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PRODUCT DISCLOSURE SHEET (Read this Product Disclosure Sheet before you decide to take out the Baiti

Home Financing-i. 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) 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 Bai Bithaman Ajil (BBA). BBA refers to the sell and buy contract on a specific asset with deferred payment basis by way of monthly instalments for an agreed payment period between you and the Bank. Under this contract, the Banks Sale Price on the asset financed is including the Banks profit amount.
Developer / Vendor

Bank Islam Malaysia Berhad Baiti Home Financing-i Date : _______________ (dd/mm/yy)

1 2
You

1. 2.

3.

4.

You purchase the property from the developer/vendor by executing the Sale & Purchase Agreement. At this juncture, the ownership of the property passes to you. You enter into a sale transaction with the Bank and the Bank will purchase the property through the execution of the Property Purchase Agreement. The Bank will pay the developer/vendor for the purchase price on cash basis. The Bank sells the property to you by executing the Property Sale Transaction based on the Banks Sale Price which consists of the financing amount and Banks profit. The property will be charged to the Bank to secure the payment for the financing under this Facility. You pay the Bank for the Sale Price on a deferred payment basis by way of monthly instalments within an agreed period.

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3.

What do I get from this product? Total financing amount : RM____________ (___________% against the purchase price or Open Market Value, whichever is lower) Base Financing Rate (BFR) : ________% Profit Rate : BFR - ________%

Tenure : ________ years 4.


What are my obligations?

Effective Profit Rate : _________%

Your monthly instalment is RM_____________ Total payment amount at the end of _______ years is RM_____________

Important: Your monthly instalment and total payment amount will vary if the BFR changes. Profit Rate Monthly Instalment Total profit cost at the end of _______ years Total payment amount at the end of _______ years Today (BFR = ______%) RM___________ RM___________ If BFR goes up 1% RM___________ RM___________ If BFR goes up 2% RM___________ RM___________

RM___________

RM___________

RM___________

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.

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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

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What if I fail to fulfil my obligations? You are to pay to the Bank all costs pertaining to the solicitors 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; 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); 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.

b.

c.

PROVIDED ALWAYS that the above said tawidh (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.

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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 (compulsory) Long Term Houseowner Takaful (if applicable)

Note : Quotations will be provided by the Bank for MRTT / Takaful offered by the Banks 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 Banks 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 17th Floor, Menara Bank Islam No. 22 Jalan Perak 50450 Kuala Lumpur Tel : 03-26900900 Fax : 03-27821352 E-mail : contactcenter@bankislam.com.my 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

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If you wish to complaint on the products or services provided by us, you may contact us at : Contact Centre 17th 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 Wahdah Home Refinancing-i IMPORTANT NOTE : YOUR HOUSE MAY BE FORECLOSED IF YOU DO NOT KEEP UP PAYING ON YOUR HOME FINANCING

The information provided in this disclosure sheet is valid as at _____________ (dd/mm/yy) or until _____________ (dd/mm/yy) Note : 1. 2. 3. The above is for illustration purposes only. Profit and charges may vary and subject to the Banks terms and conditions. The above information provided in this disclosure sheet is valid as at date hereof. The BFR shown in this disclosure sheet is subject to changes.

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