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Own a property with peace of mind via hassle-free financing process

HOW DOES IT BENEFIT YOU

Attractive Financing Package

Hassle- free application

Mortgage Term Reducing Takaful (MRTT) to protect against unforeseen events

HOW DOES IT WORK

1. Check your eligibility

Ensure you meet one of the eligibility criteria below, then calculate your monthly instalment. This applies to completed or under construction residential or commercial properties

iconImage-/content/dam/hlisb-new/commonimages/Check-Point.png

Individual

Sole Proprietorship & Partnership

Private Limited Companies

2. Shariah Concept applicable

The Shariah principle used is Murabahah via Tawarruq arrangement. Tawarruq refers to purchasing an asset with deferred price, then selling it to a third party to obtain cash.

3. Contracted profit rate

Under this product, you are protected against a higher rate by the ceiling rate i.e. the Contracted Profit Rate (CPR) where the Selling Price is capped at CPR.

Effective 2 Jan 2015, the Islamic Base Rate (IBR) will replace the Islamic Financing Rate (IFR) as the new reference rate for new retail floating rate financing facilities for individual customers.

The introduction of Islamic Base Rate aims to:

• Promote a transparent reference rate that allows meaningful comparison to be made for informed decision making by customers;

• Encourage more disciplined and efficient practices by the financial institution/bank in the pricing of retail financing facilities; and

• Better reflect changes in the cost of funds arising from monetary policy or market funding conditions

What is Islamic Base Rate?

Before 2 Jan 2015

Islamic Financing Rate (IFR)

Financing extended prior to 2 January 2015 will be continue to be referenced against the Islamic Financing Rate (IFR) until their respective maturities

From 2 Jan 2015

Islamic Base Rate (IBR)

Effective 2 January 2015, a new rate reference known as the Islamic Base Rate (IBR) will be used for new floating rate financing facilities for individual applicants.

How is the Indicative Effective Profit Rate (EPR) determined?

Islamic Base Rate - Benchmark Cost - of - Fund & Statutory Reserve Cost

Spread - Bank's operating cost & Profit margin

Standard House Financing's Indicative Effective Profit Rate
Terms	Islamic Base Rate
Financing Amount	RM350,000.00
Financing Tenure	30 years
Lock-in Period	NIL
Reference Rate	3.35%
Indicative Effective Profit Rate	IBR + 0.72% (2.63% + 0.72%) = 3.35%
Monthly Installment	RM1,543.00

What should you do as a customer?

1. Compare the indicative effective profit rates quoted by different financial institutions before taking out a new financing.

2. Ask for a Product Disclosure Sheet (PDS) providing you with the indicative effective profit rate and total payment amount for the financing facilities you plan to take out.

3. Ask your financial institution to explain the factors which may lead to a change in the Islamic Base Rate.

4. Your monthly payment amount will increase or decrease when there is a change in the Islamic Base Rate.

5. You should also assess whether you can continue to afford the financing payments if the indicative effective profit rate increases in future.

The following are the non-exhaustive list of fees and charges, or visit any of our branches for further information.

Description / Service	Charges/ Fee*
Trading/Agency fee	Waived
Withdrawal of advance payment fee	RM50.00 per request/withdrawal
Early settlement charges	Actual cost incurred by the Bank at the point of early settlement For HLISB, it shall reflect the costs incurred by the Bank as a direct result of early settlement. Such costs may include: costs that have not been recovered because a financing contract with discounted rate during the lock-in period is terminated early; and initial costs that have not been recovered In the event the applicant(s) / customer(s) settle in full the facilities during the lock-in period, the rebate shall be reduced based on the cost above. The rebate calculation is as per below: Rebate = remaining unearned profit - early settlement charges* i) cost that have not been recovered because a financing contract has a structure with discount elements at the initial period of financing; and/or ii) initial costs that have not been recovered (e.g. zero moving cost products)
Termination Fee for cancellation of financing prior to financing disbursement	RM2,000.00
Redemption Statement fee	RM50.00 per request Note: Applicable for residential financing under individuals only (for HLISB)
Letter of confirmation for EPF withdrawal fee	RM20.00 per request
Security document retrieval (per request) – request for photocopy	RM2 per page, min RM10 and max RM60.00
Compensation charges	For default payment during facility tenure = 1% p.a. on the overdue instalment amount For default payment causing the facility to be terminated or brought to court = 1% p.a. on the outstanding balance (outstanding principal plus accrued profit) For default payment after expiry of facility tenure = BNM Islamic Interbank Money Market (“IIMM”) rate on the outstanding balance (outstanding principal plus accrued profit) For default payment post judgment = IIMM rate on the basic judgment sum
Stamp Duties	As per Stamp Duty Act 1949 (revised 1989).
Legal Fees	As per the scale in the Solicitors’ Remuneration Order (SRO)
Disbursement Fees	Disbursement Fees including but not limited to registration fee, search fee, government tax and any other taxes or levy as per the scale fees charged by the respective authorities and/or legal firms.
Valuation Fees	As per the Seventh Schedule (Rule 48) of the scale fees set by the Board of Valuers, Appraisers and Estate Agents Malaysia.
Processing Fees	One-time fee shall be charged for approved financing. Currently all processing fees are waived Processing Fee is not applicable for HLISB.
Miscellaneous Fees	Miscellaneous Fees including but not limited to online IBG payment, IBG via ATM machine, cheque processing fee and any other fees or charges that may be imposed by the respective relevant authorities from time to time with prior notice.
Additional financing statement	RM10.00 per request

*Subject to Government Tax, if applicable

Acceptable Income Documents	Individual Applicant (Employed)	Individual Applicant (Self-Employed)	Private Limited Companies
	Latest 3 months salary slips	Latest 6 months bank statements or savings passbook	Latest 3 years audited account
	Latest Borang BE (supported by tax payment receipt)	Latest Borang B (supported with tax payment receipt)	Latest 6 months bank statements
	Latest EPF statement	Latest 6 months commission statements	Latest Borang B of the directors (supported with tax payment receipt)
	Latest 3 months bank statement / saving passbook	N.A	N.A
	Letter of employment	N.A	N.A

Note:

1. Other form of income substantiation may be acceptable on case to case basis e.g. Tenancy Agreement or Rental Income Receipts.

2. The above documents have to be independently verifiable

Application Form

Product Disclosure Sheet (Individual)

Product Disclosure Sheet (Business)

Product Disclosure Sheet - HLM Takaful

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