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PRODUCT DISCLOSURE SHEET (Read this Product Disclosure Sheet before you decide to take out the Property
PRODUCT DISCLOSURE SHEET (Read this Product Disclosure Sheet before you decide to take out the Property
PRODUCT DISCLOSURE SHEET
(Read this Product Disclosure Sheet before you decide
to take out the Property Financing-i (Tawarruq) –
Baiti Home Financing. Be sure to also read the terms
in the letter of offer. Seek clarification from your
institution if you do not understand any part of this
document or the general terms)
Bank Islam Malaysia Berhad
Property Financing-i (Tawarruq)
Baiti Home Financing
Date :
_______________
(dd/mm/yy)
1.
What is this product about?
This product is a financing facility provided by the Bank to assist you to finance the purchase of a
residential property. The profit rate is calculated on a variable rate basis and the facility is to be fully
secured against the property to be financed.
2.
What is the Shariah concept applicable?
The Shariah concept applicable is Tawarruq. The structure and its mechanism are as follows:
1.
Customer executes Sale & Purchase Agreement (SPA) with Property Developer/ Vendor and becomes
the owner of a property. In the event that SPA is not available, Letter of Intent may be used as a
preliminary document.
For refinancing cases, the property may already be owned by the Customer (subject to structure
executed with earlier financier).
2.
Customer applies for financing with the Bank under the Shariah concept of Tawarruq, for the purpose
of settlement of the property purchased with Property Developer/ Vendor (or existing financier).
For refinancing cases, the purpose of financing is to settle the existing financing with original financier.
Note:
Later, the property will be charged to the Bank to secure the payment for the financing.

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Property Financing-i (Tawarruq) Baiti Home Financing Version 2.0 January 2013

on deferred payment basis. Note : Note : iii. iv. ii. 4. 7. 5. 3. 6.
on deferred payment basis. Note : Note : iii. iv. ii. 4. 7. 5. 3. 6.
on deferred payment basis.
Note :
Note :
iii.
iv.
ii.
4.
7.
5.
3.
6.
i.
  • 3. What do I get from this product?

  • Total financing amount : RM____________ Open Market Value, whichever is lower)

against the purchase price or

(___________%

  • Tenure :

________

years

 Base Financing Rate (BFR) : ________% BFR - ________%  Effective Profit Rate : _________%
 Base Financing Rate (BFR) : ________% BFR - ________%  Effective Profit Rate : _________%
  • Base Financing Rate (BFR) : ________%

  • BFR - ________%
    Effective Profit Rate : _________%

    • Profit Rate :

Upon receipt of Tawarruq transaction documents from the Customer, the Bank would purchase the commodity from Commodity Broker A.

Tawarruq transaction documents include the following:

Appointment of the Bank as Sales Agent (ABSA) Offer to Purchase (OTP) Tawarruq Master Facility Agreement (TMFA) Tawarruq Agency Agreement (TAA)

The Bank then sells the commodity acquired to the Customer at Bank’s Sale Price (Principal + Profit)

Acting as a Sales Agent of the Customer, the Bank then sells the commodity to Commodity Broker B on behalf of the Customer.

The proceeds from the sale of commodity are utilized for the settlement of the property purchased.

For refinancing cases, proceeds are paid directly to the existing financier and/or Customer.

Customer pays the Sale Price (Principal + Profit) of the commodity by way of an agreed deferred payment term.

4. Today (BFR = ______%) years is RM _____________ Important: Your monthly instalment and total payment
4.
Today (BFR = ______%)
years is RM _____________
Important: Your monthly instalment and total payment amount will vary if the BFR changes.
Your monthly instalment is RM _____________
RM ___________
Total profit cost at the end
of
_______
years
RM ___________
Total payment amount at
the end of
years
_______
RM ___________
If BFR goes up 1%
What are my obligations?
Monthly Instalment
Total payment amount at the end of
_______
Profit Rate
RM ___________
RM ___________
If BFR goes up 2%
RM ___________
RM ___________
RM ___________
RM ___________

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Property Financing-i (Tawarruq) Baiti Home Financing Version 2.0 January 2013

Notwithstanding the above illustration, your monthly instalment amount shall remain unchanged provided that the amount is

Notwithstanding the above illustration, your monthly instalment amount shall remain unchanged provided that the amount is sufficient to service the monthly profit. The difference in the monthly instalment amount shall be accumulated at the end of the financing tenure. You may however submit your written request to the Bank in the event that you wish to service a higher monthly instalment amount in accordance to the increase in BFR.

The Bank reserves the right to revise the monthly instalment amount from time to time in accordance to the prevailing BFR in the event that the current instalment amount is not sufficient to service the monthly profit.

Customer is obliged to pay the monthly payment until full settlement of the financing.

Should the

financing tenure extended beyond the retirement age, the customer is still obliged to pay the monthly

payment.

However, the customer may opt at any time to fully settled the financing upon reaching

retirement age.

  • 5. What other charges do I have to pay?

 
 
  • a) Stamp Duties

As per the Stamp Act 1949 (Revised 1989)

 
 
  • b) Disbursement Fee

Include fees for registration of charge and other related charges

 
  • c) Legal Fees pertaining to securities documentations

You are required to pay all legal fees and incidental expenses in connection with the Banking Facility (including but not limited to the preparation, stamping and registration of any security documents and the lodgement and withdrawal of caveats).

 
  • d) Valuation Fees

Applicable for completed properties only

 
 
  • e) Processing Fees

Waived

 
  • f) Wakalah Fees

RM50.00

  • 6. What if I fail to fulfil my obligations?

 
  • You are to pay to the Bank all costs pertaining to the solicitor’s fees, stamp duties and registration fees and other expenses for the preparation and registration of securities documents in connection with the Facility including the expenses incurred during the claim process if this Facility is cancelled after acceptance of our Letter of Offer.

  • You shall pay the Bank late payment charges by way of ta'widh (compensation) as follows:

 

a.

Before maturity of the Facility:

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

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Property Financing-i (Tawarruq) Baiti Home Financing Version 2.0 January 2013

b. After maturity of the Facility: A sum equivalent to the prevailing daily overnight Islamic Interbankcontactcenter@bankislam.com.my Page 4 of 5 Property Financing-i (Tawarruq) Baiti Home Financing Version 2.0 January 2013 " id="pdf-obj-3-2" src="pdf-obj-3-2.jpg">
 
  • b. After maturity of the Facility:

A sum equivalent to the prevailing daily overnight Islamic Interbank Money Market Rate on outstanding balance i.e. outstanding Selling Price less ibra’ (if any);

  • c. Post Judgment Debt A sum equivalent to the prevailing daily overnight Islamic Interbank Money Market Rate on basic judgment sum calculated from judgment date until date of full payment.

PROVIDED ALWAYS that the above said ta’widh (compensation) rates may be varied by Bank Negara Malaysia (BNM) from time to time and shall be applied in such manner as approved by BNM.

 

Legal action will be taken if you fail to respond to reminder notices. Your property may be foreclosed and you will have to bear all costs. You are also responsible to settle any shortfall after your property is sold.

Legal action against you may affect your credit rating leading to credit being more difficult or expensive to you.

  • 7. What if I fully settle the financing before its maturity?

 
 

The Bank undertakes to grant you an Ibra’ (rebate) which is equivalent to the deferred Profit at the point of settlement.

 

Ibra’ formula :

 

Ibra’ / Rebate on early settlement = Deferred Profit

 
 

Note :

i.

Deferred Profit = Total Contracted Profit Accrued Profit

ii.

Total Contracted Profit = Selling Price Purchase Price (or Financing Amount)

iii.

Accrued Profit is calculated based on Effective Profit Rate of the outstanding Purchase Price (or Financing Amount) being disbursed (or utilized)

 
  • 8. Do I need any takaful coverage?

 
 

Mortgage Reducing Term Takaful (MRTT) - compulsory

Long Term Houseowner Takaful (if applicable)

Note :

Quotations will be provided by the Bank for MRTT / Takaful offered by the Bank’s panel of

 

Takaful operators. You are free to choose the service of any non-panel takaful operators in the country. However, to avoid any delay for disbursement of the financing amount, the appointment

of the Bank’s panel Takaful is highly encouraged.

  • 9. 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.

10.

Where can I get assistance and redress?

 

If you have difficulties in making payments, you should contact us earliest possible to discuss repayment alternatives. You may contact us at :

Contact Centre 17 th Floor, Menara Bank Islam No. 22 Jalan Perak 50450 Kuala Lumpur Tel : 03-26900900 Fax : 03-27821352 E-mail : contactcenter@bankislam.com.my

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Property Financing-i (Tawarruq) Baiti Home Financing Version 2.0 January 2013

Alternatively, you may seek the services of Agensi Kaunseling dan Pengurusan Kredit (AKPK), an agency established
Alternatively, you may seek the services of Agensi Kaunseling dan Pengurusan Kredit (AKPK), an agency established
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 counselling
and debt restructuring for individuals. You can contact AKPK at:
Tingkat 8, Maju Junction Mall
1001, Jalan Sultan Ismail
50250
Kuala Lumpur
Tel : 1-800-22-2575
E-mail : enquiry@akpk.org.my
If you wish to complaint on the products or services provided by us, you may contact us at :
Contact Centre
17 th Floor, Menara Bank Islam
No. 22 Jalan Perak
50450
Kuala Lumpur
Tel : 03-26900900
Fax : 03-27821352
E-mail : contactcenter@bankislam.com.my
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
E-mail
:
bnmtelelink@bnm.gov.my
11.
Where can I get further information?
Should you require additional information about taking a house financing, please refer to the bankinginfo
booklet on “House Financing”, available at all our branches and the www.bankinginfo.com.my website.
12.
Other house financing packages available
Property Financing-i (Tawarruq) - Wahdah Home Refinancing
IMPORTANT NOTE : YOUR HOUSE MAY BE FORECLOSED IF YOU DO NOT KEEP UP PAYING
ON YOUR HOME FINANCING
The information provided in this disclosure
(dd/mm/yy)
sheet is
valid as
at
(dd/mm/yy)
or until
Note
:
1.
The above is for illustration purposes only. Profit and charges may vary and subject to the Bank’s

terms and conditions.

  • 2. The above information provided in this disclosure sheet is valid as at date hereof.

  • 3. The BFR shown in this disclosure sheet is subject to changes.

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Property Financing-i (Tawarruq) Baiti Home Financing Version 2.0 January 2013