A unique housing loan package that offers the following options:-

AIA HOME LOAN PACKAGES	Interest Rates
	LOAN TO VALUE (LTV)More than 80% to 90%	LOAN TO VALUE (LTV)80% and BELOW
Package 1 (Zero Moving Cost -ZMC)	6.35% Fixed for entire loan tenure	6.25% p.a. Fixed for entire loan tenure
Package 2 (Non Zero Moving Cost)	5.99% Fixed for entire loan tenure	5.89% Fixed for entire loan tenure
Minimum Loan Amount: RM 100,000

Important Note : -

• All the above packages are applicable for both under construction and completed properties except for Package 4.
• Loan To Value is also referred as the margin of financing (ie. the percentage of loan over the current market value/purchase price)

Benefits

• Flexible prepayment - No prepayment fee will be levied if prepayment is from own savings, Employees Provident Fund or if existing loan is replaced simultaneously by another loan from AIA for the purchase of another residential property for own occupation.
  
• Guaranteed fixed interest rate for the entire loan period or up to 30 years. Absolutely no fluctuations in interest rate. The one opportunity to lock in at these fantastic low fixed rates for up to 30 years.
  
• Assured financial planning and peace of mind. Fixed monthly repayment helps to plan and chart a clearer financial planning for the family as housing loan instalment is one of the highest loan commitments in the family.
  
• $ Daily Interest - Loan calculation based on daily interest.
  
• Definition of zero moving costs - Zero moving cost are fees that will be borne by AIA which includes only valuation fees, professional legal fees, stamp duty, discharge and disbursements (such as registration fees, land office and bankruptcy searches.) Other fees such as administration charges by developers etc are excluded.

Margin of Financing (MOF)

• MOF is based on Open Market Value (OMV) or purchase price whichever is lower for new purchase.
• OMV shall be based on the valuation report prepared by AIA panel of valuers.

	Landed Properties	Non-landed Properties
New Purchase (Up To) Refinancing (Up To)	90%* 80%*	80%* 80%*

Loan Tenure

• Up to 30 years or age 60 whichever is earlier.

Loan Eligibility

• For employed category

(i) Monthly instalment and other loan repayments must be within 38% for single applicant's monthly income.

(ii) Monthly income for employees is defined as basic salary with fixed allowances and does not include part-time income, sales commission or non-contractual bonus or rental income.

• For self-employed category

(i) Monthly instalment and other loan repayments must be within 33% of the applicant(s)' monthly income based on average three (3) years declared income Form J(1).

(ii) The business established for at least five (5) years and operating profitability for the past three (3) years.

(iii) Income substantiated with income tax form J(1) and financial statements.

(iv) Average monthly income will be based on three (3) years declared income in the income tax Form J(1).

Prepayment Fee

• There will be a pre-payment fee levied should the loan be refinanced within the first five (5) years from the date of first drawdown.

Prepayment fee can be waived if settlement or partial settlement is from own savings, EPF or sale of property.

The prepayment fee is chargeable at a rate of 0.35% times the number of remaining years of loan (not exceeding 4% but subject to a minimum rate of 2%) times the amount prepaid.

All the conditions regarding prepayment fee as stated above is excluding Package 1(Zero Moving Cost Package)

Specific Terms & Conditions for Zero Moving Cost Package

• A prepayment fee of 3% of the approved loan amount will be levied if the loan is settled within 5 years from the date of 1st drawdown.
• Acceptance of offer letter must be executed within 48 hours and loan documentation has to be executed within 5 working days from the date of acceptance in order to be eligible for the zero moving cost package.
• A cancellation fee of 3% on the loan amount will be imposed if loan is aborted after acceptance.
• Appointment of loan documentation solicitor and valuers is solely at the discretion of AIA Mortgage Loan Division.

Other Terms and Conditions

• Houseowner Insurance.
• All loans must be adequately protected by AIA Group Mortgage Reducing Term Assurance or AIA life policies (Life, Term or combination) on the total loan amount.
• Valuation reports and loan documentation are to be handled by AIA’s panel valuers and solicitors.
• All packages are for a limited period only and are subject to change.

1. What is your interest rate?
Please refer to our Terms & Conditions section for more specific details. All packages are for a limited time period only.

2. What are the benefits of the Fixed Rate Loan?
Fixed Rate Loan offers peace of mind by locking in at a fixed rate so your monthly instalments are constant throughout the duration of the loan. Otherwise, fluctuating interest rates may exhaust your financial resources as an increase in monthly instalments can be a burden especially when other costs of living are on the rise too. Although some financial institutions do not increase your installments, when the interest rate rises, the duration of the loan is extended as your installments are insufficient to cover the increased monthly interest which will eventually increase your principal loan outstanding. In AIA HOME LOAN you are in absolute control of the interest rate and installment. So, personal financial planning can be charted for a clearer financial future for you and your family.

Common Questions About Prepayment Fee

1. Does AIA charge prepayment fee?
There will be a prepayment fee levied should the loan be refinanced within the first five years from the date of the first drawdown. The prepayment is chargeable at the rate of 0.35% times the number of remaining years of Loan (not exceeding 4% subject to a minimum rate of 2%) times the amount prepaid. However, there is no prepayment charged when the loan is repaid with own savings, EPF or sale of property which makes it more cost-effective for customers who would like to settle their loan faster if they have additional cash.

Common Questions About The Type And Margin Of Properties Financed

1. What types of properties do you finance?
Completed landed residential properties e.g. single, double-storey link, semi-detached, bungalow, etc. We also financed properties under construction. This applies only for selected developers and projects. For further information, please refer to our terms and conditions.

2. Do you finance condominiums and townhouses?
Only selected condominiums and townhouses with or without strata title issued in Penang Island and Klang Valley.

3. Do you finance shop lots or industrial lots?
Our loan is currently open for residential properties only.

4. Can you finance a property located out of Klang Valley e.g. property in Melaka?
Yes, our program is tailored for properties within the Klang Valley, Penang / Seberang Perai, Johor Bahru, Batu Pahat, Seremban, Sg. Petani, Kulim, Ipoh, Kuantan, Malacca Town, Kota Kinabalu and Kuching Town.

Common Questions About Refinancing

1. Do you refinance properties?
Yes, we refinance properties that are encumbered or currently charged to another financial institution. Our margin of finance is between 70% - 80% of OMV (Open Market Value). The purpose for refinancing is to redeem the outstanding balance of your existing financier. Additional cashout for other purposes such as renovations, education and any other commitments are considered with the exception of business investments.

2. My property is currently encumbered, can I refinance the property for personal requirements?
Yes.

3. Do you finance construction of a house if my land has already been paid off?
Not at this present moment. Currently, our program finances completed landed residential properties and selected properties under construction by selected developers only.

Common Questions About Loan Application & Insurance

1.  If I am not an AIA policy holder, can I apply the loan?
Yes, as long as you are a Malaysian Citizen. However, you will need to purchase an AIA Group Mortgage Reducing Term Assurance or AIA Life Policy to secure the loan. The insurance policy is to provide protection and peace of mind to your family when calamity befalls such as death or permanent disability. In some instances, the savings from our low interest rate compared to other financial institutions helps to subsidize this repayment.

2.  If I have existing Life policies with other insurance companies, can I assign them to AIA?
Since this is a unique HOME LOAN package from AIA, the policy must be from AIA.

3.  I am married, can I apply as a single applicant?
It is one of our terms that your spouse be a joint applicant. Both husband and wife are to be joint borrowers. Exceptions can be considered.

4. Is a valuation report required?
Yes, a valuation report is required by our panel of valuers once the loan is approved.

Valuation is only waived for properties under construction or recently completed properties purchased from selected developers.

5.  Can we have our own solicitor’s firm to prepare the loan documentation?
You are required to use the solicitors on our panel.

6. I am healthy and I do not wish to buy insurance.
Health is fragile. Our well-being cannot be guaranteed in the next five or 10 years time. Life insurance, either a Mortgage Reducing Term, Life or combination of both provides the necessary funds for your family to settle the mortgage in times of need. As such, the unique AIA HOME LOAN protects you from fluctuating interest rates, fire, life and permanent disability.

7. Can I assign my existing AIA policy instead?
Yes. However, the coverage of the policy must not be less than the mortgage loan amount.

8. You can always sell my house if anything happens to me. After all, is the house not sufficient security?
AIA would rather not recall the loan and the property. A home is needed as a means of shelter. We are in the business of helping homeowners to protect themselves and this is the reason the unique AIA HOME LOAN helps you to achieve this objective.

9. Is Life Insurance or Group Mortgage Reducing Term assurance expensive?
We have a variety of life policies to suit your needs and our agent will assist in planning according to your requirements.

You can even opt for Group Mortgage Reducing Term assurance which involves only one lump sum payment and this insurance will cover you for the entire loan period. It is the most affordable form of insurance. Depending on your age and loan amount, it can be as little as RM18 a month.

10. If this is a joint loan application, how must we insure ourselves?
Required insurance will be based on the income of both applicants. For example, if the husband is paying for the loan, then insurance on the loan amount is to be taken by the husband. However, the proportion on insurance will depend on the income earned.

Eg. Loan RM200,000 Insurance