How does Wahdah Home Refinancing-i work?
Bank Islam Wahdah Home Refinancing-i offers homeowners a solution to help lower their monthly instalments and allows them to have extra cash by capitalising on their home's appreciation value.
Bank Islam can finance up to 90% of the value of the completed property excluding:
- Mortgage Reducing Term Takaful (MRTT) / Mortgage Level Term Takaful (MLTT) – (compulsory)
- Houseowner/Householder Takaful Plan (if applicable)
- Stamp Duty
- Legal fees
- Valuation fees
This Islamic mortgage also features (1) no lock-in period, (2) no compounding elements, (3) no processing fee and (4) no penalty for early settlement.
You can apply for tenures as long as 35 years or up until 70 years old, whichever is earlier. But of course, it all entirely depends on your creditworthiness and Bank Islam's approval.
This loan is applicable only for completed property and strictly for refinancing purposes only. So if you're thinking about jumping ship to another bank, maybe this mortgage is a good place to start.
Here are the profit rates and the eligible property value for your reference.
| Property Value | Profit Rate |
| RM300,000 and below | Standardised Base Rate (SBR) 3.00% p.a. + 1.10% p.a. = 4.10% p.a. effective profit rate |
| Above RM300,000 | Standardised Base Rate (SBR) 3.00% p.a. + 0.90% p.a. = 3.90% p.a. effective profit rate |
Are there any fees that I should take note of?
According to Bank Islam, here are the fees that you should take note of:
- Agency fee (this is currently waived): RM25 for the Appointment of the Bank as Purchase Agent (ABPA) and RM25 for the Appointment of the Bank as Sales Agent (ABSA)
- Request for EPF withdrawal (manual application): RM20 per request
- Request for EPF withdrawal (online application): RM10 per request
- Custodian fee for safekeeping of Security Documents for the fully settled facility: RM80 annually
- Request for Redemption Statement: RM50 per request
- Request for a copy of Security Documents: RM50 per request
- Takaful Contribution: As per the contribution amount required by the Takaful Operators to cover the whole outstanding financing amount in the event of death and TPD of the customer
- Legal fees on securities documentation: Legal fees and incidental expenses related in connection with the facility
- Valuation fees: Applicable for completed property or own construction of property by the appointed contractor
- Stamp Duty: As per the Stamp Duty Act 1949 (Revised 1989)
- Disbursement fee: Include fees for registration of charge and other related charges
- Cancellation of the Facility: All costs (if any) for the preparation and registration of securities documents that the Bank has incurred in connection with the facility including the expenses incurred during the claim process in the facility cancelled
What are my obligations?
As with any Islamic home loan your monthly instalments are calculated based on the Profit Rate, which in turn is determined by the Islamic Base Rate (IBR). Luckily for you, the profit rate is capped at a ceiling rate to hedge you from any sudden hikes in the IBR.
However, do note that if you are unable to service your repayments, it would be wise to contact Bank Islam to negotiate an alternative for payments and avoid foreclosure.
Do I need Takaful coverage?
By taking up MRTT or MLTT takaful, you will be covered should any unexpected event occur. In the event of your death or Total Permanent Disability (TPD), the said Takaful coverage will pay the reduced sum covered as per schedule.
You also have the option to subscribe to the Houseowner/Householder Takaful Plan. Fire insurance, on the other hand, is compulsory for most mortgages. Bank Islam should be able to furnish you with more details if you require it.
Am I eligible to apply?
You are eligible to apply for Bank Islam Baiti Home Financing-i if:
- You are a Malaysian citizen
- Aged 18 years old and above
- Not bankrupt or have any legal actions
- Employed or own a business of at least 3 years
- Minimum 1 year's worth of good payment track record
What documents are needed when applying?
This is a complete list of acceptable income documents to be used when applying for the Bank Islam Wahdah Home Refinancing-i with your loan officer:
Salaried applicant:
- NRIC photocopy
- Sales and Purchase Agreement
- Latest 3 months salary slips
- Latest 3 months salary crediting account statements
- Employer's confirmation letter
- Annual income statement/ BE form/ EPF statement
- Any other supporting income document
Self-employed applicant:
- NRIC photocopy
- Sales and Purchase Agreement
- Company/Business registration
- Latest 6 months bank statement
- Latest 3 years financial statement
- Latest B Form
- Any other supporting income document
