Affin Bank is one of the leading banks in Malaysia. You can approach the bank for a wide assortment of consumer banking, business banking, and investment management services. The bank has an exclusive segment for Islamic banking. The products and services offered under this segment follow the Shariah concept as per the Islamic banking law.
You can buy a new house with the help of Islamic home financing offered by the bank known as Affin Home Financing-i. This is given according to the Shariah concept of Musharakah Mutanaqisah or Diminishing Partnership.
You’re probably eligible for an Affin Islamic Bank Home Loan if you are
At least 21 years old
Less than 70 years old
Salaried / Self-employed
with regular income
Earn more than the minimum
Your Affin Islamic Bank Home Loan amount eligibility is based on these factors
Instalment limited to about 50%
of monthly income
Loan capped @ Up to 95% of property value, inclusive of MRTT
Instalments of other loans lower
Increase your eligible Affin Islamic Bank Home Loan amount by these steps
Make your spouse a co-applicant,
and her income will add
to your eligibility
Choose longer tenure loan up to 35 years
Alternatively add your parents
Documentation needed to apply for an Affin Islamic Bank Home Loan
- 1. Applicant(s) Identity Card(s).
- 2. Title Deed.
- 3. Income Tax (last 3 years- Borang B/BE/E-filing with tax receipt/ cash pay-in slip/ cheque pay-in slip with clearance proof) (where applicable).
- 4. Sale & Purchase Agreement/Booking Receipt
- 5. Documentation for salaried applicants:
- Payslips (last 3-6 months), (12 months for variable income)
- EPF statement (last 12 months)
- Bank's Savings Account or Current Account statements (last 6 months) where salary was credited
- Employment confirmation Letter (if current employment is less than 6 months)
- 6. Documentation for self-employed applicants:
- Business Registration / Form 24 & 49
- Business Current Account Bank statements (last 12 months)
- Personal Savings & Current Account Bank statements (last 12 months)
- Financial Statements (last 3 years) with latest Company Profile
Affin Islamic Bank Home Loan Interest RatesUpdated on 20 Nov 2017
|Margin of Finance||Up to 95% of property value, inclusive of MRTT|
|Guarantor Requirement||No Guarantee Required|
Features and benefits of Affin Islamic Housing Loan
These are the features and benefits of this financing facility:
- Under this scheme, you and the bank will own the house together. Both the borrower and the bank will have ownership rights of the living space.
- Affin Bank will then lease the space to you and this is known as Ijarah.
- The borrower will have to make payments in monthly installments. The financing will be fully done after the borrower pays all the amounts and gains complete ownership of the house.
- You can take this financing for acquisition of house as well as for refinancing.
- This scheme charges rent according to daily rest.
- You will typically have to repay your financing within 35 years or before you turn 70 years, whichever is earlier.
- You can enjoy 20% discount on stamp duty that you have to pay for the principal document when you take Islamic Home Financing-i Product. This promotion is valid until 31st December 2017.
Types of Affin Islamic Home Financing-i schemes
These are the different kinds of Affin Islamic Home Financing-i:
- AFFIN Home Invest-i: This product can be taken if the value of the house is RM200,000 and higher. This product does not have a lock-in period. The margin of finance for this scheme is up to 95%.
- AFFIN Home Assist Plus-i: The margin of financing for this scheme is 90%. The property that you want to buy should be at least RM100,000 and below RM200,000.
- AFFIN Credit Plus-i: For this product, you will get up to 95% as the margin of financing. You can take this financing as an investment as well as for personal use. The MRTT financing for this option is 5%. It gives funds for unencumbered spaces. You will get remortgage financing for commercial spaces as well as encumbered and fully constructed spaces.
- AFFIN Invest Plus-i: It gives term financing to limited companies so that they can invest funds in financing, acquiring, and refinancing a living or commercial space. The margin of financing for a commercial space is up to 85% and for a living space is up to 90%. The minimum financing amount is RM500,000 and the maximum financing amount is RM5,000,000. The maximum loan period is 20 years.
- AFFIN BNM Priority Sector Home Financing-i: This product can be used for living spaces that do not cost higher than RM300,000 (Sabah and Sarawak) and RM250,000 (Peninsular Malaysia). The margin of finance is up to 90% OMV or S&P Price + 5%. The MRTT is mandatory for this product.
- AFFIN Premier Corporate Home Financing-i: This home financing scheme can be used for houses that cost RM150,000 and higher. You will receive up to 95% as your margin of financing. You can choose an MRTT with this product for securing your family.
- AFFIN Home Build-i: This product is good for financing as well as refinancing your house. The margin of finance for buying a residential land is up to 85% and for constructing a house is up to 85%. You will have to pledge the house or land as collateral.
- AFFIN Extra Plus-i: This is a term financing that is given to borrowers who have an Affin mortgage already. This is given if the borrower has been making repayments promptly.
These are the rental rates for the different Islamic home financing schemes offered by Affin Bank:
|AFFIN Home Invest-i||BR+0.66% p.a.|
|AFFIN Home Assist Plus-i||BR+1.51% p.a.|
|AFFIN Credit Plus-i||
Vacant factory lot: BR+1.76% p.a
Vacant industrial land: BR+4.61% p.a.
Higher than RM1.0 Mil: BR+0.81% p.a.
Higher or equal to RM400,000 but lesser than or equal to RM1.0
Mil: BR+0.86% p.a.
Lesser than RM400,000: BR+1.01% p.a.
|AFFIN BNM Priority Sector Home Financing-i||BR+1.61% p.a.|
|AFFIN Invest Plus-i||
Above RM500,000 but lesser than RM1.0 Mil: BR+0.91% p.a. RM1.0 Mil and above: BR+0.81% p.a. Vacant residential land or bungalow lots: BR+3.11% p.a
Greater than RM500,000 but lesser than RM1.0 Mil: BR+1.11% p.a. RM1.0 Mil and higher: BR+1.01% p.a. Vacant industrial land or factory lot: BR+4.61% p.a.
|AFFIN Premier Corporate Home Financing-i||BR+1.11% p.a.|
|AFFIN Home Build-i||Home Build-i: BR+1.11% p.a. daily rest Land Invest-i: BR+2.11% p.a. monthly rest|
|AFFIN Extra Plus-i||BR+1.01% p.a.|
Fees and charges
These are the fees and charges for the various Islamic home financing schemes offered by Affin:
|Letter of confirmation for EPF withdrawal||RM21.20|
|Redraw fees for additional payment (for each transaction)||RM26.50|
|Processing fee||No fee|
|Security document retrieval fee (for each request and for full assortment of documents)||RM31.80|
|Redemption statement (for each account for each request)||RM53.00|
|Additional financing statement (for each request)||RM10.60|
|Stamp duty||According to the Stamp Act 1949 (Revised 1989)|
These are the eligibility criteria that will have to be followed while applying for this financing:
- You can be a Malaysian or a Non-Malaysian.
- You can be a Muslim or a Non-Muslim to apply for this financing.
- You will have to be at least 18 years old.
How to apply for Affin Bank Islamic home financing
You can fill the mortgage financing application form available on the bank’s website. You can then submit it at an Affin bank branch. You can also visit the branch to meet a representative and apply for it there. You can also get in touch with the bank by calling them at 03-5522 3000 for help.
How to make monthly installments payments
You can make monthly payments through the internet banking option available on the bank’s website.
You will have to submit the following documents:
- Most recent EPF statement
- Copy of NRIC
- Most recent Borang B (For self-employed people)
- Receipt of booking provided by property developer or Sale and Purchase agreement
- Most recent payslip for 3 months (For pensioners)
- For Affin Invest Plus-i, you will have to give Property Investment Holding Limited Companies.
- Most recent commission statements for 6 months (For people who earn commission)
- What will happen if I do not pay my monthly installments for Affin home financing on time?
If you fail to pay your installments for Affin home financing for 3 months, the bank will change the Ijarah rate to BR+4.35% p.a. This will be reflected in your letter. The bank will not give you any notice before they change the rate.
- What does Mortgage Reducing Term Takaful (MRTT) cover?
This Takaful is not mandatory when you take this financing. When the borrower suffers from death or permanent disability, the Takaful will help in paying the unsettled amounts of your financing.
- Do I have to pay a valuation fee for Affin Islamic financing?
Yes, you will have to pay a valuation fee only for constructed properties.
- Are there any restructuring or rescheduling fees for Affin Islamic home financing?
No, you do not have to pay any restructuring or rescheduling fees for this financing.
- Under Affin Islamic home financing, will the bank give its share of the property for lease when it is being constructed?
Yes, the bank’s share of property will be leased to you even when it is being constructed. This is known as forward leasing. It is given according to the concept of Ijarah Mawsufah Fi Zimmah.
- Under AFFIN Invest Plus-I, what is the maximum margin of finance (MOF) for a business property?
Under AFFIN Invest Plus-I, your margin of finance (MOF) for a business property will be up to 85%.
- Is AFFIN Extra Plus-i given for properties that are being constructed?
No, this term financing is given only for properties that are fully constructed.