PRODUCT DISCLOSURE SHEET

(Please read and understand this Product Disclosure

Sheet before you decide to take the AFFIN Home Invest-
i (“Facility”). Be sure to also read and understand the ENGLISH VERSION
terms stated herein together with the letter of offer, Bank : Affin Islamic Bank Berhad
the Standard Terms and Conditions and any other
Product : AFFIN Home Invest-i
agreements in relation to the Facility. You are hereby
reminded to always seek and obtain your own Date of Issuance to Customer :
independent legal advice. Kindly seek clarification from
the Bank if you do not understand the general terms or
any part of this document)

1. What is this product about?

 AFFIN Home Invest-i is a new financing product based on Musharakah Mutanaqisah (MM) or
Diminishing Musharakah.
 Purpose:
For
i. Acquisition of Residential Property (Under construction and Completed)
ii. Refinancing (Completed Only)
iii. Subsale
 Property Value : Minimum RM200,000-00

2. What is the Shariah concept applicable?

The Shariah concept applicable is Musharakah Mutanaqisah (MM) or Diminishing Musharakah.

 Under the Shariah principle of Musharakah Mutanaqisah, the Bank and Customer shall jointly purchase
the rights, interests and benefits in an identified property (“Property”) whereby the Customer shall
contribute a sum equivalent to the initial acquisition payment (“Customer’s Initial Acquisition Payment”)
and the Bank shall contribute towards the purchase of the Property a sum equivalent to the Bank’s
commitment amount (“Bank’s Initial Acquisition Payment”).
 The Bank then leases its share in the Property to the Customer on the basis of Ijarah Mawsufah Fi Zimmah
(Forward Leasing) during construction of the Property and Ijarah (Lease) upon completion of the Property.
 The Customer shall gradually acquire the Bank’s Ownership, rights and benefits in the Property by making
monthly payments (“Monthly Payments”) to the Bank, which partially contributes towards increasing the
Customer’s share in the Property and decreasing the Bank’s share in the Property in accordance with the
terms of the Facility (“Acquisition Payment”) until the Customer shall wholly and fully own the Property.
 As a result of the Acquisition Payments made under the Facility, the Customer’s ownership, rights and
benefit in the Property will increase and the Bank’s ownership, rights and benefits will decrease
proportionately.
 At the end of the ijarah term and upon full payment, the Customer will acquire all the Bank’s Ownership,
rights and benefits in the Property.
 For property under construction, if the Property cannot be occupied due to the abandonment of the
construction of the Property which cannot be revived, the advance rental as duly paid by the Customer,
will be refunded to the Customer in the manner as determined by the Bank.

3. What is the Base Rate (BR)?

The Base Rate (BR) we offer for the retail floating rate financing is made up of two parts, our benchmark Cost
of Funds (COF) and the Statutory Reserve Requirement (SRR) cost imposed by Bank Negara Malaysia.

Copyright 2019 Affin Islamic Bank Berhad (709506-V)

 Our benchmark COF reflects the cost of raising new funds and is based on the combination of 3-month Kuala
Lumpur Interbank Offer Rate (KLIBOR) and Affin Islamic Term Deposit-i (AITD-i).

4. What are possible scenarios to trigger a change in the BR?

The BR can rise or fall due to changes in monetary policy of Bank Negara Malaysia such as the Overnight Policy
Rate (OPR) as decided by the Monetary Policy Committee of Bank Negara Malaysia, as well as other factors
such as changes in funding conditions.

5. Historical benchmark Cost of Fund (COF) for the past three years:

Please refer to www.affinislamic.com.my for the latest historical data.

(Go to Quick Link > Rates > Benchmark Cost of Funds Used to Determine The Base Rate)

6. What do I get from this product?

Total financing amount : RM350,000.00

Margin of finance : 90%
Tenure : 30 years
Ijarah Rate : BR+0.66% per annum (p.a.) (ERR = 4.61% p.a.)
First 6 months monthly installment : RM1,796.35 (review every 6 months)
The total amount you must pay is RM646,686.00*
*Note: Total payment amount may vary subject to BR changes. Effective 10 May 2019, the revised BR is 3.95%
p.a.

7. What are the product features of this product?

The product features of this product are as follows :

Eligibility Individuals aged 18 years and above

Ceiling Rate It refers to the maximum Ijarah Rate chargeable to the Customer throughout the
financing tenure. Despite any increase in the BR; the Ijarah Rate will halt at the
specified maximum ceiling rate stated during the signing of the facility agreement
(“Ceiling Ijarah Rate”).
Maximum Ijarah Rate : 10.00% p.a.
Bank’s
Commitment  Maximum margin of financing is 90%. The Customer’s contribution to the
Amount partnership is 10% while the Bank is 90%.

(Margin of  Actual Margin of Finance will be determined by the credit approving officer based
Financing (MOF) on the type of property, location, and payment capacity of the applicant.

Tenure The number of years or months that the financing is offered.

Maximum Tenure : 35 years or age of 70 years old (whichever is earlier)
 Attractive rate as low as BR+0.66% p.a. (Terms and Conditions apply)
Ijarah Rate
(Daily Rest)  Any special promotion and packages of this product will be communicated to the
Customer by the Bank via various channels of communications.

Copyright 2019 Affin Islamic Bank Berhad (709506-V)

Lock-in Period Not applicable. No lock-in period for this product.

1. At anytime upon full disbursement during the Ijarah tenure, the Customer may
offer to sell and transfer any part of the Customer’s share of ownership in the
Property to the Bank for the purpose of redrawing of the Facility. Any subsequent
sale or transfer of the Customer’s ownership, rights and benefits in the Property
during the co-ownership period to the Bank shall be effected in the manner as the
Bank shall deems fit.
Redrawing of the Facility can be under prepayment and/or advance payment.

2. Redraw under Prepayment

a) In the event you have made a lump sum equity partial prepayment
(reduction in principal) other than the Monthly Payment, you may request
for redraw subject to the Bank’s approval and Terms and Conditions.
b) The redraw is subject to further credit checking by the Bank.
c) The said redraw amount is subject to annual straight line limit reduction.
d) Application for redraw must be made at a branch by completing the Redraw
Application Form.

3. Redraw under Advance Payment

(a) In the event that you have made payment of the Facility in an amount which
is in excess of your Monthly Payment amount, you may make request at a
branch, subject to the Bank’s approval and Terms and Conditions, to
withdraw the amount which is in excess of your monthly installment.
(b) The minimum advance amount in your financing account must be
Redraw Facility RM5,000.00 (Ringgit Malaysia Five Thousand) with minimum balance
available for next payment due after redraw to qualify for redraw of Advance
Payment application.

4. Redraw under prepayment and advance payment is only available upon full
disbursement of the facility.

5. The approved redraw amount shall be credited to your Current or Saving account
maintain with the Bank or such other account under your name maintained with
another financial institution, and provided to the Bank.

6. In the case of joint Customers, any application for redraw must be submitted by
the joint Customers and if successful, the amount shall be credited to the Current
or Saving account of the joint Customers.

7. The amount to be redrawn must be for a minimum of RM3,000.00 (Ringgit

Malaysia Three Thousand) and thereafter multiple of RM1,000.00 (Ringgit
Malaysia One Thousand) only .

8. A processing fee of RM25.00 (Ringgit Malaysia Twenty Five Only) shall be charged
for each successful application for redraw. The fees shall be debited from your
Current or Saving account where the redraw amount is credited.

9. Any monies withdrawn from the Employee Provident Fund shall be deemed as
Prepayment and shall not be available for redraw.

Copyright 2019 Affin Islamic Bank Berhad (709506-V)

8. What are my obligations?

 During the period where the property is under construction, the Customer is required to pay advance ijarah
which will commensurate with the amount disbursed during the tenure period. The, Customer is required to
pay the full installment amount upon completion of the construction of the property.

Example :

Total financing amount : RM350,000.00

Margin of finance : 90%

Tenure : 30 years

Ijarah Rate : BR+0.66% p.a.(ERR = 4.61% p.a.)

First 6 months monthly installment : RM1,796.35 (review every 6 months)

The total amount you must pay is RM646,686.00*

 Customer has to serve advance ijarah during construction period for a property under construction. The
BR shown in this disclosure sheet is subject to changes.

Important: Your monthly installment and total payment amount will vary if BR changes.

Rate BR= 3.95% If BR goes up 1% If BR goes up 2%

Monthly installment (RM) 1,796.35 2,011.48 2,237.62

Total profit cost at the end of
296,686.00 374,132.80 455,543.20
30 years (RM)
Total payment amount at the
646,686.00 724,132.80 805,543.20
end of 30 years (RM)

All calculations and information above are for illustration purposes only.
*Note: Total payment amount may vary subject to BR changes. Effective 10 May 2019, the revised BR is 3.95%
p.a.

9. What are the fees and charges I have to pay?

Type of Fee / Charge Details of Fee / Charge

Stamp Duty As per Stamp Act 1949 (Revised 1989)

Include fees for registration of land charge, land search and

Disbursement Fees
bankruptcy search.
The Customer is required to pay all legal fees and incidental
costs and expenses in connection with the Facility (including but
Legal fees pertaining to financing
not limited to the preparation, stamping and registration of any
documentations
security documents and the lodgement and withdrawal of
caveats). Security documentation for the financing is to be

Copyright 2019 Affin Islamic Bank Berhad (709506-V)

 handled by a solicitor under the Bank’s panel. Should a non-
panel solicitor be appointed by the Customer, the appointment
must comply with the Bank’s guidelines on application of a non-
panel solicitor and approval is subject to the Bank’s discretion.
However, to avoid any delay in the documentation process, the
appointment of the Bank’s panel lawyers is highly encouraged.
For completed properties only (only applicable in respect of the
Valuation Fees
initial valuation fees prior to the first drawdown of the Facility)
Processing Fees
No charges
(per application)
Redemption statement
RM50.00
(per account per request)
Redraw fees / charges for excess
RM25.00
payment (per transaction)
Security document retrieval fee
(per request – for complete set of RM30.00
documents)

Restructuring / Rescheduling fee No charges

Additional financing statement

RM10.00
(per request)
Letter of confirmation for EPF
RM20.00
withdrawal

Note:
i. We will communicate to you at least 21 calendar days prior to the effective date of implementation if
there are any changes in fees and charges that applicable to your financing facility.
ii. As per all other terms and conditions in the Letter of Offer.
10. What if I fail to fulfill my obligations?

 If you have problem meeting your financing obligation, contact us early to discuss payment alternatives.
Delay on your part could lead to the following consequences :
1 In the event your facility is in default for three (3) months or ninety (90) whichever is earlier on:

Ijarah Rate

(i) Payment of advance rental pending the commencement of monthly instalment: or

(ii) Payment of the monthly instalments.

the Bank shall provide written advance notice of not less than 7 days, revised the Ijarah and/or
Effective Profit Rate in the letter of offer to BR + 4.35% p.a calculated on the outstanding principal
or such other rate or basis of calculation of the rate based on regulatory requirements. The Bank
shall revert the Ijarah and/or Effective Profit Rate as per the Letter of Offer when months in arrears
fall below three (3) months or ninety (90) days or below, whichever is earlier.

When the Facility is classified as impaired, the Bank shall provide a written notice of not less than 7
days, revised the Ijarah and/or Effective Profit Rate in the letter of offer to BR + 6.35% p.a.
calculated on the outstanding principal or such other rate or basis of calculation of the rate based
on regulatory requirements. The Bank shall revert the Ijarah and/or Effective Profit Rate as per the

Copyright 2019 Affin Islamic Bank Berhad (709506-V)

 Letter of Offer when months in arrears fall to four (4) months or ninety (90) days or below,
whichever is earlier.

2. The above revised Ijarah Rate is subject to not exceeding the Ceiling Ijarah Rate.
 If you have problem meeting your financing obligation, contact us early to discuss payment alternatives.
Delay on your part could lead to the following consequences :
i. With prior notice, we have the right to set-off any credit balance in any of your accounts maintained
with us against any outstanding balance in this financing account.
ii. We shall exercise our right to invoke your purchase undertaking to purchase our share in the Property.
iii. We may proceed with legal action if you fail to respond to our reminder notices. Your property may be
foreclosed. You will have to bear all costs and expenses related to foreclosure. In the event that there
is a shortfall between the sale price of the property and the amount in arrears after your property is
sold, you are responsible to settle the shortfall (if any).
iv. Legal action against you may affect your credit rating leading to credit being more difficult or
expensive to you.

 Compensation Charges (Ta’widh)

 Before maturity of the Facility
A sum equivalent to one per centum (1%) per annum on overdue instalment(s) until date of full payment;

= Overdue rental or installment x 1% x no. of days overdue

365

 Upon and after maturity of the Facility

A sum equivalent to the prevailing daily overnight BNM’s Islamic Interbank Money Market Rate on
outstanding balance i.e. outstanding Bank’s Sale Price less ibra’ (if any);
= Outstanding balance x prevailing IIMM x no. of days overdue
365

 It shall commence from the date when payment was first defaulted to the date of actual payment even
when the Facility is terminated for any reason whatsoever.
 The compensation at the aforesaid rate shall be payable by you after as well as before any judgment or
order of court.
 Notwithstanding the amount of late payment charges charged, it is expressly acknowledged and agreed that
the said amount of late payment charges shall not be further compounded.
 Please refer to other obligations stated in the Bank’s Letter of Offer.

11. Do I need any Takaful coverage?

 Mortgage Reducing Term Takaful (MRTT) is compulsory.

o In the event of death and total permanent disability, the Takaful will pay off all outstanding amount of
your financing with the Bank. This will alleviate the burden of payment on your survivors or next of kin.
 House Owner Takaful
o House Owner Takaful/ Any other Takaful are optional. Should a piece of property be insured / covered
under a master insurance / Takaful policy, the Customer is required to extend a copy of the insurance /
Takaful cover note to the Bank every year.

Copyright 2019 Affin Islamic Bank Berhad (709506-V)

12. What are the major risks?

 The Ijarah Rate on this financing is floating and it is pegged to BR. Ijarah Rate may change according to
changes in the reference rates. An increase in Ijarah Rate may result in higher monthly payment/ extend
financing tenure.

13. What do I need to do if there are changes to my contact details?

 It is important that you inform us of any change in your contact details to ensure that all correspondences
reach you in a timely manner.
 In accordance with AFFIN Islamic Bank’s policy/guidelines and per standard security documents, any
change of contact details has to be in writing and duly signed off by the Customer(s) and addressed to Affin
Islamic Bank Berhad

14. Where can I get assistance and redress?

 If you have difficulties in making payments, you should contact us earliest possible to discuss payment
alternatives.
AFFIN BANK BERHAD
Consumer Loan Supervision & Asset Management
2nd and 9th Floor, Menara Serba Dinamik
No. P3.4, Persiaran Perbandaran
Section 14, 40000 Shah Alam
Selangor
Tel: 03-82302828
Fax: 03-55110453/ 03-55110454 (Level 2) & 03-55110457 (Level 9)
 If you wish to complaint on the products or services provided by us, you may contact us at:
AFFIN ISLAMIC BANK BERHAD
Customer Care and Quality
th
17 Floor, Menara Affin
80, Jalan Raja Chulan
50200 Kuala Lumpur Tel : 03-20559000
Fax : 03-20261104
Email :[email protected]

 Alternatively, you may seek the services of Agensi Kaunseling dan Pengurusan Kredit (AKPK), an agency
established by Bank Negara Malaysia to provide free services on money management, credit counseling,
financial education and debt restructuring for individuals. You can contact AKPK at:
th
8 Floor, Maju Junction Mall
1001, Jalan Sultan Ismail,
50250 Kuala Lumpur.
Tel : 03-26167766
Email : [email protected]

If your query or complaint is not satisfactorily resolved by us, you may contact Bank Negara Malaysia LINK
or TELELINK at:
Block D, Bank Negara Malaysia
Jalan Dato’ Onn,
50480 Kuala Lumpur.
Tel : 1-300-88-5465
Fax : 03-21741515

Copyright 2019 Affin Islamic Bank Berhad (709506-V)

 Email : [email protected]

15. Where can I get further information?

 Please visit the nearest AFFIN ISLAMIC / AFFINBANK branch or call our Contact Centre 03-8230 2222 or visit
our website www.affinislamic.com.my / www.affinonline.com for further details.

16. Other property financing packages available

 AFFIN Home Assist Plus-i
 AFFIN Home Invest Plus-i
 AFFIN Premier Corporate Home Financing-i
 AFFIN BNM Priority Sector Home Financing-i
 AFFIN Home Build-i
 AFFIN Tawarruq Term Financing-i
 AFFIN Home Credit Plus-i (Remortgage)
 AFFIN Home Extra Plus-i (Enhancement)
 AFFIN Tawarruq Cash Line-i

IMPORTANT NOTE:
YOUR PROPERTY MAY BE FORECLOSED IF YOU DO NOT KEEP UP PAYMENTS ON YOUR FINANCING AND YOU WILL
HAVE TO BEAR ALL COSTS AND EXPENSES INCURRED BY THE BANK IN RELATION TO THE BANK’S FORECLOSURE
ACTION.

The information provided in this disclosure sheet is valid as at 23 Sept 2019

Copyright 2019 Affin Islamic Bank Berhad (709506-V)