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Common
Questions About Interest Rate
1. What is your interest rate•
Please refer to AIA Home Loans
Terms & Conditions section for more specific details. All packages are
for a limited time period only.
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2.
What are the benefits of the Fixed Rate Loan•
Fixed Rate Loan offers stability by locking in at a fixed rate so
your monthly installments are constant throughout the duration of
the loan. Otherwise, fluctuating interest rates may exhaust your
financial resources as an increase in monthly installments 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. |
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Common Questions
About Prepayment Fee
1. Does
AIA charge prepayment fee•
Please refer to
AIA Home Loans Terms & Conditions
for more specific details.
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. AIA also financed properties under
construction. This applies only for selected developers and projects. For
further information, please refer to
AIA Home Loans Terms & 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•
AIA home 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, AIA's 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, AIA refinance properties that are encumbered or currently charged to
another financial institution. AIA's 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 cash out 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, AIA's 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 for 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 provides financial protection for your
family when calamity befalls such as death or permanent disability. In some
instances, the savings made from our low interest rate helps to subsidize
the 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 AIA's 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 AIA 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 AIA 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. AIA 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•
AIA have a variety of life policies to suit your needs and AIA's 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
Husband•s income RM8,000 (8)/10 RM200,000 x 8/10 = RM160,000
Wife•s income RM2,000 (2)/10 RM200,000 x 2/10 = RM40,000
Sources: AIA Malaysia Website
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