What do I need to know about Bank Muamalat Home Financing-i?
Home Financing-i from Bank Muamalat is a syariah compliant home loan that operates much like a conventional mortgage: the loan principal is repaid with with fixed monthly installments. To help you manage your budget you can deposit cash in excess of your repayments but, unlike a flexi loan, these payments will be considered as advances on your monthly mortgage bill and will not reduce your loan principal.
Subject to credit approval Bank Muamalat can offer up to a 90% margin of finance. To ease the cost of buying and moving into a new home you can apply for 100% financing where the additional 10% is used to offer zero moving cost (ZEC) on legal fees as well as to cover fees associated with insurance and conveyancing.What are my obligations?
Well, much like any other borrowing, you will have to make a monthly repayment on your mortgage. The Home Financing-i interest rate is linked to the Islamic Base Rate or IBR, implemented in 2015, and as that rate may move up (or down) in the market you might run the risk of paying more interest. Thankfully, Bank Muamalat has guaranteed peace-of-mind with a competitive profit rate ceiling of 10.5%.
Should I get the insurance with my home loan?
Sadly, we won't stay healthy forever, so it would be highly advisable to take up Muamalat's offer of MRTT, protecting yourself and your family against unforeseen circumstances that could place home in jeopardy.
What documents do I need to apply for this mortgage?
If you're a salaried employee:
- Photocopy of MyKad
- Latest 3 months salary slips
- Latest J/ EA Form
- Latest 3 months Bank Statement
- Confirmation letter from employer
- Original S&P Agreement/ booking sheet / down payment receipt
And if you're self employed you'll also need:
Business Registration, Form 24, Form 49, Form A or B, Form D