You have found yourself a dream home and you feel like a top bloke with all that spare money in hand. It’s time to flaunt your success a little and invest on a roof over your head. You most certainly have enough for down payments, lawyer fees, stamp duties and the nitty-gritty fees that come along with it.
What about payments for the rest of the house? Without a shadow of a doubt, you’re probably already photocopying documents and ready to head out to a bank to apply for a mortgage. Can’t decide where to go, top bloke? Let us guide you.
AmBank Islamic Home-i
Ambank Islamic Home-i is a semi-flexi Islamic home loan. A semi-flexi home loan works a little different from the term loan financing. It allows you to start paying extra whenever you have access cash in hand to lower the interest being charged to your remaining principal amount.
This does not directly change the minimum amount you pay from month to month but it will gradually shorten the tenure of your loan if you keep contributing extra. You’re probably wondering, doesn’t that work with any type of loan? Pay extra and shorten its term?
Non-flexi loans usually allow you to do just that, but the money sits in the account as advance payment. This money does not really do anything and if you do need to stick your hands in this pot, you won’t be able to access this advance payment from the account.
If you were to use a semi-flexi loan instead, and you took a loan for RM500,000 and deposited RM25,000 of access cash into the account, interest will be charged on the remaining RM475,000 (RM500,000 – RM25,000). The access money sitting in the account off-sets a portion of the principal amount. It will save you some money every month and eventually shorten the tenure by paying off the full amount sooner.
So what happens if you find yourself in need of some of these savings? The semi-flexi loan allows you to withdraw the excess amount that you deposited earlier, at anytime. There will be a nominal fee that accompanies the withdrawal, but it saves you a significantly higher amount on interest against a withdrawal fee.
AmBank HomeLink / AmBank Islamic HomeLink-i
These two amazing options open up even more flexibility should you find the AmBank Islamic Home-i not quite right for you. The Ambank HomeLink is a conventional banking flexi loan, while the Ambank Islamic HomeLink-i is an Islamic flexi financing option.
Just like the semi-flexi option explained above, the AmBank HomeLink and AmBank Islamic HomeLink-i both work in similar fashion. If you find yourself with extra cash in hand, you could deposit the money into a current account that is linked to the home loan account. All extra money sitting in the current account will be used to off-set against the principal amount and interest will only be charged to the remaining balance.
You are probably wondering how is this different from the semi-flexi? Full-flexi loans have a current account that allows you to withdraw your funds at anytime without additional charges. You may withdraw as often as you like using the convenience of the ATM, AmOnline or by issuing cheques. The bank does however charge a monthly maintenance fee for the current account facility.
This works great if you require a lot of flexibility and liberty to move money around. It allows you to put your savings into an account that helps you save further on your housing loan.
Eligibility and Requirement
To be eligible for the loan, you should be earning a minimum of RM24,000 per year. You must also be of legal age, 18 years, should you want to apply for any of these fantastic home loan packages. You may stretch the term of up to 35 years (loan tenure) or 70 years (applicant’s age), whichever comes first.
The loan is open to permanent residents and foreigners residing in Malaysia with valid working permits.
AmBank’s Amazing Solutions for All
When finding the right property, be sure to also find the right mortgage solution to support your long term commitment. Take some time to research and be certain of the product of your choosing as it stretches over many, many years.
Apply with Ringgitplus to receive a exclusive portable garment steamer and robot vacuum upon loan disbursement.
