What Are the Current Housing Loan Interest Rates in Malaysia? 

As of June 2025, the housing loan interest rates in Malaysia have seen notable trends that are crucial for homebuyers and those looking to refinance. Understanding these rates can help you secure the best possible mortgage deal in today’s competitive market. This article covers current housing loan interest rates in Malaysia, what factors influence them, and the top banks offering competitive rates.

Understanding Malaysia's Home Loan Reference Rates: SBR, BR, and BLR/BFR

In Malaysia, the housing loan interest rates are primarily influenced by Bank Negara Malaysia's (BNM) Overnight Policy Rate (OPR). This rate serves as the benchmark for all local banks. As of June 2025, the OPR remains at 3.00%, which directly affects the Standardised Base Rate (SBR), Base Rate (BR), and Base Lending Rate (BLR) for loans.

Standardised Base Rate (SBR)

• Introduced on August 1, 2022, the SBR is the primary reference rate for all new retail floating-rate loans, refinancing, and renewals. It's directly pegged to the OPR, meaning any change in the OPR will result in a corresponding, identical change in the SBR. This aims to provide greater transparency and comparability across banks.

• As of June 2025, the Standardised Base Rate (SBR) for most banks is 3.00% p.a., reflecting the current OPR which has been consistently maintained at this level. This forms the foundation of today's home loan interest rates in Malaysia.

Base Rate (BR)

• For existing retail floating-rate loans taken before August 1, 2022, the Base Rate (BR) continues to be the reference. While the BR is determined by individual banks based on their cost of funds and Statutory Reserve Requirement (SRR) costs, it also moves in tandem with the OPR. Most major banks currently have a BR in the range of 3.60% to 4.00% p.a.

Base Lending Rate (BLR) / Base Financing Rate (BFR)

• Similar to the BR, the BLR (for conventional loans) and BFR (for Islamic financing) are still relevant for older loans. These rates also move in line with the OPR. Current BLR/BFR figures for most banks typically range from 6.60% to 6.85% p.a.

It's important to remember that while the SBR, BR, and BLR/BFR serve as benchmarks for housing loan rates in Malaysia, the effective lending rate you pay on your housing loan will be the reference rate plus a spread determined by the bank. This spread can vary based on factors like your credit profile, loan amount, and the specific product offered, influencing your overall housing loan repayment.

Current Housing Loan Interest Rates in Malaysia (June 2025)

In June 2025, the effective lending rates from major banks for a standard 30-year loan of RM350,000 are generally between 4.15% to 5.67% p.a. However, certain promotional rates may offer lower rates, depending on the borrower's profile and loan package.

Here's a general overview of indicative rates from major banks (as of recent data, subject to change):

CIMB House Loan Interest Rate

• IMB Bank's effective rates can range from approximately 4.45% (SBR + 1.45%) upwards, with their SBR at 3.00% and BLR/BFR at 6.85%. Their competitive packages often depend on the borrower's profile and whether they opt for additional products like MRTA/MRTT.

Public Bank Housing Loan Interest Rate

• Public Bank's offerings typically see effective rates around 4.30% - 4.50% p.a. (SBR + 1.30% to 1.50%), with their SBR also at 3.00% and BR at 3.52% to 3.85%.

AmBank Housing Loan Interest Rate

• AmBank provides a range of housing loan products. While their SBR is 3.00%, indicative effective rates for their home loans can start from around 4.25% - 4.50% depending on the specific product and borrower's eligibility.

RHB Housing Loan Interest Rate

• RHB Bank's effective lending rates for housing loans often hover around 4.40% - 4.70% p.a. (SBR + 1.40% to 1.70%), with their SBR at 3.00%.

Maybank Housing Loan

• Maybank Maxi Home often sees rates around 4.30% (BR - 3.0%) or 4.35% p.a.

OCBC Housing Loan

• Standard housing loans hover around 4.35% (BR - 3.72%) or an indicative 4.70% p.a. (SBR + 1.70%).

Bank Islam Housing Loan

• Profit rates for their Baiti Home Financing-i can start from 3.8% p.a., offering competitive Islamic home financing Malaysia.

Important Note: The figures mentioned above are indicative and can change at any time based on market conditions, Bank Negara Malaysia's monetary policy decisions, and individual bank strategies. It's always recommended to check directly with the banks for the most up-to-date and personalized housing loan interest rates today in Malaysia.

Factors Influencing Housing Loan Interest Rates in Malaysia

Beyond the benchmark rates, several factors will determine the exact interest rate you are offered for your Malaysia property loan:

• Overnight Policy Rate (OPR): The OPR, set by Bank Negara Malaysia (BNM), is the most significant factor. Any changes in the OPR will directly affect the SBR, and consequently, your housing loan rates.
• Bank's Cost of Funds: Banks have their own costs associated with securing deposits and funding. This affects the rate spread they offer on top of the reference rate.
• Borrower’s Credit Profile: Your credit score, debt-to-income ratio, and repayment history influence the rate you qualify for. Borrowers with higher credit scores often receive more favorable rates.
• Loan Amount and Tenure: Larger loan amounts or longer tenures may impact the rate offered, depending on the bank's loan policies.
• Loan Product Type: The type of loan (e.g., flexi loans, Islamic financing, fixed-rate loans) can influence the interest rate structure.

What to Do as a Homebuyer in Malaysia

To get the best deal on your home loan interest rate, follow these steps:

1. Understand the Reference Rates: Familiarize yourself with the SBR and how it moves in tandem with the OPR. This knowledge helps you predict potential changes in your mortgage rates Malaysia.

2. Compare Offers: Don't just settle for the first offer. Shop around and compare housing loan interest rates from all banks in Malaysia, including CIMB house loan interest rate, Public Bank housing loan interest rate, AmBank housing loan interest rate, and RHB housing loan interest rate. Look beyond just the headline interest rate and consider fees, lock-in periods, and flexibility features.

3. Utilize Loan Calculators: To estimate your monthly repayments and total interest paid, use online tools. Property Genie's loan calculator is an excellent resource for comparing different loan scenarios based on property price, loan amount, tenure, and interest rates.

4. Check Your Credit Score: A healthy credit score can significantly improve your chances of securing a lower housing loan interest rate.

5. Consider Fixed vs. Floating Rates: Floating rate loans (pegged to SBR/BR/BLR) fluctuate with the OPR, while fixed-rate loans offer stability but may start at a slightly higher rate. Assess your risk tolerance for floating interest rates Malaysia.

6. Seek Professional Advice: Engage with financial advisors or bank loan officers to get personalized advice and understand the fine print of each loan product.

The housing loan interest rates in Malaysia are competitive in 2025, with major banks offering flexible loan packages to cater to different homebuyers’ needs. By understanding the impact of SBR, BR, and OPR, and comparing the rates across banks like CIMB, Public Bank, and AmBank, you can secure the most favorable rate for your home loan.

Before applying, consider using loan calculators, checking your credit profile, and consulting with professionals to ensure you make the best decision for your financial future. Stay updated on the latest interest rates and trends to make informed decisions about your housing loan in Malaysia.

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