Malaysia Financial Guides & Glossary

Plain-English explanations, BNM rate watch, and step-by-step guides for Malaysians.

πŸ“Š Rate Watch β€” April 2026

BNM Key Policy Rates

RateCurrentPreviousChangeSince
OPR (Overnight Policy Rate)3.00%2.75%β–² 0.25%May 2023
Floor Rate2.75%2.50%β–² 0.25%May 2023
Ceiling Rate3.25%3.00%β–² 0.25%May 2023
Statutory Reserve Requirement (SRR)2.00%2.00%β€” Unchanged2022

Malaysian Bank Base Rates (April 2026)

BankBase Rate (BR)BLRHome Loan Rate
Maybank1.85%6.85%4.35%
CIMB Bank1.90%6.90%4.40%
Public Bank1.80%6.80%4.30% βœ“ Lowest
RHB Bank1.95%6.95%4.45%
Hong Leong Bank1.85%6.85%4.35%
AmBank2.00%7.00%4.50%

EPF Dividend History

YearConventional AccountShariah Account
20255.50%5.40%
20246.30%6.30%
20235.50%5.40%
20225.35%4.75%
20216.10%5.65%
20205.20%4.90%
20195.45%5.00%
20186.15%5.90%

πŸ“š Featured Guides

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Popular

First Home Buyer Checklist Malaysia 2026

Buying your first home in Malaysia? Here is the complete step-by-step checklist β€” from checking eligibility to collecting your keys.

1
Check your eligibility

Calculate your DSR, check CCRIS/CTOS credit report, ensure no defaults. Banks need DSR below 60–70%.

2
Check first-time buyer schemes

My First Home Scheme (100% financing, income ≀ RM5K), PR1MA (RM100K–500K), RUMAWIP (WP Kuala Lumpur, max RM300K), Skim Rumah Pertamaku.

3
Get Letter of Offer (LO) from bank

Apply to 2–3 banks simultaneously. The LO is valid for 30–60 days. Compare rates using our mortgage calculator.

4
Sign Sale & Purchase Agreement (SPA)

10% deposit due on SPA signing. Stamp duty on SPA: 1%–4% (first-time buyers get exemption up to RM500K under Budget 2024).

5
Budget for extra costs

Legal fees: 0.5%–1% of property price. Valuation fee: RM300–RM500. MRTA/MLTA insurance: 2%–3% of loan. Disbursements: ~RM1,000–RM3,000.

6
Loan disbursement & key collection

For sub-sale: 3–6 months. For new development: progressive billing during construction. Collect VP (Vacant Possession) once Certificate of Completion & Compliance (CCC) is issued.

πŸ’‘ Use our calculators: Mortgage calculator β†’ Stamp duty estimate β†’ DSR check
πŸ“Š
Beginner

How to Calculate Your DSR in Malaysia

Your DSR (Debt Service Ratio) determines whether banks will approve your loan. Here is the exact formula used by Malaysian banks.

DSR Formula
DSR = (Total Monthly Debt Γ· Gross Monthly Income) Γ— 100
βœ… Good DSR
Below 40%
⚠️ Acceptable DSR
40%–60%
❌ Risky DSR
Above 60%
Bank Limit (typical)
60%–70%

Example: Monthly income RM6,000. Car loan: RM700. Credit card minimum: RM150. New mortgage: RM1,800. Total = RM2,650. DSR = (2,650 Γ· 6,000) Γ— 100 = 44.2% β€” Approved.

Check Your DSR β†’
πŸ’°
Popular

EPF vs ASB vs Fixed Deposit β€” Which is Best?

FactorEPFASBFixed Deposit
2025 Return5.50%5.80%3.0%–3.8%
Capital Guaranteed?βœ… Yesβœ… Yesβœ… Yes
Liquidity⚠️ Limitedβœ… Anytimeβœ… After tenure
Bumiputera only?❌ No (all)βœ… Yes❌ No (all)
Tax-free returns?βœ… Yesβœ… Yes❌ Subject to tax
Loan facility?βœ… EPF i-Akaunβœ… ASB Financingβœ… FD as collateral

Verdict: For Bumiputera β€” ASB first (highest return, capital guaranteed), then top up EPF voluntary contributions. For non-Bumiputera β€” maximise EPF VC for the 5.50% tax-free return, far better than FD. Use our Investment Calculator to project your returns.

πŸ“– Financial Glossary

DSR β€” Debt Service Ratio
Percentage of gross monthly income used to repay all debts. Malaysian banks cap this at 60–70%. Formula: (Monthly debt Γ· Gross income) Γ— 100.
OPR β€” Overnight Policy Rate
BNM's key interest rate benchmark. Currently 3.00%. When OPR rises, mortgage rates rise. When OPR falls, mortgage rates fall.
BLR β€” Base Lending Rate
Reference rate used by banks. Currently ~6.85% for most banks. Most floating-rate mortgages are expressed as BLR minus a spread (e.g. BLR - 2.50% = 4.35%).
BR β€” Base Rate
Replaced BLR in 2015. The minimum rate banks charge for loans. Directly linked to OPR. Most new mortgages are quoted as BR + spread.
LTV β€” Loan-to-Value Ratio
Percentage of property value financed by the bank. Maximum LTV in Malaysia is 90% for first property below RM500K, 80% for subsequent properties.
Murabahah
Islamic financing where bank buys an asset and resells it at cost + profit. No interest (riba). Profit rate replaces interest rate. Fixed selling price agreed upfront.
Takaful
Islamic insurance based on mutual cooperation (ta'awun). Participants contribute to a shared pool. Surplus is distributed back. Shariah-compliant alternative to conventional insurance.
Faraid
Islamic law of inheritance as defined in the Quran. Specifies fixed shares for each heir category. Applies to all Muslims in Malaysia. Non-Muslims follow the Distribution Act 1958.
MRTA β€” Mortgage Reducing Term Assurance
Life insurance that pays off your outstanding mortgage if you die. Coverage reduces as loan balance reduces. Usually cheaper than MLTA.
MLTA β€” Mortgage Level Term Assurance
Life insurance with fixed coverage throughout the term. If you die, family receives the full sum assured (not just loan balance). More expensive but provides excess benefit.
SPA β€” Sale & Purchase Agreement
Legal contract between buyer and seller for property purchase. 10% deposit paid on signing. Binding legal document prepared by a licensed solicitor.
EPF β€” Employees Provident Fund
Malaysia's mandatory retirement savings scheme. Employee contributes 11%, employer 12–13% of salary. Currently paying 5.50% dividend (2025). Tax-deductible contributions.
Hibah
Gift of an asset made during the giver's lifetime. Once accepted, ownership transfers immediately. Bypasses Faraid. Used in estate planning to transfer property to specific individuals.
Wasiat
Muslim's written will. Can bequeath up to 1/3 of estate to non-Faraid heirs. The remaining 2/3 follows Faraid automatically. Registered at Amanah Raya Berhad from RM150.
CCRIS β€” Central Credit Reference System
BNM's database of all credit facilities in Malaysia. Banks check CCRIS to see your outstanding loans, repayment history, and any defaults. Free to request via BNM eCCRIS.
Flat Rate vs Effective Rate
Flat rate = interest charged on original loan amount. Effective rate = true annual cost on reducing balance. For hire purchase: effective rate β‰ˆ flat rate Γ— 1.85. A 2.5% flat rate β‰ˆ 4.6% effective.