AIA Fixed Rate Home Loan
The smarter home loan solution

 

Frequently asked questions (FAQ) of AIA Home Loan

 

Frequently asked questions (FAQ) of AIA Home Loan

 

What are the benefits of AIA’s Fixed Rate Loan?
AIA's Fixed Rate Loan is suitable if you're purchasing a property or keen to switch the loan you currently have to the one we offer. Fixed Rate Loan offers stability by locking at a fixed rate so that your monthly installments are constant throughout the duration of the loan. You do not have to worry about your payments increasing even if interest rates rise, as our home loan comes with a fixed rate throughout the term of the loan.

Who can apply for the loan?
Those who are:
- Individual Malaysian citizens or are permanent residents.
- For those who are self-employed, the business must be established for at least 3 years and has operating profits for the past 3 years.
- Foreigners staying and employed in Malaysia for a period of time with valid working permits or are married to Malaysians.

What is Margin of Finance (MOF)?
For new purchases, the MOF is based on the Open Market Value (OMV) or the purchase price of the property, whichever is lower. For refinancing, the MOF is based on the OMV. The OMV will be based on the valuation report prepared by our panel of valuers.

Residential property: MOF is up to 90% for New Purchase & up to 90% for Refinance
Commercial property: MOF is up to 80% for New Purchase & up to 90% for Refinance

Exceptions can be considered on a case by case basis.

What is the loan tenure available?
For residential properties, it is up to 35 years or age 70, whichever is earlier. For commercial properties, it is up to 30 years or age 65 whichever is earlier.

What types of properties do AIA finance?
We finance completed landed residential properties such as single-storey houses, double-storey link houses, semi-detached houses, bungalows and others. We also finance properties under construction by selected projects and developers. For more detailed information, we advise that you connect with our AIA Life Planner.

Do you finance construction of a house if my land has already been paid off?
No, we do not.

If I am not an AIA policy holder, can I apply for the loan?
Yes, you can. However, you are required to purchase the AIA Group Mortgage Reducing Term Assurance or the AIA Life Policy to secure the loan.

I am married, can I apply as a single applicant?
We encourage for both husband and wife to apply together. However, we do consider single application on case to case basis.

Is a valuation report required?
Yes, a valuation report is required by our panel of valuers once the loan is approved. Valuation report may be waived for newly completed properties purchased directly from developers at our discretion.

Can we have our own solicitor's firm to prepare the loan documentation?
No. You are required to use the solicitors that are on our panel.

I am healthy and I do not wish to buy insurance.
When you buy an insurance policy, you are transferring the risk of a potential financial loss to the insurance company in exchange for a fee. The insurance company, in return, promises to provide you with financial assistance if you face an unexpected loss.

Insurance coverage should be a key component of anyone’s financial planning. We all work very hard to secure a bright future and afford a lifestyle that we can enjoy. As we keep working towards our financial goals, we must not forget to protect what we have already achieved.

Can I assign my existing AIA policy instead?
Yes. However, the coverage of the policy must not be less than the loan amount.

I can always sell my property if anything happens to me. After all, is the property not sufficient as security?
We all work very hard to secure a bright future and afford a lifestyle that we can enjoy. As we keep working towards our financial goals, we must not forget to protect what we have already achieved. We advise that you consider purchasing an insurance policy or the Group Mortgage Reducing Term loan to ensure that you and your property are protected.

Is Life Insurance or Group Mortgage Reducing Term assurance expensive?
We have a variety of life policies to suit your needs. You can even opt for the Group Mortgage Reducing Term assurance where you only need to pay one lump sum and we will cover you for the entire loan period.

I would like to find out more about AIA’s Fixed Rate Home Loan. Who should I contact?
Please leave us your contact details by clicking on this link.