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Writer's pictureAdeeb Ul Mulk

BANK ISLAM HOUSING LOAN-PROPERTY FINANCING-I (TAWARRUQ)

Updated: Nov 14

Benefits & Features

  • Under construction / completed house

  • High Margin of financing up to 90% excluding:

    • Mortgage Reducing Term Takaful (MRTT) / Mortgage Level Term Takaful (MLTT) – (compulsory)

    • HOT (Houseowner/Householder Takaful Plan) – (if applicable)

    • Stamp Duty

    • Legal Fees

    • Valuation Fees

  • Financing Tenure of up to 35 years or age 70, whichever is earlier

  • No lock-in period

  • No compounding elements

  • No processing fee

  • No penalty for early settlement


For more information please view many available loan solutions here



Property Value

Current Standardised Base Rate (SBR)is 3.00% per annum effective 5 May 2023)

RM300,000 and below

As low as SBR + 0.95% p.a. (EPR = 3.95% p.a.)

Above RM300,000

As low as SBR + 0.80% p.a. (EPR = 3.80% p.a.)

For more information on loans please click here to visit here


Eligibility Criteria

  • Malaysian Citizen

  • Age 18 and above

  • Not a bankrupt or have any legal action

  • Gainfully employed or Profitable business for at least 3 years

  • Minimum 1 year good payment track record

Required Document

  • Photocopy of identity card

  • Sales & Purchase Agreement

  • For salary earners:

    • Latest 3 months salary slips

    • Latest 3 months salary crediting account statements

    • Employer’s Confirmation Letter

    • Annual Income Statement/ BE Form / EPF statement

    • Any other supporting income documents

  • For Self Employed / Businessmen:

    • Company / Business Registration

    • Latest 6 months Bank Statements

    • Latest 3 years Financial Statements

    • Latest B Form

    • Any other supporting income documents



For more information on loans please click here to visit here

Shariah law is Baiti Home Financing-i

One option for financing that complies with Shariah law is Baiti Home Financing-i, also known as Property Financing-i (Tawarruq) by Bank Islam. Customers are able to obtain the homes of their dreams with the help of this financing package, which integrates numerous Shari'ah contracts. Customers can gain access to cash for home finance through the Tawarruq contract, which is key to this financing structure. Customers can buy goods from the bank with payment terms and then sell them to another party for cash under this arrangement. The acquisition of the property is subsequently funded with these funds. Baiti Home Financing-i allows people to realize their dream of homeownership while still adhering to Islamic standards, thanks to its incorporation of Tawarruq and other Shari'ah contracts.


Offering banking solutions based on Shariah principles, Islamic finance has become a shining example of ethical banking. As an example, one Shariah-compliant route to homeownership is offered by Baiti Home Financing-i (BHF-i) by Bank Islam, which uses a combination of Shariah contracts. This study explores BHF-i in detail, shedding light on its complex mode of operation that is influenced by the incorporation of different Shariah contracts.

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