With effect from 5 November 2010 (Friday), the following rules will apply for loan submissions:

1. Definition of 3rd HL – Borrower has more than 2 Housing Loans (HL) in the Credit reference record.  Term Loans (TL) are not considered.

2. Application of Margin of Finance MOF for joint borrowers:

• Existing Housing Loan in credit reference Apply new loan  MOF

• Borrower A  = 1
• Borrower B  = 2
• Borrower = A + B
• New Loan = 3rd Housing Loan  70%

Borrower = A

New Loan = 2nd Housing Loan

As per prescribed MOF

Borrower = B

New Loan = 3rd Housing Loan 70%

3. Refinancing & Full Settlement

Example:  HL (A) = RM588k
HL (B) = RM250K

Scenario 1: Refinancing
•       New Loan to refinance HL(A)) = RM600K, this application will be considered as the 2nd loan

Scenario 2: Full settlement
•       New Loan to finance a new Property but borrower has sold off the property under HL(A)
•       New Loan will be considered as a 2nd loan
•       Condition : Creator to provide proof of sale – Sales & Purchase Agreement OR down-payment of sold property

4.      If the HL in Credit reference has an O/S balance of ‘0’ but the limit is still available (meaning the HL has not been closed), this account will be treated as 1 HL, unless customer has proof of account closure from their financier.  Approval for such cases will be granted under deviation.