What should I know about this Islamic home financing?
Affin Tawarruq Home Financing-i is a conventional Islamic mortgage that adopts the principal of Tawarruq – a Shariah approved transaction where a buyer buys property on deferred payment and subsequently sells the property to a third party (bank) for cash, at a lower price.
In order to be entitled for this mortgage, your property must be worth at least RM200,000. You can borrow up to 90% of the property value and an extra 5% for Mortgage Reducing Term Takaful, subject to the bank's discretion and approval
What is the maximum tenure for Tawarruq Home Financing-i?
Affin Islamic Bank allows you to commit up to 35 years, but not exceeding the age of 70. While you can enjoy lower monthly commitment if you choose a longer tenure, you will have to pay more profits overall.
Can I settle my mortgage ahead of schedule?
In case you’d like to repay your home financing early to get some extra savings, Affin Tawarruq Home Financing-i allows you to fully settle your mortgage before maturity. What's more, there's no lock in period imposed hence no early settlement penalty fee!
To help you save even more, you can even get a rebate which will be calculated by Affin Islamic Bank upon early settlement.
Will my profit rates increase for this Islamic home financing?
Affin Tawarruq Home Financing-i adopts a floating interest rate which is subject to change according to the market performance. But no worries, Affin Islamic Bank will cap the profit rates so you won’t have to worry about any sky high jumps.
Who is eligible to apply for this Islamic mortgage?
All individuals are welcome to apply as long as you meet the minimum income and age requirements for this home financing. If you’d like to apply, you’ll have to prepare the following documents:
Basic documents:
- Copy of NRIC
- Sale & Purchase Agreement
Salaried employee:
- 3 months pay slips
- 6 months commission statements (for commission earner)
- EA form / Borang B
- EPF statement
- 3 months salary bank account statement
Self-employed:
- Borang B, supported by tax payment receipt
- 6 months business account statements
- 6 months personal account statements
- Profit & Loss account
