
| Bank Islam Baiti-i | From 3.80% | Up to 35 years | Based on loan amount | Islamic Financing |
| Public Bank | From 4.20% | Up to 35 years | Based on loan amount | Semi-Flexi Loan |
*Use our House Loan Calculator Malaysia to get accurate monthly repayments based on your loan amount, tenure, and rate.
How to Choose the Best Housing Loan in Malaysia
When comparing housing loans, keep these factors in mind:
1. Interest Rate: Fixed vs Floating
- Fixed-rate loans give you predictable monthly instalments for the entire tenure.
- Floating-rate loans change with the bank’s Base Rate (BR) or Standardised Base Rate (SBR), which is influenced by OPR (Overnight Policy Rate).
If OPR drops, your floating-rate loan gets cheaper. If OPR goes up, so do your monthly repayments.
2. Loan Tenure
- Malaysia allows housing loan tenures of up to 35 years or until the borrower reaches age 70, whichever comes first.
- Longer tenures reduce monthly payments but increase total interest paid.
3. Loan Type: Conventional vs Islamic Financing
- Conventional loans charge interest on the principal.
- Islamic home financing uses a profit rate concept, following Shariah principles.
Both have competitive packages; your choice depends on personal preference and eligibility.
4. Flexibility & Early Settlement
Some banks offer full-flexi loans where you can make extra payments anytime to reduce interest costs. Others may charge fees for early settlement.
OPR and Housing Loan Rates: Why It Matters
The Overnight Policy Rate (OPR) set by Bank Negara Malaysia directly affects housing loan interest rates.
- When OPR decreases, banks usually reduce their BR/SBR, making home loans cheaper.
- When OPR increases, interest rates rise, leading to higher monthly instalments.
Staying updated on OPR changes helps you time your loan application or refinancing decision better.
Housing Loan Eligibility & DSR Calculator
Before applying, check your Debt Service Ratio (DSR)—the percentage of your monthly income spent on loan repayments.
- Most banks in Malaysia prefer a DSR below 60% for housing loan approval.
- You can use our DSR & Loan Eligibility Calculator to see how much you can borrow safely.
Refinancing Opportunities in 2025
If interest rates drop or you find a better loan package, refinancing can help you save money.
Example:
- A RM500,000 loan at 3.80% switched to 3.50% can save you thousands of ringgit over the tenure.
Refinancing also allows you to adjust your loan tenure or switch from a conventional loan to Islamic financing.
City-Wise Housing Loan Comparisons
Housing loan rates don’t usually vary by state, but property prices and bank promotions do.
- Kuala Lumpur: Higher property prices → bigger loan amounts needed.
- Penang: Popular for retirement homes → flexible financing options available.
- Johor: Close to Singapore → cross-border buyers may need different packages.
FAQs About Housing Loan Comparisons in Malaysia
1. What is the best housing loan in Malaysia right now?
It depends on your loan amount, tenure, and whether you prefer fixed or floating rates. Maybank, CIMB, and Bank Islam offer competitive packages in 2025.
2. How does OPR affect housing loan rates?
When OPR goes down, floating-rate loans become cheaper. When it goes up, monthly repayments increase.
3. What’s the maximum tenure for home loans in Malaysia?
Up to 35 years or until the borrower turns 70.
4. What is the minimum down payment for a house in Malaysia?
Usually 10% for the first two properties; more for additional properties.
5. Are housing loan rates in Malaysia fixed or floating?
Both options exist. Floating rates follow OPR changes; fixed rates stay constant.
Fredrick is the creator behind houseloancalculatormalaysia.online, dedicated to helping Malaysians easily understand and calculate their home loan payments. With a focus on accuracy and simplicity, Fredrick develops reliable tools and clear guides to empower users to make informed financial decisions. His goal is to provide trustworthy, user-friendly resources that save time and reduce confusion in the complex world of home loans.