How does HomeLink-i work?
AmBank Islamic HomeLink-i is a fully Shariah compliant mortgage based on the concept of Bai Bithaman Ajil (BBA). This mortgage is based on a variable rate pegged to the IBR, with a capped profit rate. However, this Islamic mortgage is only applicable to the existing HomeLink accountholders.
As the name suggests AmBank Islamic will open a current account (CA-i) linked to your home loan. The balance of your current account will be deducted from your loan principal which allows for a reduction in profit calculations for the bank. That means more savings for you!
AmBank Islamic will be able to finance up to 90% of the value your house. You can request an additional 5% financing to go towards MRTT. This is of course subject to approval of your your creditworthiness.
And my commitments?
The major commitment will be your monthly installments. You'll have the flexibility of paying extra onto your principal through the current account.
If you fail to pay your repayments for two months straight the bank has the right to raise your interest payments so be careful, their late penalty charges can be quite severe.
Do I really need the insurance?
Group Mortgage Reducing Term Takaful (MRTT) is highly recommended to hedge the risk of losing your family's property due to unforeseen circumstances. Fire Takaful is compulsory to cover damages due to fire breakout and used as a collateral to AmBank Islamic.
What are the risks associated with these kinds of home loans?
The profit rate on this mortgage may vary if the IBR changes. Any interest rate increase will result in higher monthly installments. If you have problems meeting your loan obligation, feel free to contact AmBank Islamic to discuss payment alternatives.
Thankfully, a very high IBR won't harm you as much with a capped profit rate policy set up by the bank. The cap is set at 9.99%, which is quite competitive.
What documents are needed when applying?
Salaried employee:
- NRIC photocopy
- Salary slips (latest 3 months)
- EA form/EPF statement (latest 2 years)
- Sales & Purchase Agreement/ Booking receipt from developer
Self-employed:
- NRIC photocopy
- Salary slips (latest 3 months)
- EA form/EPF statement (latest 2 years)
- Sales & Purchase Agreement/ Booking receipt from developer
- Business registration A&D
- Latest 3 months bank statement
