Frequently Asked Questions - Property Financing Info Centre

Property Financing Info Centre

Effective 2 Jan 2015, the Islamic Base Rate (IBR) will replace the Islamic Financing Rate (IFR) as the main reference rate for new retail floating rate loans for individual customer.

The objectives:

  • Promote informed decision making
  • Encourage more disciplined and efficient practices in the pricing of retail loan
  • Better reflect changes in the cost of funds arising from monetary policy or market funding conditions

Islamic Base Rate is made up of 2 parts, our benchmark Islamic cost of funds (ICOF) and the Statutory Reserve Requirement (SRR) cost imposed by Bank Negara Malaysia.  Our benchmark COF now reflects the cost of raising new funds in prevailing market funding conditions based on the 3-month KLIBOR as well as customer deposit rates.

Before 2 Jan 2015

From 2 Jan 2015

Islamic Financing Rate

Loans extended prior to 2 January 2015 continue to be referenced against the Islamic Financing Rate (IFR) until their maturities.

Islamic Base Rate

Effective 2 January 2015, a new reference rate known as the Islamic Base Rate (IBR) will be used for new floating rate financing facilities for individual applicant.

Effective on 2 January 2015


 The move to IBR does not affect Effective Profit Rates

Standard Property Financing’s Effective Profit Rate:



Financing Amount

Financing Tenure

Holding Period

Effective Profit Rate


30 Years



  1. Compare the effective profit rates quoted by different financial institutions before taking out a new financing.
  2. Ask for a Product Disclosure Sheet (PDS) providing you with the effective profit rate and total payments amounts for the financing facilities you plan to take out.
  3. Ask your financial institution to explain the factors which may lead to a change in the Islamic Base Rate.
  4. Your monthly payment amount will increase or decrease when there is a change in the Islamic Base Rate.
  5. You should also assess whether you can continue to afford the financing payment if the profit rate increases in future.

We are pleased to share with you our new Property Financing-i Service Charter, where we outline the service standards we provide and information on how to reach us for Property Financing-i related queries.

  1. Know your customer
  2. Timely and efficient service
  3. Transparent and personable service
  4. Banking made accessible


Please click here to view the Property Financing-i Service Charter.

For enquiries connect with us online or drop by your nearest Hong Leong Bank Branch.