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.
