ISLAMIC HOME FINANCING INSTRUMENTS IN MALAYSIA

Accomodation is one of the fundamental rights for by every Muslim. A house is a everyone needs. They will get by all means by purchase it, renting or build the house themselves. Buyers normally have to go to a bank for a financing facility and the long, extended payment for home mortgage would take long term repercussion on individual's monthly income. Thus, very few people can afford to purchase a house on a cash basis. As muslim consumers, it is important for them to choose wisely on their financing.

Bil	List of Islamic Banks	Ownership Status	Islamic Instruments
1.	Affin Islamic Bank Berhad	Local	musharakah mutanaqisah
2.	Al-Rajhi Banking & Investment Corporation (Malaysia)	Foreigner	bay’ bithaman ajil
3.	Alliance Islamic Bank Ber had	Local	bay’ bithaman ajil
4.	AmIslamic Bank Berhad	Local	bay’ bithaman ajil
5.	Asian Finance Bank Berhad	Foreigner	tawarruq Istisna’
6.	Bank Islam Malaysia Berhad	Local	tawarruq
7.	Bank Muamalat Malaysia Berhad	Local	tawarruq Istisna’
8.	CIMB Islamic Bank Berhad	Local	Murabahah/tawarruq
9.	Hong Leong Islamic Bank Berhad	Local	tawarruq
10.	HSBC Amanah Malaysia Berhad	Foreigner	musharakah mutanaqisah
11.	Kuwait Finance House Malaysia Berhad	Foreigner	Ijarah muntahia bi al-tamlik Ijarah mausufah fi al-zimmah
12.	Maybank Islamic Berhad	Local	musharakah mutanaqisah murabahah
13.	OCBC Al-Amin	Foreigner	Ijarah muntahia bitamleek
14.	Public Islamic Bank Berhad	Local	bay’ bithaman ajil
15.	RHB Islamic Bank Berhad	Local	musharakah mutanaqisah
16.	Standard Chatered Saadiq Berhad	Foreigner	musharakah

Alhamdulliah. Currently in Malaysia we have 16 Islamic banking offered Islamic home product.Table shows the five types of Islamic home financing instruments bases on debt such as Bai Bithaman Ajil, Murabahah, Istisna’, Ijarah and Tawarruq instruments during 1983 until 2015. Meanwhile, Islamic home financing based on equity is Musyarakah Mutanaqisah instrument only. However, Bai Bithaman Ajil instruments is not predominant as the instrument contract because Musharakah Mutanaqisah (diminishing partnership) and Tawarruq are most accepted in Malaysia. In short, the activities in Islamic banks giving more options to the customers. They can choose better service and other add value features of the Islamic home product and service.