PRODUCT DISCLOSURE SHEET (Read this Product Disclosure Sheet before you decide to take the Affin Tawarruq Home Refinancing-i / Affin Tawarruq BP Refinancing-i. Be sure to also read the terms in the letter of offer. Seek clarification from the Bank if you do not understand any part of this document or the general terms) ENGLISH VERSION Bank : Affin Islamic Bank Berhad Product : 1. Affin Tawarruq Home Refinancing-i 2. Affin Tawarruq BP Refinancing-i Date of Issuance to Customer : 1. What is this product about? Refinancing with Additional Excess Limit for Personal Consumption for the purpose of refinancing of properties i.e residential and business premises from other Financial Institution with additional excess limit to be used for personal consumption which will be applied together in a single application. 2. What is the Shariah concept applicable? The Shariah concept applicable is Musharakah Mutanaqisah (MM) or Diminishing Musharakah and Tawarruq Refinancing of Property under Musharakah Mutanaqisah (MM) or Diminishing Musharakah The Bank and you shall jointly own the shares, rights and benefits in the Property/Land where you shall contribute a sum equivalent to the initial acquisition payment ( Bank s Initial Acquisition Payment ) towards part purchase of your ownership in the Property/Land and the balance of ownership which is owned by you shall be regarded as your initial acquisition payment ( Customer s Initial Acquisition Payment ) towards the ownership of the Property/Land. Where there is the legal and / or beneficial owner of the property, the Bank shall purchase rights, interests and benefits in the property from the customer for the consideration of up to the Bank s Initial Acquisition Payment. Customer shall gradually acquire the Bank s Ownership, rights and benefits in the Property by making monthly payments ( Monthly Payments ) to the bank, which partially contributes towards increasing customer s share in the property and decreasing the bank s share on the property in accordance with the terms of the Facility ( Acquisition Payments ) until customer shall wholly and fully own the property. As a result of the Acquisition Payments made under the Facility, customer s ownership, rights and benefit in the Property will increase and the Bank s ownership will decrease proportionately. At the end of the Ijarah term and upon full payment, customer will acquire all the Bank s Ownership, rights and benefits in the Property. Personal Consumption under Tawarruq Tawarruq is a series of sale contracts where the buyer buys an asset from a seller for a deferred payment and subsequently sells the asset to a third party for cash at a price less than the deferred price, with the objective of obtaining cash. Customer enters into arrangement with the Bank for Additional Excess Limit for Personal Consumption facility and pursuant to creation of facility limit, the Bank will buy specified commodity from commodity Broker A / Supplier A at Bank s Purchase Price. Bank then sells the specified commodity to the Customer at Bank s Sale Price to be paid on deferred payment terms as agreed. The Customer will appoint the Bank as agent to sell commodity to commodity Broker B / Supplier B at a price equivalent to the Bank s Purchase Price. The proceeds will be used for acquisition of the property.
3. What is the Base Rate (BR)? The new Reference Rate Framework introduced by Bank Negara Malaysia aims to provide a more transparent reference rate to enable better decision by consumers in making choices among the many loan/financing products offered by financial institutions. Under this framework, the Base Rate (BR) will replace the Base Lending Rate (BLR) and Base Financing Rate (BFR) as the main reference rate for new retail floating rate loan/financing effective 2 January 2015. The Bank s BR is computed based on its benchmark cost of funds and the Statutory Reserve Requirement (SRR) cost, and is applicable for both conventional loan and Shariahcompliant financing. 4. What are possible scenarios to trigger a change in the BR? The BR can rise or fall due to changes in monetary policy such as the Overnight Policy Rate (OPR) as decided by the Monetary Policy Committee of Bank Negara Malaysia, as well as other factors such as changes in funding conditions. 5. Historical benchmark Cost of Fund (COF) for the past three years: 6. What do I get from this product? A rental / profit charge is based on Daily Rest for House Financing and Monthly Rest for Additional Excess Limit for Personal Consumption. Redraw facility for own consumption only applicable for House Financing. Ceiling rate feature for all customers suit everyone who wants to be protected against uncertainty in Ijarah / profit rate movement.
7. What are the product features of this product? The product features of this product are as follows : Eligibility Ceiling Rate Bank s Commitment Amount (Margin of Financing (MOF) Individuals aged 18 and above It refers to the maximum Ijarah / profit rate chargeable to the Customer throughout the financing tenure. Any increase in the Base Rate (BR); the Ijarah / profit rate will halt at the specified maximum ceiling rate stated during the signing of agreement. 1. To be calculated as a combination of two facilities against current market value specified in one single application. 2. The MOF should not be more than the maximum MOF allowed under the existing product i.e: Product MOF Affin Home Invest-i 90% + 5% (MRTT) Affin Business Premise Invest-i 85% + 5% (MRTT) Example. Refinancing from Bank A (housing financing) Current Market value = RM500,000 Margin of Finance (MOF) = 90% + MRTT Outstanding amount at Bank A = RM180,000 Personal Consumption (Minimum Financing Amount = RM50,000) = RM270,000 MRTT = RM25,000 Total refinancing amount = RM475,000 Single application applied in Loan Origination System (LOS): (i) House Financing : MMHOME800 + MRTT = RM180,000 + RM25,000 = RM205,000 Tenure : Maximum 35 years (ii) Personal Consumption : TWQREFRES RM270,000 RM270,000 Tenure : Maximum 35 years (in computing the DSR the payment period shall not exceed 10 years)
Tenure 1. House Financing Shall follow the existing product features Main Facility Affin Home Invest-i Affin Business Premise Invest-i 2. Personal Consumption Additional Excess Limit for personal consumption TWQREFRES TWQREFBP Tenure 35 years or up to 70 years old whichever is earlier 35 years or up to 70 years old whichever is earlier Financing tenure for Cash Out for personal consumption is to be based on the tenure of the property financing. (However in computing the DSR the payment period shall not exceed 10 years) Redraw 1. At anytime upon full disbursement during the Ijarah Tenure, the Customer may offer to sell and transfer any part of the Customer s share of ownership in the Property to the Bank for the purpose of redraw of the Facility. Any subsequent sale or transfer of the Customer s ownership in the Property during the Co- Ownership Period to the Bank shall be effected in the manner as the Bank shall deems fit. Redraw can be under Prepayment and/or Advance Payment. 2. Redraw under Prepayment a) In the event you have made a lump sum equity partial prepayment (reduction in principal) other than the Installment Payment amount to the Facility, you may request for redraw subject to Bank s approval and Terms and Conditions at its absolute discretion. b) The redraw is subject to further credit checking by the Bank. c) The said redraw amount is subject to annual straight line limit reduction. d) Application for redraw must be made at branch by completing the Redraw Application Form. 3. Redraw under Advance Payment a) In the event that you have made payment of the Facility in an amount which is in excess of your Installment Payment amount, you may make request at branch, subject to the Bank s approval and Terms and Conditions at its absolute discretion, to withdraw the amount which is in excess of your monthly installment. b) The minimum advance amount in your financing account must be RM5,000.00 (Ringgit Malaysia Five Thousand) with minimum balance available for next payment due after redraw to qualify for redraw of advance payment application.
4. Redraw under prepayment and advance payment is only available upon full disbursement of the facility. 5. The approved redraw amount shall be credited to your Current or Saving account maintain with the Bank. 6. In the case of joint customers, any application for redraw must be submitted by the joint customers and if successful amount shall be credited to the Current or Saving account of the joint customers. 7. The amount to be redrawn must be for a minimum of RM3,000.00 (Ringgit Malaysia Three Thousand) and thereafter multiple of RM1,000.00 (Ringgit Malaysia One Thousand) only. 8. A processing fee of RM25.00 (Ringgit Malaysia Twenty Five Only) inclusive of 0% Goods and Services Tax (GST) shall be charged for each successful application for redraw. The fees shall be debited from your Current or Saving account where the redraw amount is credited. 9. Any monies withdrawn from the Employee Provident Fund shall be deemed as prepayment and shall not be available for redraw 8. What are my obligations? Example: (i) House financing Total amount financed : RM190,000 Margin of finance : 90% + 5% Tenure : 35 years Rental Rate : BR+1.56% (ERR = 5.66% p.a.) 1 st 6 months monthly instalment : RM1,040.33 (review every 6 months) The total amount you must pay is RM436,938.60* (ii) Personal Consumption Total amount financed : RM270,000 Tenure : 35 years Rental Rate : BR+1.56% (ERR = 5.66% p.a.) Monthly installment : RM1,478.36 The total amount you must pay is RM620,911.20*
Important: Your monthly instalment and total payment amount will vary if BR change. (i) House Financing Rate BR= 4.10% If BR goes up 1% If BR goes up 2% Monthly instalment (RM) 1,040.33 1,169.00 1,303.00 Total profit cost at the end of 35 years (RM) Total payment amount at the end of 35 years (RM) 246,938.60 300,980.00 357,260.00 436,938.60 490,980.00 547,260.00 (ii) Personal Consumption Rate BR= 4.10% If BR goes up 1% If BR goes up 2% Monthly instalment (RM) 1,478.36 1,661.00 1,851.00 Total profit cost at the end of 35 years (RM) Total payment amount at the end of 35 years (RM) 350,911.20 427,620.00 507,420.00 620,911.20 697,620.00 777,420.00 All calculations and information above are for illustration purposes only. *Note: Total payment amount may vary subject to Base Rate (BR) changes. Effective 30 January 2018, the revised BR is 4.10% p.a. 9. What are the fees and charges I have to pay? Type of Fee / Charge Details of Fee / Charge Stamp Duty As per Stamp Act 1949 (Revised 1989) Disbursement Fees Legal fees pertaining to financing documentations Include fees for registration of charge, land search and bankruptcy search. The customer is required to pay all legal fees and incidental expenses in connection with the facility (including but not limited to the preparation, stamping and registration of any security documents and the lodgement and withdrawal of caveats). Security documentation for the financing is to be handled by solicitor under the Bank s panel. Should a non-panel solicitor is appointed by the Customer, guidelines on application of a non-panel solicitor by the Bank must be complied and approval is strictly at Bank s discretion. However, to avoid any delay in the documentation or process, the appointment of the Bank s panel lawyers is highly encouraged.
Type of Fee / Charge Valuation Fees Processing Fees Redemption statement (per account per request) Redraw fees / charges for excess payment (per transaction) Additional financing statement (per request) Letter of confirmation for EPF withdrawal Details of Fee / Charge For completed properties only No Charges RM50.00 RM25.00 RM10.00 RM20.00 Note: i. As a GST registered company, AFFIN ISLAMIC will be charging GST at 0% for all taxable supplies made to you on 1 June 2018 onwards. ii. We will communicate to you at least 21 calendar days prior to the effective date of implementation if there are any changes in fees and charges that applicable to your financing facility. iii. As per all other terms and conditions in the Letter of Offer. 10. What if I fail to fulfill my obligations? If you have problem meeting your financing obligation, contact us early to discuss payment alternatives. Delay on your part could lead to the following consequences : 1. In the event your facility is in default for three (3) months on: Ijarah Rate (i) (ii) Payment of advance rental pending the commencement of monthly installment: or Payment of the monthly installments and/or Profit Rate (i) (ii) Payment of profit portion of the Bank s Sale Price pending the commencement of monthly installment: or Payment of the monthly installments of the Bank s Sale Price the Bank shall revise the Ijarah and/or Effective Profit Rate in your letter of offer to BR + 4.35% p.a calculated on the outstanding principal, or such other rate or basis of calculation of the rate as the Bank may determine at its sole and absolute discretion. When the Facility is classified as a Non-Performing Financing, the Bank shall revise the Ijarah and/or Effective Profit Rate in your letter of offer to BR + 6.35% p.a or such other rate or basis of calculation of the rate as the Bank may determine at its sole and absolute discretion.
2. Prior to the revision of the rate, the Bank shall provide a written advance notice of not less than 21 days. 3. If you have regularized your account and after due assessment of the Bank, the Bank shall reinstate the Ijarah/Effective Profit Rate as per the Letter of Offer regardless whether you submit application for the reinstatement or not. If your Ijarah/Effective Profit rate has been reinstated, but subsequently revised again due to paragraph 1 above, the Bank shall reinstate the rate after regularization of account as per the Letter of Offer, upon application for reinstatement by you and due assessment by the Bank. 4. The above revised Ijarah and/or effective profit rate is subject to not exceeding the Ceiling Ijarah/Profit Rate. Compensation Charges (Ta widh) Customer will be imposed with compensation charges of 1% per annum on the overdue installment or any other method approved by Bank Negara Malaysia. As per all other terms and conditions in the Letter of Offer. 11. Do I need any Takaful coverage? Mortgage Reducing Term Takaful (MRTT) is optional but highly encouraged. In the event of death and total permanent disability, the Takaful will pay off all outstanding amount of your financing with the Bank. This will alleviate the burden of payment on your survivors or next of kin. 12. What are the major risks? The Ijarah / profit rate on this financing is floating and it is pegged to Base Rate (BR). Ijarah / profit rate may change according to changes in the reference rates. An increase in Ijarah / profit rate may result in higher monthly payment. 13. What do I need to do if there are changes to my contact details? It is important that you inform us of any change in your contact details to ensure that all correspondences reach you in a timely manner. In accordance of Affin Islamic Bank s policy/guidelines and per standard security documents, any change of contact details has to be in writing duly signed off by the customer(s) and addressed to Affin Islamic Bank Berhad 14. Where can I get assistance and redress? If you have difficulties in making payments, you should contact us earliest possible to discuss payment alternatives. If you wish to complaint on the products or services provided by us, you may contact us at: AFFIN ISLAMIC BANK BERHAD 12 th, Floor, Menara Affin 80, Jalan Raja Chulan 50200 Kuala Lumpur Tel : 03-20559000 Fax : 03-20261104 Email :yourvoice@affinbank.com.my
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, financial education and debt restructuring for individuals. You can contact AKPK at: Tingkat 8, Maju Junction Mall 1001, Jalan Sultan Ismail, 50250 Kuala Lumpur. Tel : 03-26167766 Email : enquiry@akpk.org.my 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, 50480 Kuala Lumpur. Tel : 1-300-88-5465 Fax : 03-21741515 Email : bnmtelelink@bnm.gov.my 15. Where can I get further information? Please visit the nearest AFFIN ISLAMIC / AFFINBANK branch or call our Contact Centre 03-8230 2222 or visit our website www.affinislamic.com.my / www.affinonline.com for further details. 16. Other property financing packages available Affin Home Assist Plus-i Affin Home Invest Plus-i Affin Premier Corporate Home Financing-i Affin BNM Priority Sector Financing-i Affin Home Build-i Affin Tawarruq Term Financing-i Affin Home Credit Plus-i (Remortgage) Affin Home Extra Plus-i (Enhancement) Affin Tawarruq Cash Line-i IMPORTANT NOTE: YOUR PROPERTY MAY BE FORECLOSED IF YOU DO NOT KEEP UP PAYMENTS ON YOUR FINANCING. The information provided in this disclosure sheet is valid as at 16 November 2018