How does Wahdah Home Financing work?
Bank Islam Wahdah Home Financing adheres to the set rules of Tawarruq (Commodity Murabahah). Tawarruq is the act of buying of an asset with deferred price, subsequently selling it to a third party to get cash.
Bank Islam can to finance up to 90% of the value of the property for tenures that last as long as 35 years. But of course, it all entirely depends on your creditworthiness and Bank Islam's approval.
This loan is applicable only for completed property and strictly for refinancing purposes only. So if you're thinking about jumping ship to another bank maybe this mortage is a good place to start?
What are my obligations?
As with any conventional Islamic home loans your monthly installments are calculated based on the Profit Rate, a predetermined mark up price for your property by the bank, which in turn is determined by the IBR. Luckily for you the profit rate is capped at around 10.5% to hedge you from any sudden hikes in the IBR.
Bank Islam can offer you a choice of fixed tier financing periods for your completed property. For the first couple of years you can enjoy interest rates below 5%, which will increase up to 7.5% for subsequent years. This might be a big help for folks struggling to cope with the cost of repairs or refurbishments when refinancing.
And the insurance? Do I need any?
By taking up MRTT insurance, you will be covered should any unexpected event occur. In the event of your death or Total Permanent Disability Takaful coverage will pay the reducing sum covered as per reducing sum covered schedule. Fire insurance is compulsory for most mortgages.
What do I stand do gain from The Bank Islam Wahdah Home Financing?
- More flexibility when you have the option to differ the payment of two monthly installments with a Payment Holiday every November and December.
- Better cost savings with the exclusion of a processing fee and 20% discount on Stamp Duty for Perfecting The Bank’s Securities Documentation.
What documents are needed when applying?
This is a complete list of acceptable income documents to be used when applying for the Bank Islam Wahdah Home Financing with your loan officer:
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
Latest 6 months bank statement
Latest 3 years financial statement
Latest Borang B