Home Financing

A Home Takaful can help you as a borrower and also the lenders’ investments recover the costs of losses incurred in case of any unexpected events. Among the required Takaful are:

1. Mortgage Reducing Term Takaful (MRTT) or Mortgage Level Term Takaful (MLTT). MRTT or MLTT will help you resolve your outstanding home financing amount in the event of Death or Total and Permanent Disability (TPD).
2. HouseOwner and HouseHolder Takaful. In the event of damage or break-ins to your home, this Takaful will help you alleviate the cost of replacement and repairs.
3. Fire Takaful. Fire Takaful covers losses or damages to your property caused by fire, lightning, and explosion of gas used for domestic purposes.

A redraw facility gives you the access to withdraw the extra repayments you have made over the required minimum repayments on your home financing. When you have available redraw (the amount by which you are ahead of your scheduled repayments), you can withdraw it in lump sum, choose to make reduced repayments, or make the same scheduled repayments to pay off the loan faster.

A ceiling rate is the maximum rate that a lender can charge a borrower when negotiating a financing.

A lock in period is a period where you will have to pay a penalty, if you somehow wish to end your home loan earlier than agreed or pay off your home loan in full (by full settlement, refinancing or sale).

Banks usually offer home financing tenure of up to 35 years or until 70 years of age of a person. However, you can get terms for longer or shorter periods depending on the bank’s approval and agreement.

The bank will determine your borrowing amount depending on your ability to repay, and depends on your income and other financial commitments.