AmBank Islamic - Different Types of Home Financing

As a home buyer, it is important to understand the different types of home financing. It will help you decide which one best suits your needs.

AmBank offers various home finance solutions to suit your specific home purchase requirements. Learn more about the home financing options available for you by using our online loan calculator.

Term Loan

A term loan is one of the most convenient financing options to opt for as it comes with a fixed amount, interest rates, and EMIs. It is available as both a secured and an unsecured form of credit. It can be used for a variety of purposes such as purchasing property, home improvement, business expansion and more.

While the term loan is a great option for anyone looking to purchase a new house, it’s important to choose the right type of loan. The best way to do this is to find a bank that offers affordable home loans, has a good reputation, and offers terms that suit your personal budget.

You should also be aware of the lock-in period, as it is important to know when you can get out of your home loan early if you’re facing a financial crisis. This is so that you can pay off your home loan earlier, and avoid penalties.

The other way to reduce your home loan interest is by making advance payments on the EMIs, so that you can pay off the whole amount faster. However, this is only available if the lender allows it.

In Malaysia, banks offer several different types of home loans. This includes term loans, semi-flexi loans and flexi loans. Choosing the best home loan for your needs can be tricky as different banks have different features and interest rates, so you need to do your homework before selecting a bank.

Generally, term loans are considered the best for home buyers because they have a relatively longer repayment tenure than flexi and semi-flexi mortgages. This can make it easier for you to manage your monthly instalments and keep up with the repayments.

Another benefit of term loans is the ability to link them with your current account, which can help you save on interest costs. This is because you can deposit extra funds in your current account to lower your interest payments.

If you’re not sure which loan is the right bridging loans fit for you, a home finance officer at AmBank can provide you with more information and help you make the best decision. They can even assist you with your home loan application.

Semi-Flexi

Semi-Flexi home loans are available through most banks in Malaysia, allowing you to pay extra cash into your loan amount – without having to stick to a rigid and unchanging payment schedule. These loans are usually a good option for borrowers with spare cash in the bank, as they can save on home loan interest and be more flexible in their repayments.

You should be aware that some semi-flexi loans do have a penalty clause for paying off your loan earlier than the agreed term, and you should check these out with your bank before making any plans. Regardless, these types of home loans are often more flexible than basic term loans, so it’s worth checking out the options that are available to you and your family.

One of the most popular home financing ambank products is the Flexi Housing Loan. This product combines a current account with a home loan to make it easier for you to budget your payments. The main benefit of this type of home loan is that you can withdraw or make advance loan payments without having to give any notices to your bank.

Moreover, any money you add to your current account automatically goes into reducing your home loan interest rate. However, you will be charged a monthly fee of around RM 5 or 10 for this service.

The Semi-Flexi home loan is one of the most versatile types of home loans you can find, as it enables you to make advanced payments on your property loan amount, which reduces your interest rates and your overall property loan. This is especially helpful if you have a significant income rise or are saving money for future expenses.

This type of home loan is not available at all banks in Malaysia, so you will need to shop around for the best deal. You can also opt for a non-flexi loan if you do not want to pay additional fees or interest on your loan amount.

The full-flexi home loan, on the other hand, offers customers versatility, over and above the semi-flexi home loans. This product allows you to make advance payments or withdraw excess sums from your current home loan, WITHOUT having to give any notices to the bank.

HomeLink

HomeLink enables you to link your home loan account with your current account for greater interest savings. It also integrates your current account with a monthly consolidated statement, making it easy to monitor and manage your money.

Whenever you have access to extra cash, you can deposit it in your linked current account which will off-set the outstanding balance against your loan and help reduce your overall home loan principal. This can save you a considerable amount of interest against a withdrawal fee and will help you shorten the term of your loan.

The AmBank Islamic HomeLink-i is a semi-flexi home loan which allows you to start contributing extra repayments at anytime through your linked current-account-i. This enables you to lower the minimum monthly repayment and will gradually shorten the tenure of your home loan, as long as you continue to contribute extra towards your mortgage balance.

HomeLink is available through AmBank and has an established track record for innovation, customer focus and service excellence. It remains the industry standard for vehicle-to-home automation, with an ever-growing list of compatible partners and products. It’s a smarter, safer way to control your garage door opener and gate system, security system, lighting, appliances and electronics from the comfort of your car.

Home/ Property Financing-i

AmBank Islamic offers home financing in the form of a semi-flexi mortgage that lets you start contributing extra cash whenever you have access to it. This can help you reduce the interest rate and principal amount on your loan and shorten the term of your mortgage. It's also a good way to plan for the future.

This home loan from AmBank is a good choice for buyers with a modest income who want to own their own house in the near future. It's a Shariah compliant loan with fixed monthly payments and an interest cap, and is the perfect choice for those who can't afford to borrow more than 90% of the property's market value. This home loan from AmBank also features a free mortgage calculator to help you work out the cost of your new home. You can also opt to link your current account with your AmBank home loan and enjoy preferential interest rates. AmBank also offers insurance for your home and its occupants. The best way to find out which insurance product is right for you is to talk to your local AmBank representative.