Revision In Mortgage Policies

Please be informed that effective June 2011, certain banks reviewed and revised the following policies. The pricing & policy are subject to change and is only for your guideline only:

	1.               Global Debt Burden Ratio (GDBR) The repayment capability of borrower(s), Global Debt Burden Ratio (GDBR) is revised as follows:- Terms Description Global Debt Burden Ratio (GDBR) Total monthly installments for all existing loans under PFS division including current application plus commitment reflected in CCRIS should not exceed 70% of monthly gross income and to be reduced to 65% with effect from 1st December 2011. Minimum Disposal Income The management has introduced a Minimum Disposal Income Criteria whereby the minimum disposal income after deduction of statutory deductions and all other financial commitments should not be less than RM750 per month. GDBR may be increased for customers with strong profile and proven repayment record as follows : GDBR Maximum LTV / FTV  > 70% to 100% Applicable for professionals, established businessman and existing to bank customers with proven repayment record and/or maintains healthy AUM / net worth. 80% (Subject to BNM > 2 existing housing loans/facilities guidelines and investors guidelines) > 100% to 150% Applicable for established businessman ie sole-proprietors, partners and directors of companies. 70% Any deviation from the above will be tracked as an exception and is subjected to portfolio capping as stated below. 2.Rental Income Other Income Sources Description  Rental Income 80% of rental proceeds supported by copy of valid rental agreement or any other documentary evidence eg rental receipts together with a copy of the title/SPA to reflect ownership of the property or proof of payments credited etc. In the absence of any documentary evidence, rental proceeds will be based on 50% of the estimated rental yield of 5% per annum on each property facility / limit reflected in CCRIS with vintage > 3 years. 3. Maximum Loan/Facility Tenure The maximum loan/facility tenure is revised as below:- Property Category Maximum loan/facility tenure Residential Up to 30 years or maximum 65 years of age, whichever is earlier. Non-residential Up to 20 years or maximum 65 years of age, whichever is earlier. For applications where borrower(s) are of age 60 or above, the loan LTV/FTV remained at 60%. 4.Financing of MRTA / MRTT and FLV The maximum financing of MRTA/MRTT and FLV is revised as below:- Number of Property(ies) Maximum financing of MRTA / MRTT and FLV 1st property facility Residential property 90%+5% (MRTA/MRTT/FLV) of SPA/OMV whichever is lower Non-residential property 80%+ 5% (MRTA/MRTT/FLV)  of SPA/OMV whichever is lower > 2nd property facility Residential property Up to maximum 90% (including MRTA/MRTT/FLV ) of SPA/OMV whichever is lower Non-residential property Up to maximum 85% (including MRTA/MRTT/FLV) of  SPA/OMV whichever is lower Subject to maximum 5% of  MRTA/MRTT/FLV financing 5.Investor Guidelines The definition of Investor is revised as below:- Borrower Property loans in CCRIS (Collateral Type 10), including loan(s) with HLBB/HLISB   Salaried Individuals With >2 property loans (HLFNNPS / OTLNFNCE) Self-employed Individuals (sole proprietors, partners, or directors of a company who are also the shareholders)  With >3property loans (HLFNNPS / OTLNFNCE) Operating & Investment Holding Companies With >3property loans (HLFNNPS / OTLNFNCE)       The maximum Loan / Facility -To-Value (LTV/ FTV) for investors is revised as follow:-   Property Type Maximum LTV / FTV Residential (Purchase / Refinancing with or without cash out) 80% (Subject to BNM > 2 existing housing loans/financing guidelines) Non-Residential (Purchase / Refinancing with or without cash out) 70% Investors with high net worth may be allowed LTV beyond the stipulated guidelines. 6.Portfolio Capping  Definition Capping Limit Loan/Facility to value (LTV/FTV) Residential property LTV/FTV > 90% cap at 25% per annum of total approved residential property accounts. Non-residential property LTV/FTV > 85% cap at 10% per annum of total approved non-residential accounts. Excluding priority sector and all Government initiated programs eg SJKP, SRP etc) Global Debt Burden Ratio (GDBR) To cap at 25% per annum of total accounts approved Critical Exceptions Critical exceptions are defined as deviation from Major Credit Policy as follows ·     Repayment behavior ·     Failed Credit Checking ·     Customer Segmentation III (High risk segment) ·     Maximum loan/facility tenure and age upon maturity To cap at 10% based on number of accounts approved.