What is 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 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 has been 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 an excess payment on top of your monthly loan amount, effectively decreasing your rental profit as it is calculated daily.
The rental rate for this mortgage is BR + 1.55%. Even though the rental rate is pegged to Affin Bank’s Base Rate (BR), you would not be too exposed to the ups and downs of the market, as there is a ceiling rate.
What is my obligation?
Simple. You need to commit to paying your monthly instalment; otherwise risk paying a penalty and facing increased finance charges 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 the 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 are needed to apply?
All applicants must submit:
- AFFIN Home Build-i 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
