Best Home Loan Rates & Refinancing Options in Malaysia (2025)
Buying a home is one of the most significant financial commitments, and choosing the right home loan can save you thousands in interest payments. Whether you’re a first-time homebuyer or looking to refinance, finding the best home loan rates and refinancing options in Malaysia is crucial. This guide will help you navigate the best home loans and refinancing options available in 2025.
Best Home Loan Rates in Malaysia (2025)
Home loan interest rates vary based on factors such as the loan amount, tenure, and the borrower’s financial profile. In 2025, most Malaysian banks offer competitive rates, typically based on the Base Rate (BR) + Spread. Below are some of the best home loan rates currently available:
1. Maybank Home Loan
- Interest Rate: BR + 0.45% (approximately 3.90% p.a.)
- Loan Tenure: Up to 35 years
- Minimum Loan Amount: RM100,000
- Key Features: ✅ Flexible repayment options ✅ Extra payment allowed without penalty ✅ High margin of financing (up to 90%)
2. CIMB Home Loan
- Interest Rate: BR + 0.40% (approximately 3.85% p.a.)
- Loan Tenure: Up to 35 years
- Minimum Loan Amount: RM50,000
- Key Features: ✅ No early settlement penalty ✅ Offers a semi-flexi loan package ✅ Available for both local and foreign buyers
3. Public Bank Home Loan
- Interest Rate: BR + 0.50% (approximately 4.00% p.a.)
- Loan Tenure: Up to 35 years
- Minimum Loan Amount: RM100,000
- Key Features: ✅ Competitive interest rates ✅ Option for fixed or floating interest rates ✅ Low processing fees
4. RHB Home Loan
- Interest Rate: BR + 0.45% (approximately 3.90% p.a.)
- Loan Tenure: Up to 35 years
- Minimum Loan Amount: RM100,000
- Key Features: ✅ Flexi-loan options available ✅ Fast approval process ✅ Suitable for first-time buyers
5. Hong Leong Bank Home Loan
- Interest Rate: BR + 0.55% (approximately 4.10% p.a.)
- Loan Tenure: Up to 35 years
- Minimum Loan Amount: RM150,000
- Key Features: ✅ Zero moving cost (for refinancing customers) ✅ Flexibility to make extra payments ✅ Ideal for property investors
Best Home Loan Refinancing Options in Malaysia (2025)
Refinancing your home loan can be a great way to reduce monthly payments, secure a lower interest rate, or access cash from your home’s equity. Here are the top refinancing options in Malaysia:
1. Maybank Mortgage Refinancing
- Interest Rate: BR + 0.40% (approximately 3.85% p.a.)
- Loan Tenure: Up to 35 years
- Refinancing Amount: Up to 90% of property value
- Benefits: ✅ Lower interest rates for existing customers ✅ No early settlement penalty ✅ Option to consolidate multiple loans into one
2. CIMB Home Loan Refinancing
- Interest Rate: BR + 0.45% (approximately 3.90% p.a.)
- Loan Tenure: Up to 35 years
- Refinancing Amount: Up to 80% of property value
- Benefits: ✅ Lower monthly installments ✅ Quick approval process ✅ Cash-out option available for other financial needs
3. Public Bank Mortgage Refinancing
- Interest Rate: BR + 0.50% (approximately 4.00% p.a.)
- Loan Tenure: Up to 35 years
- Refinancing Amount: Up to 85% of property value
- Benefits: ✅ Competitive rates with minimal processing fees ✅ Suitable for long-term homeowners ✅ Option for fixed or floating interest rates
4. RHB Home Refinancing
- Interest Rate: BR + 0.45% (approximately 3.90% p.a.)
- Loan Tenure: Up to 35 years
- Refinancing Amount: Up to 80% of property value
- Benefits: ✅ Lower interest rates for eligible borrowers ✅ Extra financing for home renovation or personal needs ✅ No hidden fees
5. Hong Leong Mortgage Refinancing
- Interest Rate: BR + 0.55% (approximately 4.10% p.a.)
- Loan Tenure: Up to 35 years
- Refinancing Amount: Up to 90% of property value
- Benefits: ✅ Zero moving cost packages available ✅ Extra flexibility to make advance payments ✅ Faster approval process
Factors to Consider Before Choosing a Home Loan or Refinancing
Before committing to a home loan or refinancing, consider these factors:
📌 Interest Rates – Look for the lowest rates to save money in the long run. 📌 Loan Tenure – Longer tenure means lower monthly payments but higher total interest paid. 📌 Flexibility – Check if you can make extra payments without penalties. 📌 Processing Fees – Some banks charge fees for processing your application. 📌 Eligibility Requirements – Banks have different minimum income and credit score requirements. 📌 Refinancing Costs – Consider legal fees, valuation fees, and stamp duty when refinancing.
Conclusion
Choosing the best home loan or refinancing option in Malaysia depends on your financial goals, whether it’s reducing monthly payments, securing a lower interest rate, or accessing extra funds. Maybank, CIMB, Public Bank, RHB, and Hong Leong Bank are among the top choices offering competitive rates and flexible loan structures.
💡 Tip: Always compare different banks, check for promotions, and read the terms carefully before making a decision. With the right home loan or refinancing plan, you can save money and manage your finances more effectively! 🚀
