PRODUCT DISCLOSURE SHEET

Transcription

1 Seek clarification from if 1. What is this product about? This is a Shariah-compliant property financing facility for the purchase of either completed or under construction property. This facility is secured against residential properties. However, additional security such as guarantors, etc. may be requested depending on the credit assessment result. The facility may also be used for the following purposes: the purchase of residential properties 2. What is the Shariah concept applicable? The Flexi Home Financing- i is based on the Shariah concept of Commodity Murabahah. This is a buy and sell contract between the Bank and the Customer(s) whereby a specific Shariah compliant commodity will be identified and used as the underlying asset for the sale and purchase transaction between the Customer(s) and the Bank for the purpose of availing the funds for the financing. 3. What do I get from this product? a) Total amount financed b) Margin of financing c) Tenure (years) : [ ] : [ ]% : [ ] d) Profit Rate : Tier Profit Rate Effective Profit Rate Last Tier Base Financing Rate [ ]% [ ]% e) Contracted Profit Rate f) Bank s Sale Price : [ ]% : [ ] g) For Flexi packages : The Customer(s) is/are required to open a Special Mudharabah Current Account-i (SMCA-i). The closing balance in the SMCA-i at the end of the day will be used to determine the effective principal outstanding for the day profit calculation the financing. Note: 1

2 Seek clarification from if Base Financing Rate (BFR) [ ]% 4. What are my obligations? Scenario 1: Today (BFR = [ ]%) a ) Monthly Payments : Tier Payment Last Tier [ ] b) The total Payments is : * [ ] Important: Your Monthly Payments will vary if the BFR changes. Rate Today (BFR = [ ] %) Total profit charge at the end of the Tenure [ ] Total Payments at the end of the Tenure [ ] Scenario 2: If BFR goes up [ ]% a) Monthly Payments : Tier Payment Last Tier Rate Total profit charge at the end of the Tenure Total Payments at the end of the Tenure If BFR goes up [ ]% Scenario 3: If BFR goes up [ ]% a) Monthly Payment s : Tier Payment Last Tier Rate Total profit charge at the end of the Tenure Total Payments at the end of the Tenure. If BFR goes up [ ]% The customer has to service profit charge during construction period for property under construction. 2

3 Seek clarification from if Profit is calculated as per the below formula: Amount Disbursed x Effective Profit Rate x n / 365 * Total Payments is based on Contracted Profit Rate. Ibra (rebate) will be given on the difference between Contracted Profit Rate and Effective Profit Rate on monthly basis. The Bank shall grant rebate (Ibra ) to the Customer(s) on, but not limited to, the following events: i) There is a difference in Profit Portion Calculation based on the Contracted Profit Rate and Effective Profit Rate; ii) Partial settlement by the Customer(s); iii) The Customer(s) makes early settlement or termination upon an event of default iv) Cancellation of Facility pursuant to expiry of Availability Period For avoidance of doubt, it is hereby acknowledged and agreed that the rebates referred to herein shall not be construed in any manner whatsoever as cash rebate payable to the Customer(s), but shall be reflected as a reduction in the profit element of the monthly payment of the Facility. Note: i) Payment may fluctuate based on the movement of BFR. ii) The fluctuations of BFR are as follows:- a) If BFR is at moving downtrend, the monthly payment will decrease. b) If BFR as at moving uptrend, the monthly payment will increase. iii) The customer will be advised of the new payment upon the changes in BFR via notification letter. 5. What are the fees and charges I have to pay? a) Stamp Duties As per the Stamp Act 1949 (Revised 1989): i) Letter of Offer : ii) Principal Document * : 5.00 for every/setiap 1,000 iii) Security Document : iv) Standing Instruction : *20% stamp duty remission for Principal Document based on Shariah principles. b) Legal & Disbursement Fees Include solicitors fees for financing documentation, registration of charge, land search and bankruptcy search c) Processing Fees/Set Up Fees Set Up Fee : (shall be debited upon first disbursement) 3

4 Seek clarification from if d) Monthly Service Charge will be charged upon 1 st disbursement of the financing and until full settlement of the facility. e) Transaction or Brokerage Fee Not applicable 6. What if I fail to fulfill my obligations? a) During Tenure: (i) For default in payment during the Tenure, the compensation rate that shall be applied is one per centum (1%) per annum or any other rates approved by Bank Negara Malaysia ("BNM") on the overdue of the monthly payments from the due date(s) for the payment of such monthly payment(s) until the date when payment is received by the Bank. (ii) For default in payment during the Tenure, where such default causes the entire Facility to be terminated or brought to court for judgment prior to Maturity, the ta widh (compensation) rate that shall be applied is up to one per centum (1%) per annum or any other rates approved by BNM on the outstanding principal balance, from the date the entire Facility is terminated until the date the outstanding principal balance is received by the Bank or the judgment is obtained, whichever is earlier; and b) After Tenure: If the Facility remains unpaid after the Tenure, the Ta widh (compensation) rate shall be applied shall not be more than the BNM s prevailing daily overnight Islamic Interbank Money Market (IIMM) Rate or any other rates approved by BNM on the outstanding principal balance until the date the outstanding principal balance is received by the Bank. The ta widh (compensation) amount shall not be compounded on principal amount and/or outstanding principal balance. The accumulated ta widh (compensation) shall not exceed one hundred percent (100%) of the outstanding principal balance, as the case may be. c) Notwithstanding the above, you hereby agree, covenant and undertake to the Bank, where applicable, gharamah (penalty) over and above the ta widh (compensation) which shall be channeled to charitable organization approved by the Shariah Committee of the Bank. The aggregate of the ta widh (compensation) and gharamah (penalty) shall not be compounded on the overdue of the monthly payments and or the outstanding principal balance, as the case may be. Note: 4

5 Seek clarification from if *Legal action will be taken if you fail to respond to reminder notices. Review: The Bank retains the absolute right to review and terminate the Facility granted to you in the event there is any indication the Facility is being used for non-shariah compliant activities or upon occurrence of any other event of defaults as agreed in the Murabahah Facility Agreement. Right to set-off: We have the right to set-off any credit balance in your account maintained with us against any outstanding balance in this financing account. Foreclosure: Your property may be foreclosed and you will have to bear all cost. The Bank has the right to commence recovery activities (including engaging third party debt collecting agencies), foreclosure and bankruptcy proceedings. You are also responsible to settle any shortfall after your property is sold. Bankruptcy: You may be subject to bankruptcy proceedings if the outstanding amount reaches a certain limit. Repercussions of being adjudged a bankrupt will result in freezing and confiscation of your assets. *Legal action against you may affect your credit rating leading to credit being more difficult or expensive to you 7. What if I fully settle the financing before its maturity? a) You will need to pay the outstanding balance, current monthly profit and any amount due and payable to the Bank. b) You may be subject to Early Settlement Charges. 8. Do I need any takaful coverage? a) Group Mortgage Takaful Plan (GMTP) is optional. However, you are encouraged to take up the plan as it gives you peace of mind and protects your family during unforeseen circumstances. b) Takaful Certificates required by the Bank to cover the Property against the risk of the fire and other risk as the Bank deems fit is compulsory. 9. Do I need to provide guarantor? On case to case basis depending on your credit assessment by the Bank, you may be required to provide a guarantor. 10. Can I suggest a lawyer to the Bank who is not listed on the Bank s panel lawyer? Yes. However, it is not recommended as the lawyer may not be well versed with the Bank s documentation requirements and hence may result in delays. 5

6 Seek clarification from if 11. What are the major risks? Fixed / Variable Rate or Combination: This product is offered to customers with a fixed or variable or combination of both rates. The monthly payment amount is also fixed throughout the tenor for fixed rate and varies for variable rates. In circumstances where the market rates are lower or higher than the agreed fixed or variable rates, customers are bound to pay a higher monthly payment amount comparatively. The monthly payment amount paid may be higher than the previously agreed. Furthermore, the customers do not have an option to convert the rates to the market rates whenever they want as the agreement has been made as a fixed or variable rate throughout the tenor. Exceeding Retirement Age: For financing tenor extends into retirement age, customer is obliged to meet the financing payments during his /her retirement age by considering avenues of payment from the funds in EPF, pensions provision or annuity payment. 12. What do I need to do if there are changes to my contact details? It is important that you inform us of any changes in your contact details to ensure that all correspondences reach you in a timely manner. To update your contact details, you may inform us in writing or reach us via one of the following channels [ ]. 13. Where can I get assistance and redress? If you have difficulties in making payments, you should contact us earliest possible to discuss payment alternatives. You may contact us at: Customer Resolution Unit 19th Floor, Menara Bumiputra Commerce 11, Jalan Raja Laut Kuala Lumpur Tel No: Fax No: CRU@cimb.com Alternatively, you may seek the services of Agensi Kaunseling dan Pengurusan Kredit (AKPK), an agency established by Bank Negara Malaysia to provide free services on money management, credit counseling and debt restructuring for individuals. You can contact AKPK at: Tingkat 8, Maju Junction Mall 1001, Jalan Sultan Ismail Kuala Lumpur 6

7 Seek clarification from if Tel No: You may also register for BNM s free Pengurusan Wang Ringgit Anda (POWER!) Programme, specially designed to equip you with essential financial knowledge and skills in money and personal debt management. You may get more information about the Programme from leaflets (available at our branches) or from AKPK s website. If you wish to complain on the products or services provided by us, you may contact us at: Customer Resolution Unit 19th Floor, Menara Bumiputra Commerce 11, Jalan Raja Laut Kuala Lumpur Tel No: Fax No: CRU@cimb.com If your query or complaint is not satisfactorily resolved by us, you may contact Bank Negara Malaysia LINK or TELELINK at: Block D, Bank Negara Malaysia Jalan Dato Onn Kuala Lumpur Tel No: Fax No: bnmtelelink@bnm.gov.my 14. Where can I get further information? Should you require additional information on Islamic Property Financing, please refer to the product leaflet that is available at CIMB Islamic Bank, co-located at all CIMB Bank branches nationwide. Or kindly call us at or visit our website at Other relevant information The financing amount and tenure approved by the Bank may be lower than the applied amount, in accordance with the Bank s policies and discretion; and shall depend on the Bank s due credit process and/or the credit profile or creditworthiness of the Customer. As required by law, the Bank will share your credit data with the relevant credit bureau or other regulators. 7

8 Seek clarification from if 16. Other financing packages available a) Fixed Home Financing i b) Home Financing-i c) Variable Home Financing-i d) Term Financing-i IMPORTANT NOTE: YOUR HOUSE MAY BE FORECLOSED IF YOU DO NOT KEEP PAYING MONTHLY PAYMENTS ON YOUR HOUSE FINANCING The information provided in this disclosure sheet is valid as at : [ ] 8