Frequently Asked Questions (FAQs)
AIA Fixed Rate Home Loan Products and Features
Q1: What is the AIA Fixed Rate Home Loan all about?
A: It is an easier financial solution with AIA. The hassle-free fixed rate home loan is truly fixed for the whole duration of the loan.
Q2: What do you mean by Fixed Rate?
A: It means that the interest rate on the home loan will not change over the duration of the loan.
Q3: What interest rate is applicable?
A: The interest rate is dependent on the type of property, location, construction risk and whether fees are borne by the customer. Currently, there are two types of loan packages; 4.85% for ZEC and 5.25% for NZEC. However, these packages are subjected to change from time to time. For latest offer, please call +6012 3180153 for more details.
Q4: What are the key benefit(s) of AIA Fixed Rate Home Loan?
A: You may enjoy the following key benefit(s) when you own a Fixed Rate Home Loan:
- Pay more whenever you want to; notice not required
- No penalty for early settlement excluding refinancing
- Peace of Mind
- No need to worry about rising interest rates due to economic uncertainty
- Enjoy monthly repayments that stay constant
- Your home loan payments end the day they are supposed to, not a day more
- Save even more on interest (based on Daily Rest calculation)
- Shelter for Life
- Protect your family from the burden of repaying your loan should something happen to you.
Q1: How Many years can I borrow?
A: You can take a maximum of 30 years or up to age 65, whichever is earlier. If there is more than one applicant, the average age of the application servicing the loan will be taken into consideration.
Q2: What is the instalment like?
A: It is dependent upon the loan amount, loan tenure and interest rate. You may seek our Mortgage Advisor assistance to obtain an indication on the minimum repayments before you decide to proceed.
Q3: What type of property must I have? Is it applicable for uncompleted properties?
A: We finance all types of residential properties subject to the project location and developer profile. The property may be completed or even under construction (as per AIA’s list). Please ask for more details.
Q4: I am interested in a property that is outside of Klang Valley/Selangor. Is it eligible under AIA Home Loan?
A: Yes, AIA Fixed Rate Home Loan will finance residential properties in Klang Valley and all major towns in Malaysia including Ipoh, Penang, Seremban, Malacca, Johore Bahru, Kuching and Kota Kinabalu.
Q5: Do I need to purchase any insurance?
A: As part of the loan requirement, you are required to take up either an AIA Mortgage Reducing Term Assurance (MRTA) or a Mortgage Life Term Assurance (MLTA) that matches the loan amount. In addition, the property should be protected by AIA Houseowners Insurance.
Q6: Can I finance my MRTA?
A: Yes, you may include the MRTA premium amount as part of the total package subject to the maximum margin of financing.
Q7: Can I finance my shop lot?
A: AIA Mortgage is not open for commercial loan submission at the moment.
Q8: Is there any lock in period for AIA Fixed Rate Home Loan?
A: Yes, the lock in period for AIA Fixed Rate Home Loan is 5 years. However, there will be no penalty if you fully settle the loan by own cash, EPF or due to sale of property.
Q9: What is Mortgage Reducing Term Assurance (MRTA)?
A: The AIA Mortgage Reducing Term Assurance (MRTA) is a policy that pays off the outstanding principal loan in the unfortunate event of death or total permanent disability. The policy would protect your family from the burden of repaying your loan should something happen to you. MRTA is a single premium policy and the premium is payable prior to the loan released. It has no residue value and sum insured reduces over the years that match the loan tenure.
Q10: What is the premium for the MRTA?
A: It is dependent upon the loan amount, loan tenure, construction period and interest rate, age and health condition of the applicant(s).
Q11: What about the Mortgage Life Term Assurance (MLTA)?
A: Alternatively, you may take up AIA life or term policy that covers death and total permanent disability. The policy must be absolutely assigned to AIA and at least equal the loan amount, loan tenure and construction period.
Q12: So what are differences between MRTA and MLTA and which is suitable for me?
A: MRTA is one single premium payment and MLTA is a monthly/Quarterly/or Yearly premium payment. You may opt for either one depending on your need, budget and objective.
Q13: What is House owner policy?
A: It is basically a Fire Insurance Policy protects your home from fire and other perils. You may also choose to insure the household contents under our Householder’s insurance available at competitive rates.
Q14: Do you require a valuation report for my property?
A: Yes, A valuation report is required if you have brought a completed property. The Valuer will be appointed from the list of panel Values by AIA.
Q15: Why is it necessary to have a valuation report for my property?
A: The Valuation report is necessary to help ascertain that the open market value of the said property is not less than the loan amount.
Q16: Who will bear the cost for the valuation report?
A: The valuation fee for this service depends on the value of your property and it will be borne by you. AIA will only bear the fee if a Zero Entry Cost package is selected.
(Please refer to Fee Quotes schedule)
Q1: How do I qualify?
A: As a general guide, the installment amount must be within 50% of your monthly nett income, not a bankrupt or currently sued by any other party?
Q2: What documents do I need to submit together with my application?
A: To ensure fast approval, please submit the following documents:
For salaried employee
- Copy of NRIC (both sides on one page)
- Latest 1 year income tax form BE, EA and EPF statement
- Latest 3 months salary slips and/or 6 months commission statement and 3 months bank account statement
- Sales & Purchase Agreement/deposit receipt
- Copy of Property title (for completed properties)
For self employed
- Copy of NRIC (both side on one page)
- Latest 6 months personal and company bank account statement
- Copy of property title (for completed properties)
- Form 24 & 49 and company registration form
- Latest 2 years audited account
- Latest 1 year income tax form B
Q3: How do I know my home loan application had been approved by AIA?
A: Upon acceptance of the loan application, you will receive a letter of offer and the bank’s lawyer will prepare the necessary loan documentation for disbursement of loan.
Q4: What is included in loan documentation fee under Zero Entry Cost package?
A: For Zero Entry Cost package, the loan documentation fee shall include professional fees, stamp duty (for loan document), disbursement, discharge of charge (for refinancing cases) as well as valuation report fee.
Q5: How much is the loan processing fee?
A: This is waived for all loan applications.
Q6: What about legal fees?
A: You have a choice of paying all legal fees and charges incurred for the loan documentation or allowing AIA to pay. Should AIA bear the legal fees and charges incurred for the loan documentation including the valuation report fee, the Zero Entry Cost package would be applicable.
Q7: Can I appoint my own lawyers to attend to the loan documentation?
A: Yes, you can appoint your own lawyers but the legal firm is subject to AIA approval.
Q8: How much would be the loan documentation fee?
A: The lawyer will advise you accordingly with regards to legal fees and other charges imposed by the respective government agencies. Specifically, the charges are professional fees, land search fees, valuation fees and stamp duties, which will be incurred in the course of preparing the loan agreement. Please refer to Fee Quotes schedule.
Q9: How long would it take to complete the loan documentation?
A: The time taken to complete the loan agreement will be between two to six months, depending on the type of property that you have purchased. Your lawyer will notify you to sign and execute the agreement once it is ready.
Managing my home loan
Q1: Can I remit my monthly instalment via online if I own the AIA Fixed Rate Home Loan?
A: Yes, You can make your monthly instalment via Maybank2u.com or visit any of our AIA nationwide Service Centre to make your payment.
Q2: Can I sign up auto debit to deduct my monthly instalment?
A: Yes, You can sign up auto debit to deduct your monthly instalment via Public Bank or Maybank.
Q3: How long would it take for the bank to approve my auto debit application?
A: The banks will take approximately one (1) month to process the application. Therefore, you are required to remit your monthly instalment first until you receive a confirmation letter from AIA Mortgage advising you the bank auto debit commencement date.
Q4: What happens if I have difficulties in meeting my home loan monthly instalment?
A: If you have any difficulties meeting your repayments, please contact us at 1300-88-1899 and we will help you and discuss with you regarding your circumstances and options available.
Q1: What is refinancing? Could you please explain in a nutshell the meaning of refinancing and what it entails?
A: Generally, Malaysian refer to Refinancing as fully repaying their existing loan with funds from another loan secured by the same property as the first loan.
Q2: How does refinancing work?
A: You have an existing housing loan with another financial institution. We are able to extend a loan up to 90% based on the property’s open market value to you. Firstly, to settle all outstanding amounts with the said financial institution and thereafter, the balance (if any) will be given to you for renovation, children’s education, family holiday, etc.
Q3: Why and when should I refinance?
A: You should only consider refinancing upon exploring with your existing financier on your home loan needs.
Refinancing can be considered if you are looking to meet the following objectives.
- To reduce monthly home instalment.
- To reduce interest rate or cost of borrowing.
- To change the term to maturity or extending the repayment period.
- To capped risk (eg. Refinancing from a floating rate to fixed rate home loan).
- To raise additional fund which can be used for various reasons i.e. Pay off borrowing bearing higher interest rate, pay off short term debt, etc.
- To improve overall cash flow budgeting.
Q4: What are the pros and cons if I refinance my home loan?
- Pros : You may receive more favourable loan terms and conditions in term of interest rates, prepayment conditions, etc. as compared to your first loan
- Cons : You may need to incur additional costs to perfect the loan agreement and to settle the stamp duty. If these costs are already covered by the financier, the loan will usually be imposed with a higher interest rate. Additional, fresh terms may also be imposed in a refinancing arrangement for example lock in period will start all over again.
Q5: What should I look out for when refinancing my home loan? (e.g. interest rates, loan periods, etc). What are the terms and conditions that I should be aware of before opting to refinance/while choosing a home loan?
A: You should be aware of the cost that you will need to incur to complete the whole refinancing process. This includes any fees or penalties that your existing financier may impose upon exiting from your current loan contract. In addition, a responsible financial institution via mortgage advisor that offer professional advice and excellent customer service is also a key consideration because you and your existing financier will be establishing and engaging in a long term relationship for the whole duration of your loan tenure.
Q6: When is a good time for me to refinance my home loan?
A: You can refinance anytime as long as you have a valid reason to do so. However before you do so, you must ensure your needs are matched accordingly with the new home loan offer and ensure the up front, on-going and refinancing cost is properly calculated.
Q7: What are the steps to take when I refinance my home loan?
A: Know what you want. Do a basis financial plan for yourself. Some of the elements that are important to include in this financial plan are the exact time period you want to complete paying off your housing loan. In addition, be certain how much interest will be incurred for the entire duration of the loan.
Product search and product suitability. Know the different types of home loans available in the market. Some home loans are based on fixed interest rate while some are based on floating interest rate. Understand how each type can help you achieve your financial plan. It is good to know to what extent of certainty each type of home loan can help you achieve your financial plan.
You may contact and discuss with our AIA Mortgage Advisor to assist you and make well informed decision.
You may call HH Wong at +6012 318 0153 or email to email@example.com if you don’t find what you are looking for.