ISLAMIC HOME FINANCING REFINANCING UNDER MUSHARAKAH MUTANAQISAH

Acting for a borrower seeking to refinance an existing conventional housing loan into an Islamic facility under the Musharakah Mutanaqisah (MM) structure with RHB Islamic Bank. The client’s existing charge was encumbered with conditions that required careful co-ordination between the discharging conventional bank, the new Islamic financier, and the Land Office.

I prepared the facility agreement, deed of assignment, and the MM purchase undertaking documentation, and advised the client on the practical differences in security documentation between conventional and Islamic financing structures under Malaysian law. The simultaneous discharge and perfection of the Islamic charge were executed without interruption to the client’s financing.

The matter required particular attention to the conditions precedent stipulated in the Letter of Offer and synchronisation of timing with the developer’s solicitors for the outstanding strata title perfection.