It's funny that you mentioned the fact your friend is a muslim. Muslims are not allowed to earn interest, likewise paying interest from borrowing money.
I am wondering what is the name of this loan that MCCA is approving, because it sounds a bit funny when you see MCCA agreement, they using the word 'interest' but insisting that it should be read as 'profit'. MCCA also have scheduled rates.
Furthermore, Islamic banking does not encourage excessive debt and speculation, borrowing 105% for property investment in the downtrending market sounds a bit un-islamic.
