What is Affin Home Build?
AFFIN Home Build is a conventional term loan for purchasing residential land and constructing a house. Unlike most home loans designed for completed properties, this facility covers the two stages of building from scratch: buying the land and financing the construction. You can take up either stage separately, or structure both under the same facility, with up to 90% margin of financing plus an additional 5% to cover your MRTA and entry costs.
Key Product Details
| Residential Land | House Construction | |
| Margin of financing | Up to 90% + 5% | Up to 90% + 5% |
| Loan tenure | Up to 30 years or age 65, whichever is earlier | Up to 35 years or age 70, whichever is earlier |
| Minimum loan amount | RM50,000 | RM50,000 |
| Maximum loan amount | RM5,000,000 | RM5,000,000 |
| Minimum property value | RM200,000 | RM200,000 |
| Interest rate | SBR + 1.20% p.a. (effective rate 3.95% p.a. based on current SBR of 2.75%) | SBR + 1.20% p.a. (effective rate 3.95% p.a. based on current SBR of 2.75%) |
| Early settlement | No lock-in period. No penalty for early settlement. | No lock-in period. No penalty for early settlement. |
| Rate | % p.a. |
|---|---|
| Standardised Base Rate (SBR) | 2.75% |
| Base Rate | 3.70% |
| Base Lending Rate / Base Financing Rate | 6.56% |
AFFIN Home Build is priced at SBR + 1.20% p.a., giving an effective rate of 3.95% p.a. at the current SBR of 2.75%. Your actual rate may differ based on loan amount, tenure, and credit assessment. Rates are subject to change.
What Are The Features of AFFIN Home Build?
Financing for land purchase and home construction
AFFIN Home Build covers two distinct stages: buying the land and building the house. You can take up either stage separately or structure both under the same facility.
Redraw facility
Once the loan is fully disbursed, you can redraw any advance payments you've made. A fee of RM25 applies per redraw transaction. Do note that advance payments offset future instalments rather than reducing your outstanding principal, though they do save you on daily interest charged.
Save on daily interest with advance payments
Interest is calculated daily on the outstanding balance. Any amount paid beyond your monthly instalment is treated as an advance payment and will offset future instalments. It does not reduce your outstanding loan principal, but it does reduce the daily interest that accrues.
MRTA/CLTA/CRTA2 financing included
The extra 5% financing margin covers your credit protection insurance — Mortgage Reducing Term Assurance (MRTA), Credit Level Term Assurance (CLTA), or Credit Reducing Term Assurance 2 (CRTA2) — so you don't need to pay the premium upfront out of pocket. This coverage is optional but strongly encouraged.
Compulsory fire insurance
You are required to take up fire insurance to protect the property against damage or destruction caused by fire. Affin Bank will provide a quote from their insurance panel, though you are free to arrange this with any insurer of your choice.
Comprehensive property protection
Affin Bank offers a range of coverage options: Mortgage Reducing Term Assurance (MRTA), Mortgage Reducing Term Takaful (MRTT), Personal Accident (PA), Home Contents Insurance, Fire Insurance, Householder Insurance, and Credit Level Term Assurance (CLTA) or Mortgage Level Term Takaful (MLTT).
Floating rate pegged to SBR
The rate is priced at SBR + 1.20% p.a. At the current SBR of 2.75%, the effective rate works out to 3.95% p.a. Your monthly instalment will move if BNM adjusts the Overnight Policy Rate, which in turn affects the SBR. When the rate falls, you pay less; when it rises, your instalment increases.
What Are The Required Documents?
All applicants must submit:
- AFFIN Home Build application form
- Copy of NRIC
- Sales & Purchase Agreement or booking receipt from developer
- Valuation report (for completed land)
- Copy of the Title Deed
Fixed income earners:
- Last 3 months' salary slips
- Latest EA form or Borang B with tax payment receipt
- Latest pension statement (pensioners only)
- Latest 6 months' commission statement (commission earners only)
- Latest EPF statement
- Latest 3 months' bank account statement
- Letter from employer
Self-employed:
- Latest Borang B with tax payment receipt
- Latest 6 months' business account statement
- Latest 6 months' personal account statement
- Latest Profit & Loss account
Frequently Asked Questions
What is AFFIN Home Build?
AFFIN Home Build is a conventional term loan for purchasing residential land and constructing a house. You can borrow between RM50,000 and RM5,000,000, with financing of up to 90% of the property value. An additional 5% can be included to cover MRTA and entry costs such as legal fees and stamp duty.
Can I redraw the extra payments I've made?
Yes, once the loan is fully disbursed. Any advance payments made on top of your monthly instalment can be redrawn at RM25 per transaction. Do note these advance payments offset future instalments rather than reducing your outstanding principal, though you do save on daily interest in the meantime.
Can I pay off this loan early?
Yes, and there is no lock-in period or early settlement penalty. You can redeem the loan in full at any time before maturity without incurring any charges. Do note that no prepayments or partial payments (other than the interest servicing amount) are allowed before the loan is fully disbursed.
Is the interest rate fixed or floating?
The rate is floating, priced at SBR + 1.20% p.a. At the current SBR of 2.75% (w.e.f. 11 July 2025), the effective rate is 3.95% p.a. Your monthly instalment will adjust if BNM changes the OPR, which directly moves the SBR. There is no fixed-rate option under this facility.
