Tell me about AmBank SJKP Home Financing-i.
Skim Jaminan Kredit Perumahan (SJKP) Home Financing-i is a home ownership initiative offered by the Ministry of Finance Malaysia, available specifically for first-time home buyers.
In order for AmBank Islamic to approve your home financing application, you are required to offer your house as security.
The market value of your first house should be between RM100,000 to RM500,000, whether it is an under-construction property or a completed property.
AmBank Islamic can finance up to 110% of the market value of the house for a repayment period up to 35 years or 65 years old.
Who can apply for this home financing?
If you are a Malaysian, aged between 18 years to 65 years old and earn less than RM11,000 per month, you are qualified to apply for this AmBank SJKP Home Financing-i.
Bear in mind that the property financed under this home ownership initiative is meant to be resided in, not to be used to collect rental income.
What are the fees and charges I need to pay?
There are several fees and charges you need to pay:
- Stamp Duty: As per the Stamp Act 1949 (Revised 1989). Stamp duty is 0.5% of the financing amount disbursed, and a nominal stamp duty of RM10 per copy of the stamped document
- Disbursement Fee: Include fees for registration of the charge and other related charges
- Valuation Fee: For preparation of a formal valuation report before the first disbursement of the facility (applicable for completed properties only)
- Wakil Fee: RM20
- Confirmation letter or withdrawal from EPF: RM20
For more details, check out the Product Disclosure Sheet.
Do I need any Takaful coverage?
Fire Takaful, which covers any damages or loss due to fire, is compulsory for every house owner. The bank also encourages you to take up MRTT for home financing, which offers you financial protection in the event of death or total or permanent disability.
Can I make an early settlement of my home financing?
Yes, absolutely. AmBank allows you to pay off your home financing ahead of schedule.
Based on the Product Disclosure Sheet, when you took the financing, the bank will calculate the total amount you would pay back over the full period (e.g., 30 years). This total amount includes the original loan plus all the profit the bank planned to earn from you over those 30 years.
If you decide to pay it all off early (say, after 10 years), the bank agrees it's not fair to charge you for the 20 years of future profit they haven't earned yet.
So, what is the 'Ibra' (Rebate) stated in the PDS? The 'ibra' is simply a discount for paying early. It's not a cash refund; rather, it's a reduction of your final bill, which means AmBank will calculate the profit they would have made in the future and subtract it from the final amount you need to pay to close your account.
In short, AmBank allows and even encourages early settlement by giving you a discount, which means you won't have to pay the profit for the years you've skipped.
What documents do I need to prepare?
You need to have a copy of the Sale & Purchase Agreement, Booking Receipt, Copy of Title and Valuation Report. Then attach them to your application form and the following documents:
If you are an income earner:
- Copy of NRIC
- Copy of 3-month payslips
- Latest EA form / EPF statement
If you are self-employed:
- Copy of NRIC
- Copy of 3-month payslips
- Latest EA form / EPF statement
- Last 3-month bank statement
