Kuwait Finance House Home Loan

About Kuwait Finance House (KFH)

Kuwait Finance House (Malaysia) Berhad is the first foreign Islamic bank to be licensed under Malaysia’s Islamic Banking Act in 1983. Aside from that. Kuwait Finance House (KFH) offers innovative Shariah-based financial solutions to their customers, ranging from personal banking to corporate banking, including wealth and management, investment, financing, treasury services, etc. Today, Kuwait Finance House Group’s banking network spans 7 regions worldwide, with 430 branches and over 790 ATMs. Their headquarters in Malaysia were located on Ground Floor, Menara Prestige, No 1, Jalan Pinang, 50450 Kuala Lumpur.

What is a home loan?

A home loan is one of the most common ways to purchase a home. A loan from your local bank can help you fund this dream, but interest rates and repayment periods always need your consideration before applying for it! Find out what those will be like by researching different banks in town.

What type of home loan does KFH offer?

KFH provides 2 types of home loans:

• Ijarah Muntahiah Bi Tamlik Asset Acquisition Financing-i (property completed
• landed or non-landed residential properties)
• Ijarah Mausufah Fi Zimmah Asset Acquisition Financing-i (property under construction only)

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 KFH home loans?

• Individuals, joint applicants, sole proprietorship, partnership, and limited company
• Tenure duration:
  • Residential property: Up to 35 years or age 70 (whichever is earlier)
  • Commercial property: Up to 15 years or age 60 (whichever is earlier)

Why should I choose KFH home loans?

• Enjoy a financing tenure period of up to 35 years or age 70, whichever is earlier*
• KFH home loan uses a fully Shariah-compliant product based on Ijarah
• Enjoy the Zero Entry Cost (ZEC), Non-Zero Entry Cost (NZEC), and Finance Entry Cost (FEC)
• Enjoy a margin of financing that is up to 90% + 5%*
• Stamp duty is reduced by 20% for new financing

*Depending on the selected home loan.

Who should I contact for further information about KFH home loans?

For more information or assistance with KFH home loans, contact KFH Contact Centre at 1-300-88-8534 or visit the nearest KFH branch.

What are the documents required for KFH home loans?

• Salaried employee
  • Copy of NRIC
  • Latest salary slip
  • Latest bank statement where salary is credited
  • EPF statement
  • EA Form

• Self-employed
  • Certificate of Business Registration
  • B or BE Form
  • Personal bank statement
  • Business bank statement

• Variable income earner
  • Commission statement
  • Annual commission statement
  • Personal bank statement
  • BE Form

Other documents may be required on a case-by-case basis.

What are the fees included in KFH home loans?

• Stamp duty: As per Stamp Duty Act 1949 (Revised 1989)
• Late payment fee: 1% of the amount in arrears
• Processing fee:
  • Home Financing-i: RM200 (included as part of the initial lease rental)
  • Property Financing-i:
    • RM500 per property below RM5 million
    • RM1,000 per property RM5 million – RM10 million
    • RM 2,000 per property more than RM10 million
• Letter for EPF withdrawal fee: RM20 per request
• Redemption statement: RM50
• Security documents retrieval: RM10 per document

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.