AIA Home Loan

About AIA

AIA is a multinational insurance and finance corporation headquartered in Hong Kong and founded by Americans. AIA Bhd is a leading insurer in Malaysia, where this bank has had the privilege of doing business since 1948. Besides that, AIA also provides various financial solution products such as protection, health, personal accident, employee benefits, general insurance, family takaful, and others to daily meet its customers’ protection and financial security needs.

What is a home loan?

Home loans are the most important financial transaction you will make in your life, so it is imperative to find one that suits all of our needs. In simple words, a home loan is a service by banks or other financial institutions that provide funds for buying properties.

What type of home loan does AIA offer?

AIA provides 1 type of home loan, AIA Fixed Rate Mortgage.

What should I know before applying for a home loan?

• Interest rates

  You must be aware of the interest rates that the bank will charge you, either fixed interest rates or variable rates.

• Type of loan

  In Malaysia, there are 3 types of loans offered: term loan, semi loan, or flexi loan.

• Lock-in period

  Knowing the lock-in period is crucial because it often occurs when there is a sudden need for full settlement, refinancing, or selling your property.

• Margin of finance

  You must understand your margin of finance, which is the amount of money that a bank will allow you to borrow for your loan and how much cash/ upfront you must pay for the property.

• Fees

  The fees include legal fees, stamp duty charges, late payment fees, early settlement fees, and others.

• Type of bank

  The bank you have chosen to apply for a home loan with, as different banks offer different loan amounts, terms, etc. Choose a bank where you are comfortable applying for a home loan.

Who is eligible to apply for AIA Fixed Rate Mortgage?

• Malaysian citizen
• Between 18 to 70 years old
• For self-employed applicants: The company has been in operation for at least 3 years and has been profitable during that time
• For Permanent Residents or foreigners:
  • Only limited to financing the purchase of properties
  • Must have lived and worked in Malaysia for at least 3 years and have a valid work permit
  • If married to a Malaysian spouse, the spouse is required to be the joint applicant

Why should I choose AIA Fixed Rate Mortgage?

• Enjoy a financing tenure period up to 35 years or age 70, whichever is earlier
• Enjoy fixed interest rates throughout the duration of the loan
• Enjoy zero moving costs for a free valuation, legal fees, and stamp duty
• Get the optional life/ MRTA insurance coverage

Who should I contact for further information about AIA Fixed Rate Mortgage?

For more information or assistance with AIA Fixed Rate Mortgage, You can either:

• Contact the Customer Care Line at 1-300-88-1899
• Email my.loan@aia.com
• Visit the nearest AIA branch

What are the documents required for AIA Fixed Rate Mortgage?

• Salaried employee
  • Copy of your NRIC
  • Latest 3-month salary slip
  • Letter of Employment
  • Sales and Purchase Agreement/ Booking receipt from the developer
  • Valuation report

• Self-employed
  • Copy of your NRIC
  • Latest 3-month salary slip
  • Latest 6-month bank statement
  • Form 24 and 49
  • Sales and Purchase Agreement/ Booking receipt from the developer
  • Valuation report
  • Copy of the Title Deed

What are the fees included in AIA Fixed Rate Mortgage?

• Stamp duty

  As per Stamp Duty Act 1949 (Revised 1989)

• Late payment fee

  1% of the amount arrears

• Early settlement fee

  0.62% p.a. plus an administrative fee of 0.40% of the total prepaid amount

• Processing fee

  None

• Redemption letter fee

  RM50 per request

• Letter for EPF withdrawal fee

  RM20 per request

What are the common terms of home loan?

• Lock-in period

  A period during which you will be penalised if you pay off your home loan earlier than agreed. The fine ranges from 2% to 5% of the total amount.

• Margin of Finance (MOF)

  The amount of money that a bank will lend you for your loan determines how much cash you must pay upfront for the property.

• Interest rates

  It is the amount of money you paid to the bank in addition to the principal amount.

• Valuation

  An estimate of the property’s worth and the stamp duty is calculated based on its value.

• Base rate

  The base rate is the interest rate charged by Bank Negara Malaysia to commercial banks for loans.

• Base Lending Rates (BLR)

  A rate set by each bank based on the cost of borrowing the money to be lent to borrowers.

• Refinancing

  Repaying an existing loan and replacing it with a new one with new terms and conditions.