What is KFH Ijarah Muntahiah Bi Tamlik Asset Acquisition Financing-i?
Okay, it should be clear from the name that this is an Islamic home loan, tailor-made for completed properties and based on the Syariah concept of Ijarah Muntahiah Bi Tamlik. In layman's terms that's a contract between you and the bank giving you the right to use the property in exchange for "rental" payment. A separate transaction at the end of the leasing period will purchase the property from the bank.
Kuwait Financing House will be able to finance up to 90% of the property's value, plus an additional 5% if you include the MRTT and a package offers zero moving cost (ZEC) to cover your entry cost , which consists of legal fees and stamp duty.
Can I choose any types of home acquisition packages?
There are 3 type of packages which KFH Malaysia is offering to customers. Each package varies in terms of profit rates and financing amount.
For example, you can borrow up to RM500,000 and enjoy a profit rate as low as BR + 1.49% p.a. under the Non Zero Entry Cost (Non ZEC). Or if you want to borrow higher than RM500,000, you'll will paying a monthly rental consisting of BR + 1.89% p.a.under the Zero Entry Cost (ZEC) package.
|Financing Amount||Package||Profit Rate|
|< RM250,000||Non ZEC||BR + 1.69% p.a.|
|> RM250,000 < RM500,000||Non ZEC||BR + 1.49% p.a.|
|> RM500,000||ZEC||BR + 1.89% p.a.|
( KFH Malaysia current Base Rate is 3.10%)
So, these rental payments, how are they calculated?
Like any Islamic home loan, you are required to pay a monthly lease amount calculated on either a fixed or floating rate, based on what is agreed between you and the bank. Note that choosing a floating rate means payments may vary due as the IBR changes and your interest rate updates.
It's useful to know that the bank profit rates will be higher if you decide to take on the MRTT insurance and if you opt for the bank to absorb your entry fees.
Do I need any insurance for the KFH home loan?
That's a definite yes. You have to take up the House Owner Takaful. You'll be recommended MRTT too, and that's not a bad idea as you'll have your home payments covered in the event of any unfortunate circumstances. Here's the good bit: If you settle your loan early, you'll be eligible for a rebate on your insurance premium.
What do I need to apply for this loan?
You are allowed to apply individually or as a joint partnership.
Personal Bank Statement
Certificate of business registration
Personal bank statement
Business bank statement
Variable income applicant:
Annual commission payment
Personal bank statement