Interest Rate For Housing Loan Malaysia (2025)

The table below provides a general idea of housing loan interest rates in Malaysia 2025:

Understanding Housing Loan Interest Rates in Malaysia

• Base Rate (BR): This is the minimum interest rate set by individual banks. Most housing loans in Malaysia are pegged to the BR.
• Spread: An additional percentage added to the BR to determine your final interest rate. For example, if the BR is 3.5% and the spread is 0.5%, your interest rate would be 4%.
• Effective Lending Rate (ELR): This is the true cost of borrowing, taking into account compounding interest and other fees.

Factors Affecting Interest Rates

• Type of Loan:
  • Fixed Rate: Interest remains constant throughout the loan tenure.
  • Floating/Variable Rate: Interest fluctuates based on the BR.
  • Semi-flexi Loan: Combines features of fixed and floating rates.
• Loan-to-Value (LTV) Ratio: This is the percentage of the property value you’re borrowing. Lower LTVs usually mean lower interest rates.
• Loan Tenure: Longer tenures may result in higher interest rates.
• Individual Credit Score: A good credit score can get you a lower interest rate.
• Promotions and Packages: Banks often offer competitive promotional rates.

Where to Find the Best Interest Rates

• Comparison Websites:
  • RinggitPlus
  • Loanstreet
  • iMoney
• Banks’ Websites: Check individual bank websites for their latest rates and packages.
• Financial Advisors: A financial advisor can help you compare options and find the best rate based on your circumstances.

Important Notes

• Interest rates for housing loans change frequently, so it’s best to compare rates right before applying for a loan.
• Don’t focus solely on the interest rate. Also consider the loan’s effective lending rate (ELR) and any associated fees for a true comparison.