AIA Fixed Rate Mortgage AIA confidential and proprietary - - PowerPoint PPT Presentation

AIA confidential and proprietary information. Not for distribution.

AIA Fixed Rate Mortgage

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

DISCLAIMER

For internal staff and agent training only. This document is not a sales material and cannot be used for circulation to prospects. It serve only as a training guide to the agent in the selling concept

• f the products mentioned.

In the actual selling process, the customer’s needs, affordability and preference must be considered to deliver fair value to the customer. The detailed product benefits and cost must be explained to help customers make informed decisions. Only AIA authorized sales materials are to be used when prospecting.

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

AIA Fixed Rate Mortgage

• 1. What is AIA Fixed Rate Mortgage
• 2. Unique Selling Proposition &

Product Features

• 3. Underwriting Guidelines
• 4. AIA Shop Loan

AIA confidential and proprietary information. Not for distribution.

01 What is AIA Fixed Rate

Mortgage?

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

AIA Fixed Rate Mortgage

Introducing AIA Fixed Rate Mortgages – a home loan with interest rate that does not change throughout the life of the loan. House owners can spread out payment for expensive purchases by making smaller, predictable amount over a long period of time. Because the interest rate does not change, homebuyers are protected from sudden increases in monthly mortgage payments should interest rates rise.

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

Current Packages

• Lowest Long Term Fixed Rate In The

Market

• Since 2010, the BLR has increased 5

times and gone up by a total of 1.3%p.a

• Average lending rates (as compiled by

BNM) 10 years = 5.71% 15 years = 6.61% 20 years = 7.36% 30 years = 8.42%

Package 1 4.99% p.a Fixed

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

Current Packages

• Zero Moving Cost (ZMC)
• Switch without paying for legal fees,

stamp duty, disbursement and valuation fees (loan documentations only).

• Example:

Loan RM500,000 Legal Fees : RM3950 Stamp Duty : RM2500 Disbursement : RM1200 (approx) Valuation : RM900 (approx) Total : RM 8550 (approx 2% of the loan amount)

Package 2 5.39% p.a (With ZMC)

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

Current Packages

• Get the best of BOTH
• Effective BLR – 2.46% for 2 years
• Plus low fixed rates for rest of tenure

Package 3 4.39% p.a (2 years) 5.15% p.a. (Thereafter)

No early termination fee if settlement the loan is via sale of property and own savings for all 3 packages

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013 8

Mortgage Step Up Campaign

4.99%p.a. with Zero Moving Cost*

Minimum Loan Amount RM500,000 and above Fixed For The Entire Loan Duration

Fro rom 1st

st

De December 20 2015 *Te *Terms & Co Condit itio ions Ap Apply Lim Limit ited Pe Perio iod On Only

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

Specific Terms and Conditions

9

• 1. Zero Moving Cost Feature (Legal Fee, Stamp Duty, Disbursement and

Valuation for loan agreement only).

• 2. Only for loan amount of RM500,000 and above.
• 3. Applicable to refinancing, new purchase and sub sales application.
• 4. Margin of finance shall be up to 90% for purchase and up to 80% for

refinancing.

• 5. All other existing terms and conditions apply.
• 6. Strictly applicable for new applications received on 1 December 2015
• nwards. No appeals will be entertained for loans that have been

previously approved, accepted or pending disbursement.

• 7. In the event of any dispute, the decision by Mortgage Operations is

FINAL.

Important Note - All packages are still subject to review on a month to month basis based on funds availability and market conditions.

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

Fixed Rate Islamic Housing Loan With Insurance Without Insurance Zero Moving cost (ZMC)

7.85% p.a. 7.95% p.a.

Non Zero moving cost

7.65% p.a. 7.75% p.a.

Bank A (as at Dec 2015)

Islamic Loan

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

Base Rate of Banking Institutions as at 2 Jan 2015 Bank BR (%) * Indicative Effective Lending Rate (%) Effective date Affin Bank 3.99 4.75 2-Jan-15 Alliance Bank 4.00 4.65 2-Jan-15 Ambank 3.99 4.45 2-Jan-15 CIMB Bank 4.00 4.65 2-Jan-15 HSBC Bank 3.90 4.85 2-Jan-15 Hong Leong Bank 3.99 4.65 2-Jan-15 Maybank 3.20 4.55 2-Jan-15 OCBC Bank 4.02 5.05 2-Jan-15 Public Bank 3.65 4.45 2-Jan-15 RHB Bank 4.00 4.65 2-Jan-15 Standard Chartered Bank 3.67 4.67 2-Jan-15

Base Rate

* The indicative Effective Lending Rate maybe subject to change from time to time at the discretion of the respective Financial Instituitions.

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

02

Unique Selling Proposition (USP) and Product Features

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

Product Features

Guaranteed Fixed For The Entire Loan Duration

• The quoted BLR rate, and the minus %, is subject

to change at the simple discretion of the bank

Daily Rest Calculation

• Daily Interest based on principal outstanding.
• The more you pay, the greater the savings.

Flexibility

• Pay off the loan, or sell off the property anytime

without no penalty (unless stated otherwise)

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

Product Features

Real Capital Gains

• Property value appreciate over time, but

portion of interest payable remains fixed

Free Up Future Incremental Income

• Loan installment remains the same
• When income increases over time, more funds for

children education, renovations, etc.

Loan Consolidation

• Consolidate all loans into 1 simple and easy to

manage account

• Subject to current credit guidelines

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

The Benefits of Refinancing

How it work:

Property Value in 2010 = RM400,0000 Property Value in 2016 = RM800,000 Amount Currently Owed = RM350,000 Refinance based on 80% CMV = RM640,000 Cash Out for Other Purposes = RM290,000 (RMRM640k – RM350k)

Golden Opportunity for Refinancing Market with AIA

• No restrictions
• n cash out

tenure

• Enjoy extra

positive cash flow

• Invest &

maximize in higher yield investments

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

16

Aver erage ge B BLR LR for

• r 33

33 y yea ears s : : 7.84 7.84% % Aver erage ge Len Lending ding Rate te for

• r 33

33 y yea ears s : : 8.71 8.71% AIA IA HO HOMEL ELOAN N AT T 4.99 4.99% %

ANALYSIS OF LENDING RATE (source: Bank Negara Website)

AIA FIXED AT 4.99%

11.51 6.72 10.33 8.24 6.83 11.51 10.33 6.45 6.99 8.70 12.80 12.25 6.41 4.92

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

17

EFFECTS OF BLR INCREASE

LOAN AMT MONTHLY INSTALMENT (30yr loan at BLR – 2.40%) ADDITIONAL INTERESTS (30yrs) INCREASE IN TENURE WHEN INSTALMENT REMAIN UNCHANGED 3.15% 4.2%

RM500k 2,149 2,446 (+297) 106,920

30 yrs to 40 yrs & 2 mths (additional RM262,178 in instalments)

RM1m 4,298 4,891 (+593) 213,480

30 yrs to 40 yrs & 3 mths (additional RM528,654 in instalments) EFFECTS OF BLR INCREASE FROM 5.55% TO 6.60% (Increase by 1.05%)

Disclaimer : Whilst every care has been taken in compiling this publication, AIA Bhd. and its officers are unable to accept any liability whatsoever for the accuracy of its contents or for the consequences of any reliance which may be placed upon the information contains.

An increase in 1.05% will extend your loan tenure by 10 yrs and 2 months! (when instalment is left unchanged) What if rates increase further?

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013 18

IMPACT ON RISING INTEREST BLR RM500,000 loan

BLR-2.40% p.a. 30 years loan

BLR : 5.55% BLR : 6.60% Interest Rate: 3.15% p.a. Interest Rate: 4.20% p.a. Instalment : RM2,148 Instalment : RM2,148 Interest : RM1,312 Interest : RM1,750 (+ 438 ) Principal : RM836 Principal : RM398 (-438 ) BLR : 7.10% Another increase by 0.50% Another increase by 0.50% Interest Rate: 4.70% p.a. Interest Rate: 5.20% p.a. Instalment : RM2,148 Instalment : RM2,148 Interest : RM1,959 (+647 ) Interest : RM2167 Principal : RM 189 (- 647 ) Principal : Instalment not sufficient to cover monthly interest Outstanding will keep on rising

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

03

Using A Simple Financial Calculator App

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

Note :- Effective 2 Jan 2015, the Base Rate will replace the Base Lending Rate (BLR) as the main reference rate for new retail floating rate loans. The BLR shown are only indicative values and may not reflect the BLR values of all banks. For more information on Base Rate, kindly refer to www.bnm.gov.my

Fact: Upon taking a fixed rate, you will no longer have to worry about rate fluctuations in the coming years.

How Do You Mitigate Future Rate Hikes?

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

How Rates Can Impact Your Financial Health

Series of Rate Hikes OPR increases in 2010 i) OPR was 2.00% in 2009 BLR: 5.55% ii) 0.25% hike in March 2010 to 2.25% BLR: 5.80% iii) 0.25% hike in May 2010 to 2.50% BLR: 6.05% iv) 0.25% hike in July 2010 to 2.75% BLR: 6.30% v) 0.25% hike in May 2011 to 3.00% BLR: 6.60% vi) 0.25% hike in May 2014 to 3.25% BLR: 6.85% Total hike is 1.30% continuously up since 2010 IS IS THI THIS S THE THE END OF R END OF RATE TE HIKE HIKES??? S???

Fact: Upon Upon taki taking ng a fix ixed rate, rate, you you wi will no no lon longer ger hav ave to to worry rry about

• ut BLR fluctuatio

uctuations ns for for the nex ext 35 35 yea ears rs.

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

Loan Calculator :

From your smart Phone, go App Store or Play Store Select Search : Search : Loan calculator

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

Loan Calculator :

Look for the above App. and Install. Open the calculator & select loan calculator.

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

Loan Calculator :

BLR => 5.55%. Interest rate : BLR – 2% Rate then => 3.55% Selet : “calculate”

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

Loan Calculator :

With this, Instalment amount RM2,260. Total Interest payable : RM313K.

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

Loan Calculator :

Today, BLR increased to 6.85% (BLR - 2%) rate increased to 4.85% Instalment supposed to increased to RM2,639. Interest rate increased… but instalment remain same meaning… Tenure will be extended… How many months do you think the extension will be…? But client mostly still pay same

• ld instalment of RM2,260 …..

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

Loan Calculator :

Your actual instalment RM2,260… Assume extension of 60 months still not sufficient as instalment only reduced to RM2,475.. Not enough..!!

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

Loan Calculator :

Your actual instalment RM2,260… Assume extension of 120 months still not sufficient as instalment only reduced to RM2,361.. Not enough..!!

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

Loan Calculator :

Your actual instalment RM2,260… Assume extension of 180 months still not sufficient as instalment only reduced to RM2,278.. Still Not enough..!!

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

Loan Calculator :

Your actual instalment RM2,260… The extension is 197 months for the instalment you are paying.. !! Meaning you have to pay extra 16½ years…!! From 30yr to 46½ years..!!

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

Loan Calculator :

The extension is 197 months for the instalment you are paying.. !! Meaning you have to pay extra 16½ years…!! From 30yr to 46½ years..!!

Nothing happened to you but the Bank earns a total interest of RM758K..!! Extra of RM445K.!!!

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

Loan Calculator :

Select “Amortization”; to see the loan statement illustration.

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

Loan Calculator :

At year 30 (360 month) where loan suppose to have settled, the loan still have an outstanding of 60% of original loan amount..!!

AIA confidential and proprietary information. Not for distribution.

Q & A :

Are U affected by this scenario..?

Show us Your loan statement & we will assist You to evaluate Your current position.

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

05

Underwriting Guidelines

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

Important Note

Please take note that the following guidelines is to be use a general

• reference. It will be change from time to time, at the discretion of

the Mortgage Division.

AIA confidential and proprietary information. Not for distribution. 37

HELPING YOUR CLIENTS- MORTGAGE ADVISE

3 P’s

1) Property

• Not in negative list, no auction properties, no land financing, not

in panel developers, no shop apartment, etc. 2) Payment to Income (PTI) / DSR All loan instalments + 5% outstanding Credit card Net Income (Income : a. Employee: Net Salary incl fixed allowance

• b. Biz owner: 2yrs net income from Borang B,

(pro-rated monthly) 3) Payment Track Record

• CCRIS, CTOS

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

Who Can Apply

Open to:

• Individual Malaysian Citizens or permanent residents working in Malaysia (Permanent Resident falls

under the sanctioned countries list is to be excluded).

• Foreigners residing and employed in Malaysia for a period of time with valid working permit in multi-
• national. companies or registered business in Malaysia for at least 3 years or are with Malaysian

spouses as co-applicant. Foreigners must not be from sanctioned countries/countries with deficiencies in AML/CFT/OFAC listing. Foreigners under Malaysia My Second Home (MM2H) program are to be excluded.

• For co-applicants it must be from immediate family such as siblings, parents, spouses, children.
• We do not accept guarantors only joint applicants
• Malaysian working oversea with documentation in foreign language will need to get all documents

translated into English.

Terms & Conditions (Applicant Profile)

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

Terms & Conditions (Location)

Completed – Landed*

• Klang Valley (KL, Putrajaya),
• Selangor ( incl. Kajang, Klang

Town, Semenyih, Cyberjaya)

• Penang, Seberang Prai, Parit

Buntar, Sg Petani & Kulim

• Johor Bahru, Batu Pahat, & Muar
• Ipoh, Kampar & Taiping
• Seremban
• Melaka Town (including Ayer

Keroh)

• Kuantan
• Kuching
• Kota Kinabalu

Completed - Non Landed*

• Klang Valley (KL, Putrajaya)
• Selangor (incl. Kajang, Klang Town,

Semenyih, Cyberjaya)

• Ipoh
• Melaka Town
• Johor Bahru
• Penang
• Kuantan
• Kota Kinabalu
• Kuching

With Permanent Certificate of Completion & Compliance (CCC) Under Construction Properties Available within AIA’s approved list of panel of developers and projects

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

• Residential landed & non landed properties only
• Bumiputra Lots is accepted within the following condition:
• RM500,000 minimum current market value
• For Klang Valley, Johor Bahru and Penang only
• For service apartments, although under commercial use it must be in the ambit of

Housing Developers Act (Schedule H).

• Leasehold titles are accepted subject to remaining / unexpired lease must be at

least 30 years upon maturity of the loan (for Peninsular Malaysia and Sabah only). For Kuching, must be at least 15 years upon maturity of the loan tenure and according to Bank Negara Guideline, upon application date, the remaining lease must have at least 21 years.

Terms & Conditions (Location)

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

Excluding :

• Residential

properties located at landslip/flood prone area/ Oxidation pond/power station, high tension wires, major highways, T-junction, near graveyard or any negative factors that would affect the value of the property. Status of land such as native land, Malay Reserve Land, agriculture, industrial, forest reserve, land with restriction to transfer to non bumi or non-Malay are excluded.

• Residential properties under non preferred location listing.

Please refer to ALPP website listing.

• This includes offices, shop apartments, semi-permanent, wooden houses or to

finance the construction of an individual property. Currently SOHO, SOVO, SOFO are excluded. Low cost properties are excluded.

Terms & Conditions (Location)

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

Others :-

• Residential landed & non landed properties only
• For service apartments, although under commercial use it must be in the ambit of

Housing Developers Act (Schedule H).

• Leasehold titles are accepted subject to remaining / unexpired lease must be at least

30 years upon maturity of the loan (for Peninsular Malaysia and Sabah only). For Kuching, must be at least 15 years upon maturity of the loan tenure and according to Bank Negara Guideline, upon application date, the remaining lease must have at least 21 years.

Terms & Conditions (Location)

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

Terms & Conditions

Loan Details :-

• Minimum Property Value:

RM200,000

• Minimum Marketability Factor:

6

• Minimum Loan Amount:

RM100,000

• Maximum Loan Amount:

RM3,000,000 per case (Maximum loan exposure including residential and non residential properties per borrower with AIA Bhd. is RM5mil)

Loan Tenure

• Up to 35 years or age 70, whichever is earlier. Minimum tenure is 5 years
• Minimum age is 18.
• For joint applicants, the elder age of the applicants who are contributing to the repayment of

the loan will be used to determine the loan tenure. Maximum age is capped at 70 years old based on elder age. However, for joint applicants with one generation gap (i.e. parent & children), the maximum age which can be considered is up to 75 years old based on the elder age.

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

Loan Margin (Loan To Value / LTV) Purpose LTV / Margin Purchase from Developer Up to 90% Purchase from Subsale Up to 90% (Open Market Value or Purchase Price, whichever is lower) Refinance Up to 80% (Open Market Value with or without cashout) Investment Up to 80% Foreigners Up to 70% 3rd Housing Loan Up to 70%

• Open Market Value (OMV) will be at the discretion of management and shall be based on the

valuation report prepared by AIA panel of valuers.

• At least 2 valuers are needed to confirmed on market value.
• Subject to income & other eligibility.
• Exceptions can be considered on a case by case basis at the discretion of management.

Terms & Conditions

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

Debt Service Ratio (DSR) Employees :- Total loan instalments(Car, housing loan, personal loans, 5% credit card outstanding/limit +AIA new instalment) Net salary (Gross salary less Tax, EPF & Socso) Self Employed :- Total loan instalments(Car, housing loan, personal loans, 5% credit card outstanding/limit +AIA new instalment) Total 2 years declared Income less Tax divided by 24 months

Terms & Conditions

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

Notes:

• Even though cash from the new loan is to be used to settle the credit cards,these existing

credit cards commitments will be taken into account in the computation of DSR. (Borrowers with high personal loans, credit card outstanding and debts are considered high risk). 5% Credit Card outstanding will be taken into consideration.

• Outstanding credit card should not exceed 3 times of their total gross income unless proof

can be given outstanding is promptly settled in full consistently.

• Instalment will be taken if loan is under personal name regardless whether company or

family member is paying for the loan.

• 50% of loan instalment commitment (for loan with 2 joint borrowers) OR Percentage in

line with numbers of borrowers, on DSR calculation, subject to documentary evidence (i.e. bank’s letter of offer).

Terms & Conditions

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

Guideline for Debt Service Ratio (DSR - based on net income)*

Net Income DSR

More than RM10k 75% >RM8k to RM10K 70% > RM5k to RM8k 65% > RM3k to RM5k 50% Less than RM3k 30%

The percentage quoted only serves as a guideline and variations to it will be applicable to customer's profile and management’s discretion. * Subject to a minimum of RM1k for living expenses.

Terms & Conditions

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

Salary Earners / Employed

Income - Calculation

Type of Income Based on monthly average Basic Salary 100% of net salary Fixed Allowance 100% Annual Contractual Bonus 100% Non Contractual Bonus 70% of average of 2 years bonus Rental 70% with tenancy agreement and 3-6 months bank statement to show the crediting of rental income. Tenants must be 3rd party and not from own company/business,relatives. Commission/Incentive 50% if provide 6 to 12 months evidence (Taking out high & low – Showing Consistency, after Tax & EPF) Non Fixed Allowance (i.e.

• vertime)

50% if provide 6 to 12 months evidence (Taking out high & low – Showing Consistency, after Tax & EPF)

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

Documents Required (Employed)

* Incomplete documents may cause delay in loan processing. Employees/Self employed:

• IC or passport of all the borrowers

Employees Income Evidence:

• Current account or savings account to show salary credit pay in for the last 6-12

months

• Last 3 months pay slips (If commissioned last 6-12 months payslips)
• Latest 12 months EPF statement. Salary credited must be consistent with the EPF

statement.

• Employment letter if there is contractual bonus and those employed 6 months or less.
• Rental income must be accompanied with valid tenancy agreement with 3-6 months

proof of credit of rent.

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

Documents Required (Employed)

For Employees

• Working in the workplace for at least 6 months preferably in an established

company/business. The employer preferably has been operating for at least 3 years with proper office or business set up unless it is a holding company. (Business/industry must not be in the list of non-target segment).

• Salary paid must have proper documentation and must be credited in the account

for at least 3-6 months supported by latest 1 year EPF statement and/or latest income tax Form B.

• Salary paid in cash or salary without EPF, Socso, tax or from an unregistered or

unlicensed company is not recognized.

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

Documents Required (Self-Employed)

Self employed Income Evidence :

• IC or passport of all the borrowers.
• Last 2 years Form B with official tax receipts. Otherwise, bank account statement

has to be furnished to show the cheque has been cleared if the payment is by cheque.

• 6-12 months business current account bank statement.
• 2 years audited financial statements, if applicable.

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

Documents Required (Self-Employed)

For Self Employed

• The business must be licensed, active, established for at least 3 years and operating

profitability for the past 3 years with declared business income & established office and business operation.

• Business/Industry must not be in the list of non-target segment.
• Evidence of operations such as business current account for at least 6-12 months,

financial statements and 2 years declared individual income tax will be used to compute the debt service ratio (DSR).

• Employees holding more than 33% of shareholdings are considered self

employed.

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

Documents Required - Others

Other supporting income:

• Fixed deposits, Central Deposit Shares (CDS) statement, other property titles etc.

Debts:

• Letter of offer/loan statement to show their actual instalments(otherwise

assumptions will be taken to compute the instalment).

• Credit Bureau Statement /Report for Singaporeans/PR or any form of Credit

Report for foreigners. Property:

• Sales form or Sales & Purchase agreement and a copy of individual title or

master title.

Notes:

• Due to the common occurrence of fraudulent documents, agents to verify and validate the

documents to ensure they are genuine with the source when they visit the clients or their business premises.

• Photos can be taken to validate the internal and external business premise, if applicable.
• Photos can be taken on the renovation of the houses for AIA to forward to valuers to ensure a

more accurate verbal indication.

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

Documents Required – Borrower working in Singapore/ Singaporean

• IC / PR identification / work permit / Passport
• Credit Bureau Singapore report (CBS)

except for monthly income < SGD 3,300 or annual income < SGD 40,000

• Latest 3-6 months salary slip.
• Latest 12 months CPF statement.
• Latest 3-6 months salary crediting account statement.
• Supporting documents: Latest tax assessment/ EA form/ employment letter etc.

Note: Additional documents may be required by underwriters if deemed necessary

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

OTHER TERMS & CONDITIONS

Other income

• Rental income can be considered up to maximum of 70% provided it has a valid

tenancy agreement with at least 3-6 months credited into the account.

• Tenants must be third party and not from own company/business/relatives.
• Investment and rental income should preferably not take up more than 33% of the

total primary income to service the loan due to the cyclical nature of the income.

• Contractual bonus can be taken into consideration to be divided over 12 months.
• Commissions can be included provided it is consistently paid and is part of their

employment: 50% of their average 6-12 months credit (less out the high & low) after tax and EPF.

• Overtime, variable allowances, variable bonuses or undocumented income may not

be computed as income depending on the nature of the job and consistency.

AIA confidential and proprietary information. Not for distribution.

Rev01 dated 01/09/2013

OTHER TERMS & CONDITIONS

Track record – all loans must be promptly paid. No outstanding litigation/legal action against clients. A prepayment penalty and other additional charges will be imposed when the loan is refinance out from AIA to other financial institution within the first 5 years from the date of 1st drawdown. Zero Moving Cost refers to the legal fees, stamp duty, disbursement and valuation for the loan agreement only. Life policy and / or Mortgage Reducing Term Assurance (MRTA) are required. A houseowner insurance policy on the property to be charged is required. For non landed properties, a certified true copy of the master policy with AIA Bhd endorsed as a mortgagee/chargee must be forwarded to AIA on a yearly basis. Valuation reports & loan documentation to be handled by AIA’s panel valuers & solicitors.

AIA confidential and proprietary information. Not for distribution. 57

FEES STRUCTURE – LEGAL FEES

Sale & Purchase Agreement % Loan Agreement % First 150K 1 First 150K 1 Subsequent up to 1M 0.7 Subsequent up to 1M 0.7 Subsequent up to 3M 0.6 Subsequent up to 3M 0.6 Subsequent up to 5M 0.5 Subsequent up to 5M 0.5 Subsequent up to 7.5M 0.4 Subsequent up to 7.5M 0.4 Stamp Duty % Stamp Duty % First 100k 1 Loan Amount 0.5 Subsequent up to 500K 2 Subsequent onwards 3

Valuation Fee : 0.25% on value + RM100 For refinancing cases to add the followings: Discharge : RM600

AIA confidential and proprietary information. Not for distribution.

Thank you!