Property Financing-i (Tawarruq) – Baiti Home Financing Review

Let’s take a look at Bank Islam’s property loan which is Property Financing-i (Tawarruq).

It has financing of up to 90%

It can be used for:

  • Mortgage Reducing Term Takaful (MRTT)
  • Long Term House Takaful (LTHT)
  • Stamp Duty
  • Legal Fees
  • Valuation Fees

The tenure is normal. Up to 35 years or age 70, whichever is earlier.

The financing rate is around 3.9 – 4.2% so it’s quite competitive.

You can get 20% discount on Stamp Duty. You can get it if you are perfecting The Bank’s securities documentation (obviously it is subject to change from time to time)

There is no processing fee.

There is payment holiday every November and December.  Basically you don’t have to pay on November and December if you choose… but the interest is still chargeable though.

At the end of the tenure, you can choose to pay all or reschedule. Maybe I’ll create a post detailing this.

You can apply if your age is 18 to 70 years old and a Malaysian citizen.

You must not be bankrupt or have any legal action on your name.

What do you need to apply for this loan?

Photocopy of identity card

Sales & Purchase Agreement

For salary earners :

  1. Latest 3 months salary slips
  2. Latest 3 months salary crediting account statements
  3. Employer’s confirmation letter
  4. Annual Income Statement/ BE Form / EPF statement
  5. Any other supporting income documents

For businessmen :

  1. Company / Business Registration
  2. Last 6 months’ Bank Statements
  3. Latest 3 years Financial Statement
  4. Latest B Form
  5. And obviously any other supporting income documents.

Let’s talk about another scheme covered under Bank Islam property loan.

SJKP Housing Scheme

This scheme is to cater the purchase of resident house under the priority sector for low cost & medium cost property costing up to RM150,000.

It has maximum financing of up to RM300,000

You can have a 100% margin of financing (MOF) including Takaful under this scheme.

Eligibility criteria:

You have to be 18 to 65 years old to apply.

If you have non fixed income, you need to have monthly income of more than RM1,000, or fixed monthly income earner with monthly income of more than RM1,000.

You’ll get first house financing for own occupancy.

And same with above, you must not be a bankrupt person or have any legal action on your name.

Required document for SJKP

  1. Photocopy of identity card
  2. Sales & Purchase Agreement

For businessmen :

  1. Company / Business Registration
  2. Income must be verified and confirmed by Village Headsman (Penghulu/ Penggawa) or JKKK or Government Officer Category A
  3. Last 6 months’ Bank Statements
  4. Latest 3 years Financial Statement
  5. Latest B Form
  6. Any other supporting income documents

For fixed income earner:

  1. Latest 3 months salary slips
  2. Employer’s Confirmation Letter
  3. Annual Income Statement
  4. Any other supporting income documents

Now let’s talk at another scheme:

“My First Home Scheme”

This scheme provides the financing facility for the purchase of residential property value RM100,000 up to RM500,000.

The tenure: up to 35 years or age 65, whichever is earlier.

MOF is up to 100% against SPA/OMV, whichever is lower + 5% for MRTT and LTHT.

Who’s Eligible?

A Malaysian citizen

Young adults, age and not above 40.

First time home buyer for owner occupation

Your income must not exceed RM5,000 per month and for joint customers, the combined monthly income must not exceed RM10,000* (*regardless single or joint applicants, the monthly income for respective individual customer must not exceed RM5,000)

You must be employed for this scheme.

Documents You Need?

Same with Baiti Home Financing

Property Loan with PR1MA?

Bank Islam also offer financing for Project under PR1MA for those are eligible.

You can take a look at Bank Islam’s website for information on this scheme.

 

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