Home Loan Types in Malaysia: Flexi vs Fixed Rate, Conventional vs Islamic, Loans for Foreigners and the Documents You Need
Two separate questions decide what kind of home loan you have in Malaysia: how the rate is set (floating or fixed, conventional or Islamic) and what happens to money you pay in advance (basic, semi-flexi or full flexi). They are independent of each other: an Islamic home financing package can be flexi too.
In one line: bank home loans are generally floating rate, tied to the SBR; the fixed-rate home financing this site could confirm is LPPSA’s 4% for civil servants. Flexi means you can take back what you overpay; Islamic financing follows Shariah contracts and carries a ceiling profit rate. Foreigners can borrow ringgit from Malaysian banks to buy property, with no amount cap from Bank Negara, though buying land alone is excluded. Expect to submit three months’ payslips, three to six months’ bank statements, your EPF and tax return, and the SPA or booking receipt.
What is a flexi loan? Basic vs semi-flexi vs full flexi
The three differ in what happens to money you pay the bank on top of your instalment.
| Type | How it works | Taking extra payments back | Bank (examples from official pages or disclosure sheets) |
|---|---|---|---|
| Basic / term loan | A set monthly instalment, with no linked current account | Depends on the package; check your letter of offer | RHB My1 Standard Term Home Loan; Alliance Basic Home Loan |
| Semi-flexi | Extra payments go into the loan account and reduce the balance interest is charged on; to take them back you ask the bank for a redraw | Yes, usually with a fee each time | Maybank Mortgage Term Loan: RM25 processing fee to redraw advance payments |
| Full flexi | The loan is linked to a current account, and the balance in that account offsets the principal for interest | Any time | Standard Chartered MortgageOne; Hong Leong MortgagePlus; Alliance FlexLink; Maybank Flexi Loan; RHB My1 Full Flexi |
Full flexi terms vary by bank; the Product Disclosure Sheet (PDS) governs. Some examples:
- Maybank Flexi Loan: savings, current account and loan in one account; excess payments can be withdrawn at any time without extra charges; RM5 monthly maintenance fee.
- Hong Leong MortgagePlus: the current account balance offsets the principal daily, up to 70% of the outstanding balance; the PDS states no lock-in period or early settlement fee.
- Alliance FlexLink: the offset is capped at 75% of the outstanding balance; withdrawals from the current account are free, withdrawals of advance payments carry a fee.
- Standard Chartered MortgageOne: money in the operating current account offsets the principal; interest is worked out daily on the balance after the offset; minimum individual or household income of RM8,000 a month.
What is a fixed rate loan, and where can you get one in Malaysia?
- Floating rate: the SBR plus the bank’s spread. The SBR follows only Bank Negara’s OPR, so when the OPR moves, your instalment moves.
- Fixed rate: the rate stays the same for the whole tenure or a set period, so the instalment does not change with the OPR.
| Bank / body | Product | Rate | Who can apply |
|---|---|---|---|
| LPPSA (Public Sector Home Financing Board) | Public sector housing financing | Fixed 4% a year on the monthly reducing balance | Eligible public sector employees; up to RM750,000 based on net income and fixed allowances |
| Cagamas | Fixed Rate Mortgage Program | Listed as “On track to establish” in its July 2026 investor presentation; not yet launched | Not announced |
| Maybank, Hong Leong, Alliance, RHB, UOB, HSBC Amanah, Bank Islam, BSN | Home loan and home financing products checked by this site | Floating, linked to the SBR | General public |
As at 12 October 2026, this site found no fixed-rate home loan for the general public on the official pages or disclosure sheets of the banks above. Any package a bank offers separately is governed by its letter of offer.
Conventional vs Islamic home financing, and where semi-flexi fits
| Conventional loan | Islamic home financing | |
|---|---|---|
| Law | Financial Services Act 2013 | Islamic Financial Services Act 2013 |
| The bank earns | Interest | Profit |
| Contract | A loan | Most often Tawarruq (also called Commodity Murabahah, two sale contracts) or Diminishing Musharakah (a reducing partnership) |
| Rate | SBR plus the bank’s spread | The effective profit rate also follows the SBR, under a ceiling profit rate it can never exceed; on early settlement the difference is returned as a rebate (ibra’) |
| Bank examples | Maybank MaxiHome; Hong Leong MortgagePlus; RHB My1 Full Flexi | Bank Islam, Maybank, UOB, Alliance, BSN, HSBC Amanah (see the table below) |
Semi-flexi is not a type of Islamic loan. It describes how extra payments can be taken back, and both conventional and Islamic packages come in semi-flexi or full flexi versions.
| Bank | Islamic product | Contract | Lock-in stated in the PDS |
|---|---|---|---|
| Bank Islam | Home/Property Financing-i | Tawarruq; ceiling profit rate 10.25%, effective rate 3.80% in the illustration | No lock-in |
| HSBC Amanah | HomeSmart-i | Diminishing Musharakah; prepay and redraw at any time | 36 months from first disbursement |
| Maybank | Commodity Murabahah Home Financing-i | Tawarruq (Commodity Murabahah) | See the letter of offer |
| UOB | Home Financing-i | Tawarruq | See the letter of offer |
| Alliance | Home Financing-i | Murabahah via Tawarruq | See the letter of offer |
| BSN | MyHome-i | Tawarruq (Commodity Murabahah) | See the letter of offer |
Whether there is a lock-in depends on the package, not on whether it is conventional or Islamic: Hong Leong MortgagePlus (conventional) states none, while HSBC Amanah HomeSmart-i (Islamic) has 36 months. Our guide to lock-in periods explains how the penalty works.
Can foreigners get a home loan in Malaysia?
Yes. Under Bank Negara’s foreign exchange policy (updated 1 October 2025), a non-resident may borrow ringgit from a Malaysian bank in any amount to buy immovable property in Malaysia, except a purchase of land only. A foreigner without Malaysian permanent residence counts as a non-resident, even while working in Malaysia.
| Bank | Product | Applicants named on the official page | Maximum financing on the official page | Tenure |
|---|---|---|---|---|
| Maybank | MaxiHome | Residents and non-residents | 95% of the property value, including capitalised costs such as MRTA | 35 years or age 70 |
| UOB | Intelligent Home Loan | Malaysians, permanent residents and foreigners | 95%, including MRTA | 35 years or age 70 |
| HSBC | HomeSmart | Residents and non-residents aged 18 to 60 at application | RM50,000 to RM5,000,000 | 35 years or age 70 |
| Alliance | Basic Home Loan | Malaysian citizens and foreigners aged 21 and above | 90%, plus up to 5% for credit insurance or entry costs | 35 years or age 70 |
| RHB | My1 Full Flexi | Residents and non-residents | 90%, plus up to 10% for MRTA/CLTA and entry costs (entry costs capped at 5%) | 35 years or age 70 |
These are the banks’ general limits; none publishes a separate margin for foreign applicants, so the amount approved is the bank’s decision. Foreign buyers in Johor also face the state’s minimum price threshold; see our guide to what foreigners can buy in Johor.
Buyers working in Singapore can also borrow Singapore dollars from Singapore banks to buy in Johor Bahru. UOB Singapore’s International Property Loan covers Johor Bahru, lends up to 70% of the price over up to 35 years in SGD only, for applicants aged 21 to 65 who need not be Singaporean. OCBC Singapore’s Overseas Property Loan covers Kuala Lumpur and Johor Bahru, lends up to 60% with a minimum loan of S$200,000, and is open to Singaporeans, permanent residents and foreigners employed and living in Singapore.
What documents do you need to apply?
| Applicant | Documents | Bank (stated on its official page) |
|---|---|---|
| Salaried | Identity card; latest 3 months’ payslips; latest 3 to 6 months’ bank statements showing the salary credited; latest EPF statement; latest Form BE with tax receipt, or the EA form; SPA, booking receipt or the developer’s letter of offer | RHB, HSBC, UOB, Maybank |
| Self-employed | Identity card; business registration (sole proprietor or partnership: Borang A and D; private limited company: Form 24 and 49); latest Form B with tax receipt; latest 6 months’ company or business account statements; SPA or booking receipt | RHB, UOB, Hong Leong |
| Foreign applicants | Passport with a valid visa, work permit or employment pass; the same income documents as local applicants; the bank may ask for more | Maybank, HSBC, UOB |
The number of months differs between banks:
- Maybank MaxiHome: latest 3 months’ payslips, latest 6 months’ bank statements and a letter confirming employment and pay; a valuation report for a completed property more than 6 months old.
- RHB My1 Full Flexi: latest 3 months’ payslips and salary crediting statements, latest EPF statement, latest Form BE with tax receipt; up to 6 months if your income has variable parts such as commission.
- HSBC HomeSmart: latest 3 months’ payslips or the EA form; without either, the latest 6 months’ bank statements.
Tell me how much you plan to borrow, your nationality, and whether your income is in Malaysia or Singapore. I’ll work out which banks’ packages fit your situation and which documents to prepare.
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Related
Sources
- Bank Negara Malaysia, Foreign Exchange Policy Notice 2 (Borrowing, Lending and Guarantee, 2 October 2025) and FAQs on Non-Resident Borrowing in Malaysia (updated 1 October 2025): ringgit borrowing in any amount, land-only purchases excluded. Document
- Bank Negara Malaysia, Foreign Exchange Policy Preamble and Interpretation (2 October 2025): definitions of resident and non-resident. Document
- Bank Negara Malaysia, Revised Reference Rate Framework (11 August 2021): the SBR is linked solely to the OPR. Page
- Malaysian government portal, “Pembiayaan Perumahan Sektor Awam”: LPPSA fixed 4%, up to RM750,000. Page
- Cagamas Berhad investor presentation (July 2026), slide 13: Fixed Rate Mortgage Program. Document
- Maybank Flexi Loan PDS (2 December 2025) Document; Maybank Mortgage Term Loan PDS (25 November 2025) Document; Maybank MaxiHome page (applicants, margin, tenure, documents) Page
- Hong Leong MortgagePlus PDS (MG PDS ver Sept 2026) Document; Hong Leong home loan documents Page
- Alliance FlexLink Home Loan page Page; Alliance Basic Home Loan page Page
- Standard Chartered MortgageOne page Page
- RHB My1 Full Flexi page (applicants, margin, tenure, documents) Page; RHB home loan PDS (valid from 31 December 2025): My1 Standard Term Home Loan Document
- UOB Intelligent Home Loan page Page; UOB Home Financing-i PDS Document
- HSBC HomeSmart page Page; HSBC Amanah HomeSmart-i PDS (1 February 2026) Document
- Bank Islam home financing PDS (18 November 2025). Document
- Maybank Commodity Murabahah Home Financing-i PDS Document; Alliance Home Financing-i PDS Document; BSN MyHome-i Page
- Bank Negara Malaysia: the Financial Services Act 2013 and Islamic Financial Services Act 2013 come into force (1 July 2013). Page
- UOB Singapore International Property Loan Page; OCBC Singapore Overseas Property Loan Page
General information only, not financial advice. No bank or product is recommended. Rates, margins, fees and documents are governed by each bank’s disclosure sheet and letter of offer. Last verified: 12 October 2026.
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