If standard lending practice have got you queasy over the interest charges, ever looked into the possibility of owning a house through joint venture or partnership? RHB Islamic has a solution that might meet your particular financing need via Equity Home Financing-i.
How RHB Equity Home Financing-i works?
In straightforward language, Equity Home Financing-i by RHB Islamic is an Islamic version of lease to own home financing means based on the Diminishing Partnership (Musharakah Mutanaqisah) and Leasing (Ijarah) contracts.
Essentially, you are partnering with RHB Islamic for the purchase of your house. RHB Islamic can finance up to 90% of the property value, with profit rate offered on variable rate basis pegged to Islamic Base Rate. You only provide 10% to cover the remaining portion of the property price.
Based on the 90:10 ratio, the Islamic bank has the majority shares of the property. As you pay your monthly rental (principal plus profit), you are gradually purchasing RHB Islamic's share of the property until the end of your tenure, which you’ll own 100% ownership of your home.
Can I make additional payment to shorten home loan tenure?
As this a full flexi Islamic home loan, you can make excess payments on top of your regular monthly installments to reduce your profit charges and principal outstanding. Doing so will help reduce the remaining balance of your home loan quickly as the profit is calculated on daily rest.
Can I redraw excess cash that I’ve paid onto the principal?
Yes you can. Before that, you will need to open an Islamic Current Account to enjoy this feature. The best thing about this cash withdrawal facility is that you can access extra money deposited by way of additional payment as well as partial prepayment, subject to the amount in the redraw bucket.
Do I need a Takaful coverage for this Islamic home loan?
House Owner Takaful is compulsory; whereas it is optional and highly advisable for you to take up Liability Term Reducing Takaful (LRTT) or Mortgage Term Reducing Takaful ( MRTT) to alleviate the burden of settling the financing on your next of kins.
Am I eligible to apply?
Let’s check: If you are 18 years old and above and holding an NRIC, then you are eligible.
For foreigners or expatriates, you are required to be under the MM2H programme as you need to apply for a MM2H visa if you are married to a Malaysian.
What do I need prepare for this Islamic home loan application?
Copy of Sale and Purchase Agreement or Booking Receipts
- Copy of your NRIC or passport
- Latest 3 months salary slip
- Latest 3 months salary crediting statement
- Latest EPF statement
- Latest BE Form + Tax payment receipt
- Sole Proprietor & Partnership – Form A & D
- Private Limited – Form 24 & 49
- Latest Form B + Tax payment receipt
- Latest 6 months current account statement