AIA & ING – The No Lock Penalty - How does it differ from banks?

There are significant differences between the fixed rate packages which offered by the banks and insurance institutions. One of the major concerns over the features which offered by the insurance companies, is there will be no penalty to be imposed if the loan is being settled by cash or sales of property within the lock-in period (except refinancing) and they offer for both under-con & completed properties as well. For banks, no-lock-in feature is subjected to their discretions (and normally they won't grant it unless you are willing to accept a higher-than-market interest rate) and common practice is that the fixed rate packages won't offer to any under-con properties (including Islamic fixed rate packages). Fixed rate packages from insurance companies are indeed a good choice if our clients are: 
(i) high risk aversion, and plan to settle the loan without any intention to refinance the property in future; OR 
(ii) investors, particularly for those who purchase under-con properties and intend to sell them off without any penalty to be imposed and certainty of profitability being insured.

AIA and ING offer fixed rate mortgages to the public, ING did provide a promotional rate which can goes to 4.85% p.a. while AIA can goes to 4.99% (however, ING with relatively more T&Cs) Whereby, both institutions do stated that getting a home insurance from them is compulsory if you intend to get a loan from them. And, one of the interesting facts is that, insurance companies prefer smaller amount of loan instead of greater loan size which is totally different from the banks. (Most of the time, banks prefer you to borrow more but they are not).

You can find out more from the links below:

AIA fixed rate packages - FAQs
AIA fixed rate packages - T&C
Hotline contact: 03-2056 3333

ING fixed rate packages - FAQs
ING fixed rate brochures
ING NZEC & ZEC packages
Hotline contact: 1800-88-0303

Please bear in mind that the lowest rate that stated or shown in any advertisement is only the lowest rate that ever being proposed. However, the effective rate that applicable to each individuals is subjected to requirements and conditions that must be fulfilled by applicants. If you do need help in getting a fixed rate loan in regardless of purpose, you can always go for our consultants for assistance and we would be please to help out.

Points to add for insurance companies's fixed rate packages:

(i) Only for PRIME residential areas, i.e. Klang Valley, Penang.
(ii) Margin of finance depends on kinds of property. Non-landed and without individual titles will put you in disadvantage.