hi, as far as i know.. there is no free lunch in this world.. very hard for me to believe there is no lock in period for home loan for the interest rate with your loan size you getting... almost impossible..
you wont see the words " lock in period " & " penalty" in the islamic loan letter of offer or the agreement..
but then, when you cancel the loan ( refinance/sell off / full settle) within the period of time.. usually is 5 years +- ( depending on the bank or package), this loan will charge you a fee , may call it exist fee.. or etc... ( actually is same as penalty charges impose in the conventional loan)

i 'm a banker who profession in mortgage..

I believe this a Islamic Term Housing Loan .. Not a Islamic Flexible Housing Loan...

I want to correct something stated above: Some banks dont have lock in period for islamic loan.

First off all, it depands on the bank how they want the islamic loan to be. A few months ago there in The Star, Biz section, they say malaysia does not have a standard islamic loan. So every bank has their own way.

Pros:
1. Some bank does not imply lock in period.
2. Rates capped at 9.5% or 10% or 11%.
3. Most banks done give u penalty for late payments or if u dont pay for a few months because in islam its illegal to impose interest. Infact Bank Islam let u forfeit 2 months installment in 1 year. Check out their banners.

Cons:
1. No Daily or monthly rest for installment. Depends on the bank.
2. Interest rates is not so good. This depends on banks also.

Ill add more if i remember this topic later