The eligibility criteria for Bank Islam’s Baiti Home Financing-i includes applicants must be Malaysian citizens aged 18 and above. It is important that applicants are not bankrupt or subject to any ongoing legal actions. They must be gainfully employed or have operated a profitable business for at least three years. A minimum of one year of good payment track record is also required.
For instance, if you are a salaried employee, you will need to provide documents such as your NRIC photocopy, the Sales and Purchase Agreement, the latest three months’ salary slips, salary crediting account statements, an employer’s confirmation letter, and an annual income statement. Self-employed individuals need to supply a company registration document, the latest six months’ bank statements, the latest three years’ financial statements, and a B Form, among other documents.
Bank Islam Home Loan Eligibility
How Does One Apply for the SJKP Housing Scheme?
The SJKP Housing Scheme is designed to assist first-time home buyers with purchasing residential properties. Eligibility for this scheme requires applicants to be Malaysian citizens aged 18 and above, and they must not have previously owned a home. The maximum monthly income per applicant is capped at RM11,000. This scheme is open to various employment segments including fixed income earners, non-fixed income earners, self-employed individuals, and gig workers.
Required documentation varies based on employment type. For example, fixed income earners must provide their latest three-month salary slips, salary crediting statements, and EPF statements. Gig workers must submit their latest six-month bank statements, payment vouchers or receipts, and a letter of employment contract, among other documents.
What Are the Key Features of Bank Islam’s Housing Loans?
Bank Islam’s housing loans, particularly the Baiti Home Financing-i, offer several attractive features. The margin of financing can be as high as 90%, with a tenure of up to 35 years or until the applicant reaches the age of 70. Notably, there is no lock-in period, no compounding elements, and no processing fee attached. The profit rate is competitive, with a Standardised Base Rate (SBR) currently set at 3.00% per annum.
For properties valued at RM300,000 and below, the effective profit rate is as low as SBR + 0.95% p.a. For properties above this value, the rate is SBR + 0.80% p.a. This makes Bank Islam’s offers among the more competitive in the market, especially for first-time buyers looking for Shariah-compliant financing options.
What Are the Fees and Charges Associated With These Loans?
Bank Islam’s housing loans have several associated fees, though many are waived, enhancing their appeal. Notable fees include a late penalty fee of 1% per annum on overdue instalments. There is no early settlement fee due to the absence of a lock-in period. However, fees apply for services such as Redemption Letter issuance at RM50 per request and a Letter for EPF Withdrawal at RM20 per request.
For instance, the Takaful Contribution aligns with the amount required by Takaful Operators to cover the outstanding financing amount in case of death or Total Permanent Disability (TPD) of the customer. Legal fees, valuation fees, and stamp duty are additional costs that borrowers should anticipate.
Is Takaful Coverage Mandatory for Bank Islam Housing Loans?
Takaful coverage is mandatory for Bank Islam housing loans. Applicants must take up either the Mortgage Reducing Term Takaful (MRTT) or the Mortgage Level Term Takaful (MLTT). This requirement ensures financial protection in case of unforeseen circumstances that may prevent the borrower from servicing the loan. Additionally, borrowers have the option to opt for a Houseowner/Householder Takaful Plan if applicable.
This coverage is crucial as it provides a safety net, ensuring that the borrower’s family is not burdened with outstanding debts in the event of the borrower’s death or permanent disability.
What Makes Bank Islam’s Housing Loans a Preferred Choice?
Bank Islam’s housing loans are preferred by many due to their Shariah-compliant structure and customer-friendly terms. The Baiti Home Financing-i offers no compounding elements and a full suite of Shariah-compliant packages. Additionally, the absence of a lock-in period and the provision for up to 90% financing make it an attractive option for many homebuyers.
For example, the optional payment holiday feature in November and December helps borrowers manage their finances better during festive seasons. The flexibility and competitive profit rates offered make Bank Islam a top choice for many seeking home financing solutions in Malaysia.