Is Affin BNM Priority Sector Home Financing-i the right mortgage for me?
Affin BNM Priority Sector Home Financing-i is an Islamic mortgage that abides by the principle of Musharakah Mutanaqisah. It is designed with the objective to enable low-income and middle-income earner to afford a home of their own.
There are a few restrictions for this home financing product. The purchased property must be residential property and must fall under the category of low-cost housing. Affin Bank will grant up to 90% of the purchase price and an additional 5% for mortgage reducing term takaful ( MRTT) and legal fees.
What is the price range for a low cost house?
For West Malaysia the purchase price of your house can not exceed RM250000, whereas for East Malaysia it has to be below RM300000.
Affin Bank offers different profit rates for homes in East Malaysia and West Malaysia. Refer to the table below for the complete breakdown and rates:
|Location||Property Price||Interest Rate|
|West Malaysia||RM35000 - RM100000||BR+1.36%|
|RM100000 - RM250000||BR+1.26%|
|East Malaysia||RM35000 - RM120000||BR+1.36%|
|RM120000 - RM300000||BR+1.26%|
Affin bank's base rate ( BR) is currently 3.99%.
Can I clear-off my mortgage before it matures?
Affin BNM Priority Sector Home Financing-i has a lock in period of 5 years. It basically means that you aren’t allowed to buyout your mortgage within a period of 5 years. Doing so will result in a penalty fee subject to terms decided by the bank.
Is it compulsory to get Takaful cover?
To qualify for this Islamic home financing you have to purchase a Mortgage Reducing Term Takaful ( MRTT) policy. This acts as a financial safety net in the event of death and total permanent disability, as it pays off the remaining amount on your mortgage.
What documents do I need to apply this home financing?
All the supporting documents that you’ll need are listed below. Take note that the requirements are different for employees and self-employed individuals.
- Photocopy NRIC
- Sale & Purchase agreement
- EA form and Borang B
- 3 months pay slips
- EPF statement
- 3 months bank account statement
(If you receive commission you’ll have to provide 6 months commission statements)
- 6 months business account statements
- 6 months personal account statements
- Profit & Loss account