What is this product Affin Home Build-i about?
Affin Home Build-i is a home financing product that is in compliance with Shariah standards. It is an equity-based home financing whereby you partner with the bank to own a house.
You can gradually increase your shares of the property by paying to the bank monthly rentals, which ultimately will go toward reducing the bank’s shares of the property.
What can I finance via Affin Home Build-i?
You can finance your new house, whether it is still under construction or have completed, with this Islamic home loan. The bank will provide up to 85% of the property value while you contribute only 15%.
What else do I get from this product?
As this Islamic mortgage is a semi-flexi home loan, you have the flexibility to make excess payment on top of your monthly loan amount, effectively decreasing your rental profit as it is calculated on daily rest.
The rental rate for this mortgage is BR + 1.11%. Even though the rental rate is pegged to Affin Bank’s Base Rate (BR), you would not be too exposed by the up and down of the market as there is a ceiling rate.
What is my obligation?
Simple. You need to commit paying your monthly instalment, otherwise risk paying penalty and facing increased finance charge for failing to pay the facility for 3 consecutive months.
Do I need Mortgage Reducing Term Takaful (MRTT)?
While it is optional, the bank will strongly encourage you to get one by adding 5% to your monthly commitments.
It is practical in a sense that when you are no longer around, the MRTT will pay off all your outstanding balances, lifting the burden of payment off on your next of kin.
What other documents to attach with the application form?
If you are an employee earning a salary
- NRIC copy
- Latest 3-month pay slips
- Latest EPF statement
- Latest 6-month commission statements (for commission earners)
- EA Form
- Letter from employer
- Sales & Purchase Agreement/ Booking receipt from developer
- Valuation report
- Copy of the Title Deed
If you are self-employed
- NRIC photocopy
- Latest Borang B supported by tax payment receipt
- 3-month salary slip
- Latest 6-month business/personal account statement
- Latest Profit & Loss account
- Sales & Purchase Agreement/ Booking receipt from developer
- Valuation report
- Copy of the Title Deed
