BNM Target Lending To Priority Sector Housing Loan

BNM Target Lending To Priority Sector Housing Loan

The purpose of this housing loan facility is to finance residential property with purchase price not more than RM250,000 (Peninsular Malaysia) and RM300,000 (Sabah and Sarawak) for all Branches nationwide as to comply with BNM Target Lending To Priority Sector. Eligible properties shall be restricted to residential properties that are low cost housing for the lower and middle income group, which are completed and under construction. Refinancing and residential land financing are prohibited.

Terms and Conditions

A) Qualifying Criteria :

  1. Eligible individual of minimum age 18 years.
  2. Applicable to both applicants who earn fixed monthly salary and self employed individuals.
  3. The applicant is a house buyer purchasing or constructing his house and the house must be owner-occupied. However, where the applicant is unable to occupy the house because of job requirements, the house may be considered as owner-occupied if it is occupied by his immediate family member/s, that is parents, spouse, children and siblings.
  4. An application for a loan/financing to purchase or construct a second house which is already disposed of qualifies on condition that the applicant must satisfy the banking institution that he has only one house at any point of time and the house would be owner-occupied.
  5. A married couple shall be entitled to only one housing loan/financing at the prescribed rate.

B) Loan Structure :

  • Property value :

    • Peninsular Malaysia : RM35,000 to RM250,000
    • Sabah & Sarawak : RM35,000 to RM300,000

  • Margin of finance :

    • Up to 90% plus 5% mortgage reducing term assurance (MRTA) or mortgage reducing term takaful (MRTT) and legal fees.

  • Tenure : Maximum 35 years or up to age 65, whichever is earlier.
  • Retention :
    • Applicable to settlements within 5 years from date of full disbursement
    • Penalty amount :

      • 5% of original loan amount if redeemed within retention period

  • MRTA / MRTT - Compulsary

For more information, call our Contact Centre at 03-8230 2222 or visit the nearest AFFINBANK / AFFIN ISLAMIC branch today.

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