Musharakah Mutanaqisah Analysis

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The concept of Musharakah Mutanaqisah has been practiced by most of banks in Malaysia. The banks had offered some of their products on this basis, especially in terms of home financing. The banks which serve Musharakah Mutanaqisah on the basis of their products are as follows:
i) Maybank Islamic ii) Affin Islamic iii) Kuwait Finance House iv) Standard Chartered Saadiq
v) Bank Islam Malaysia Berhad vi) OCBC Al Amin vii) Public Bank viii) HSBC Amanah
Different banks may offer different kind of features, in applying the concept of Musharakah Mutanaqisah. Below are some of the products which are available in the market, offered by the banks to its potential clients.
2.1 Maybank Islamic: Musharakah Mutanaqisah Term Financing- i (MMTF-i)
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The customer will be fully owned the property at the end of financing tenure. The tenure availability is up to 20 years.
In terms of the price, the bank computes the contract in competitive and reasonable price. The monthly instalment by customer reflects the ownership of customer over the property. In other words, as the more customer’s monthly instalments being paid to the bank, the customer’s ownership of the property will
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Saadiq MyHome-i is a Shariah compliant home plan offered by Standard Chartered Saadiq. Under the principle of Musharakah, this package will control and give flexibility of their client’s cash flow.
With this package, clients are assured to finance and managed ethically with Shariah compliant term financing. Those who enter into this contract can enjoy stamp duty remission of financing documents for new property purchases and full stamp duty waiver on financing documents when a person refinance from existing conventional home financing to Saadiq MyHome-i.
Besides that, ceiling rate protection shields a person from Base Financing Rate (BFR) fluctuations, and protect a client from rising financing rates.
The second one is Saadiq My HomeOne-i whereby it is an innovative product that combines a home financing facility with an easy-to-use current account( Mudharabah account) that give flexibility to control

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