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.
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.
AIA provides 1 type of home loan, AIA Fixed Rate Mortgage.
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.
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.
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.
For more information or assistance with AIA Fixed Rate Mortgage, You can either:
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
Redemption letter fee
RM50 per request
Letter for EPF withdrawal fee
RM20 per request
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.
It is the amount of money you paid to the bank in addition to the principal amount.
An estimate of the property’s worth and the stamp duty is calculated based on its value.
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.
Repaying an existing loan and replacing it with a new one with new terms and conditions.