How does this mortgage work?
Bank Islam Baiti Home Financing is based on the principle of Tawarruq (Commodity Murabahah). Tawarruq is defines the purchase of an asset with deferred price, then selling that asset to a third party to get cash.
Subject to credit check and approval, Bank Islam will be able to finance up to 90% of the value of your new house, whether complete or under construction.
As opposed to other loans, for a property in some residential projects that are under construction you can enjoy No Payment During Construction for up to two years.
What are my monthly commitments?
Your monthly installments are calculated based on the Profit Rate, which is determined by the IBR (equivalent to BR) and is fixed throughout the whole tenure.
Thankfully, the profit rate is capped to a limit so that you can hedge any sudden hikes in the IBR that might result in higher repayments. Bank Islam also offer a fixed multi-tier home loan in this financing package.
You can enjoy low interest rate for the first year, increasing incrementally for subsequent years. Be reminded that if you are unable to service your repayments, it would be wise to contact Bank Islam to negotiate an alternative for payments and avoid foreclosure.
Do I need any house Takaful coverage?
It is compulsory for you to take up Mortgage Reducing Term Takaful ( MRTT) should the unexpected occur, resulting you incapable of servicing your home instalments. Takaful coverage will also have your back in the event of your death or Total Permanent Disability ( TPD).
You have an option to subscribe to Long Term Houseowner Takaful (LTHT).
What can I gain from Baiti Home Financing?
- Greater flexibility - you have the option to defer the payment of two monthly installments with a Payment Holiday every November and December.
- Enjoy No Payment During Construction for up to two years for selected residential projects
- Better costs savings with the exclusion of a processing fee and 20% discount on Stamp Duty for Perfecting The Bank’s Securities Documentation
What documents do I need to make a home loan application?
- NRIC photocopy
- Sales and purchase agreement
- Photocopy of title head
- Latest financing or loan statement
- Latest 3 months salary Slips
- Latest 3 months salary slips crediting account statements
- Employer's confirmation letter
- Annual income statement/ BE form/ EPF statement
- NRIC photocopy
- Company/Business registration
- Latest 6 months bank statement
- Latest 3 years financial statement
- Latest Borang B