What do I need to know about Affinbank Home Solution Plus?
Home Solution Plus is a semi flexi mortgage for properties valued above RM200,000 that can be borrowed for up to 35 years, or until 70 years of age, whichever is sooner.
Subject to approval, Affinbank may finance up to 90% of the value of your house. To activate Zero Moving Cost (ZEC), an additional 5% can be topped up to the financing package to cover MRTA, legal fees, evaluation fees and stamp duty.
The main thing to note about this mortgage is that it does what it says: extremely flexible mortgage. With this home loan you'll enjoy the luxury of depositing extra money, reducing your interest charges, ultimately shortening your tenor. On top of that, you can redraw excess cash at a small fee.
How much money can I borrow with this home loan?
Generally speaking, as a very rough guide, if you take this Affinbank mortgage, your Debt Service Ratio should not exceed 65% of your net income if you earn less than RM5,000 each month, or 80% of your net income if you earn greater than RM5,000 each month.
What are my commitments?
You are required to pay your monthly installments based on a floating interest rate. By the end of the loan period you will have paid the principal amount of the loan plus the interest. Please note that total repayment amount may vary as your interest rate is linked to the Base Rate (BR).
What does the mortgage insurance cover?
The Mortgage Reducing Term Assurance (MRTA) is protects you against the risk of losing your family's property due to unforeseen circumstances, such as serious illness. This insurance is compulsory.
What are the potential risks?
The interest rate on this loan may change as it is linked to the Base Rate. An increase in the underlying BR will result in higher monthly repayments. The late penalty fee is relatively high, but that should only concern you if you do not keep up with your repayments!
Why should I choose the Affinbank Home Solution Plus?
There are some really good benefits with this home loan.
- Long Tenure: Length of loan is the maximum allowable in Malaysia - 35 years.
- Flexibility: You can pay extra when you can afford to, reducing your interest charges.
- Excess Cash: If you pay extra you can withdraw excess cash as and when you need it.
What documents do I need to provide to make an application?
The main documents you need to submit is a copy of your NRIC, Sales & Purchase Agreement / Booking receipt from developer, Valuation report (for completed property) and Copy of the Title Deed. The supporting documents are as follows:
For fixed income earners:
- Latest 3-months salary slips
- Latest EA form or Borang B supported by tax payment receipt
- Latest pension statement (for pensioners)
- Latest 6-months commission statement (for commission earners)
- Latest EPF statement
- Latest 3-months bank account statement
- Letter from Employer
- Latest Borang B supported by tax payment receipt
- Latest 6-months business account statement
- Latest 6-months personal account statement
- Latest Profit & Loss account