1. AIA confidential and proprietary information. Not for distribution. AIA.COM AIA Home Loan Training

2. AIA confidential and proprietary information. Not for distribution. Latest Packages Package 1: 4.85%p.a. FIXED The Lowest Long Term Fixed Rate In The Market Since 2010, the BLR has increased 4 times and gone up by a total of 1.05%p.a How many times has your instalments increase in this period? A 1% increase in BLR could increase your loan instalment by 11%? Your loan tenure could be extended by a further 10 years if your instalment remains the same ~ for a loan of M500k & 30 years tenure. Average lending rates (as compiled by BNM) 10 years = 5.71% 15 years = 6.61% 20 years = 7.36% 30 years = 8.42%

3. AIA confidential and proprietary information. Not for distribution. Latest Packages Package 2: 5.25%p.a. FIXED With Zero Moving Cost Features Lesser the burden of refinancing and enjoy instant savings on your monthly instalments. Switch your loan to AIA without paying for any legal fees, stamp duty, disbursement and valuation fees for the loan documentations. Example: Loan: RM500,000 Legal Fees: RM3950 Stamp Duty: RM2500 Disbursement : RM1200 (approx) Valuation : RM900 (approx) Total: RM 8550 (approx 2% of the loan amount)

4. AIA confidential and proprietary information. Not for distribution. Latest Packages Package 3: 4.25%p.a (2 years), 4.99% (Thereafter) Lower Rates + Peace of Mind “Forecasting the overnight policy rate to be hiked by 25 basis points”. The Sun Biz – 8 th January 2013 Standard Chartered Regional Research for Southeast Asia “Raise its overnight policy rate (OPR) by 25 basis points in the second quarter and by 50 basis points in the second half of the year” The Edge Financial Daily – 11 th January 2013 HSBC Chief Economist for India & Asean No early termination fee if settlement the loan is via sale of property and own savings for all 3 packages Get the best of BOTH! Effectively BLR-2.35%p.a for 2 years PLUS be protected for further fluctuations for the entire tenure!

5. AIA confidential and proprietary information. Not for distribution. No Such Thing as a “Fixed” BLR Package Read the fine print. For a typical BLR – 2.4% loan, both the BLR and the minus 2.4% is subject to change at the simple discretion of the Bank. Watch out for terms & conditions such as: The spread/margin (the “-2.40%) is subject to change Additional clause added to the Agreement 3 years after signing the initial Offer Letter ~ Should you have One (1) month outstanding arrears, we shall revise the interest rate to 0.50%p.a. above the prevailing prescribed rate of your facility. BENEFITS OF AIA HOME LOANS

6. AIA confidential and proprietary information. Not for distribution. 5 Article – Points To Consider When Buying A House To Avoid Future Complications Clauses in the loan agreements give the lenders the absolute rights to alter both the Base Lending Rate (BLR) and/or the margin of interests (the minus X%). One cannot make a special low interest offer in the sales campaign and then contractually (through the loan agreement) creates a clause to allow that special offer interest rate to be invalidated. Chang Kim Loong, secretary-general of The National House Buyers Association (The Star Biz, 25 August 2012)

7. AIA confidential and proprietary information. Not for distribution. Flexibility Calculated at daily interest Interests is based on principal outstanding. The more, the often you pay, the greater the savings Pay at any AIA branches, MayBank branches and online via www.maybank2u.com.my No locked-in period when you pay off, sell off BENEFITS OF AIA HOME LOANS Real Capital Gains As the value of your property appreciate over time, fixed the cost of interest payable over time as well to maximize your net capital gains. InstalmentRental Market Value 2013RM1500 RM400,000 2018RM1500RM3000RM600,000 2023RM1500RM4500RM800,000

8. AIA confidential and proprietary information. Not for distribution. AIA HOME LOANS RELATED ARTICLES

9. AIA confidential and proprietary information. Not for distribution. Prediction By Bank “ SCB maintaining its forecast that Bank Negara will increase the overnight borrowing rate (OPR) to 3.25% in November”. Source : The Star Biz, 18 th July 2013

10. AIA confidential and proprietary information. Not for distribution. How Rates Can Impact Your Financial Health Series of Rate Hikes OPR increases in 2010 i)OPR was 2.00% in 2009BLR: 5.55% ii)0.25% hike in March 2010 to 2.25% BLR: 5.80% iii)0.25% hike in May 2010 to 2.50% BLR: 6.05% iv)0.25% hike in July 2010 to 2.75% BLR: 6.30% v)0.25% hike in May 2011 to 3.00% BLR: 6.60% Total hike is 1.05% UP since 2010 vi) 0.25% hike in Nov 2013 (?) to 3.25%BLR: 6.90% (?) IS THIS THE END OF RATE HIKES??? Fact: Upon taking a fixed rate, you will no longer have to worry about BLR fluctuations for the next 40 years.

11. AIA confidential and proprietary information. Not for distribution. 10 In The News “The higher the loan amount, the higher the quantum of increase” “Borrowers are concern of what they can do to protect themselves” “If you cannot handle the extra payment, if tenure is longer than ten years, convert yours to fixed rates” “Why? (1) Be protected from rate rises (2) avoid much pain (3) be able to make payment on a regular basis (4) be able to keep the house (5) sleep better at night Most important point: It is a worthwhile sacrifice that I’ve done myself

12. AIA confidential and proprietary information. Not for distribution. 11 HISTORICAL BLR & AVERAGE LENDING RATES IN MALAYSIA Source: BNM Website 19957.448.73 19968.899.94 19979.5310.62 199810.6112.13 19997.298.56 20006.777.67 20016.667.13 20026.396.61 20036.136.30 20045.996.05 20056.005.95 20066.616.49 20076.726.41 20086.706.08 20095.625.08 20106.025.00 20116.454.92 20126.534.79 YEAR BASE LENDING RATE AVERAGE LENDING RATE 19807.7510.13 19818.5011.89 19828.5012.40 198311.0211.78 198411.3512.21 198511.5412.55 198610.6912.23 19878.1910.36 19887.259.30 19897.008.90 19907.168.79 19918.029.35 19929.2210.16 19938.8510.03 19947.298.76

13. AIA confidential and proprietary information. Not for distribution. 12 Average BLR for 33 years : 7.84% Average Lending Rate for 33 years : 8.71% AIA HOMELOAN AT 4.85% ANALYSIS OF LENDING RATE (source: Bank Negara Website) AIA FIXED AT 4.85% 11.51 6.72 10.33 8.24 6.83 11.51 10.33 6.45 6.99 8.70 12.80 12.25 6.41 4.92

14. AIA confidential and proprietary information. Not for distribution. 13 HISTORICAL BLR & AVERAGE LENDING RATES IN MALAYSIA AVERAGE LENDING RATES Over last 5 years= 5.17% Over last 10 years= 5.71% Over last 15 years= 6.61% Over last 20 years= 7.36% Over last 30 years = 8.42% Source : BNM Website

15. AIA confidential and proprietary information. Not for distribution. 14 EFFECTS OF BLR INCREASE LOAN AMTMONTHLY INSTALMENT (30yr loan at BLR – 2.40%) ADDITIONAL INTERESTS (30yrs) INCREASE IN TENURE WHEN INSTALMENT REMAIN UNCHANGED 3.15%4.2% RM500k2,1492,446 (+297) 106,920 30 yrs to 40 yrs & 2 mths (additional RM262,178 in instalments) RM1m4,2984,891 (+593) 213,480 30 yrs to 40 yrs & 3 mths (additional RM528,654 in instalments) EFFECTS OF BLR INCREASE FROM 5.55% TO 6.60% (Increase by 1.05%) Disclaimer : Whilst every care has been taken in compiling this publication, AIA Bhd. and its officers are unable to accept any liability whatsoever for the accuracy of its contents or for the consequences of any reliance which may be placed upon the information contains. An increase in 1.05% will extend your loan tenure by 10 yrs and 2 months! (when instalment is left unchanged) What if rates increase further?

16. AIA confidential and proprietary information. Not for distribution. 15 AIA MORTGAGE Terms & Conditions

17. AIA confidential and proprietary information. Not for distribution. 16 TERMS & CONDITIONS Who Can Apply Open to: i. Malaysians & Permanent Residents ii. Singaporeans & Bruneian Nationals iii. Foreigners with a valid work permit / registered business in Malaysia / married with Malaysian spouse iv. Participants of Malaysia My Second Home Program (documentary evidence / approval from Malaysia Government under the MM2H program ~ prior to loan disbursement) – applicable for those under employment with multi-national companies only.

18. AIA confidential and proprietary information. Not for distribution. Location - Completed Properties 17 Landed Klang Valley Penang, Seberang Prai, Parit Buntar, Sg Petani & Kulim Johor Bahru, Batu Pahat, & Muar Ipoh, Kampar & Taiping Seremban Melaka Kuantan Kuching Kota Kinabalu Non- Landed Klang Valley Ipoh Melaka Johor Bahru Penang Kuantan Kota Kinabalu Kuching With Permanent Certificate of Completion & Compliance (CCC) Excluding - residential properties located at landslip/flood prone area/ oxidation pond/power station, T-junction, auction properties, negative factors and within negative list Under construction properties - available within AIA’s approved list of panel of developers and projects

19. AIA confidential and proprietary information. Not for distribution. Landed & Properties Minimum Property Value: RM2000,000 Minimum Marketability Factor:6 Non-Landed Properties Minimum Property Value:RM200,000 Minimum Marketability Factor:6 Minimum Features:24 hour Security & Guarded Minimum Loan Amount:RM100,000 Completed service apartments could be consider. Leasehold titles are accepted subject to remaining / unexpired lease of at least 20 years upon maturity. For East Malaysia, this could be at least 15 years. Location - Completed Properties

20. AIA confidential and proprietary information. Not for distribution. Loan Tenure Up to 35 years or age 70, whichever is earlier Minimum age is 18. For applicants age 23 and below, an older co-applicant is required Minimum loan tenor is 5 years. Borrower’s age is based on the age as of the current year. Applicants can only be deemed to be contributing to the repayment of the loan if they are employed or self employed with evidence of earning capability. If the younger applicant’s income is sufficient to support the case, loan tenure can be solely based on the younger age. 19

21. AIA confidential and proprietary information. Not for distribution. Loan Tenure For joint applicants, the average age of the applicants who are contributing to the repayment of the loan will be used to determine the loan tenure. Example is as follows: Borrower 1 = age 25, income 5,000 (max age for income earning 70) 70 – 25 = 45 Borrower 2 = age 50, income 15,000 (max age for income earning 70) 70 – 50 = 20 Total Income = 20,000 Age calculation = 25 * (5,000/20,000) + 50 * (15,000/20,000) Weighted average age = 44 (rounded-up) Maximum tenor = 26 (rounded-up) 20

22. AIA confidential and proprietary information. Not for distribution. LTV’s breakdown in accordance to the nature of the loan: Loan to Value (LTV) / Margin of Finance PurposeLTV / Margin Purchase from Developer Up to 90% Purchase from SubsaleUp to 90% (Open Market Value or Purchase Price, whichever is lower) RefinanceUp to 90% (with or without cashout) InvestmentUp to 80% ForeignersUp to 70% to 80% 3 rd Housing LoanUp to 70% (as per BNM’s guidelines)

23. AIA confidential and proprietary information. Not for distribution. Guideline for Debt Service Ratio (DSR - based on net income) Income - Calculation All outstanding loan instalments, 5% credit card minimum payments and non-banks loan instalments (including those not covered by CCRIS) Income after statutory deductions (ie tax, EPF, SOCSO) For high net-worth customers (ie. customers with total net personal assets exceeding one million ringgit), flexibility is provided to consider the customers’ deposits, assets and/or investments in assessing the customers’ ability to repay the financing. Net IncomeDSR Above RM8KUp to 70% Above RM5K to RM8KUp to 65% RM3K to RM5KUp to 60% Below RM3KUp to 50% DSR = * The percentage quoted is served as a guideline and variations to it will be applicable to customer's profile and management’s discretion.

24. AIA confidential and proprietary information. Not for distribution. Salary Earners / Employed Income - Calculation Type of IncomeBased on monthly average Basic Salary100% Fixed Allowance100% Annual Contractual Bonus100% Rental70% with tenancy agreement and 3-6 months bank statement to show the crediting of rental income Commission50% if provide 6 to 12 months evidence (Taking out high & low – Showing Consistency) Non Fixed Allowance50% if provide 6 to 12 months evidence (Taking out high & low – Showing Consistency)

25. AIA confidential and proprietary information. Not for distribution. Self Employed Income - Calculation Minimum 2 years income tax return will be the basis of income recognition. Latest 6 to 12 months business bank statements may be provided as further estimation of business income – especially for professionals such as Accountants, Specialists, etc. Applicants who own more than one business entity may submit more than one business current account for computation of income consideration. Personal bank account statements may be used as supporting documents. Net income is derived after minus off tax (taxable amount is per latest Tax Schedule available).

26. AIA confidential and proprietary information. Not for distribution. 25 PREPAYMENT PENALTY A prepayment fee of 0.62%p.a of the full prepaid amount together with an Administrative fee of 0.40% of the full prepaid amount or such other rate as may be imposed by AIA at any time or from time to time shall be borne by the Borrower if the Borrower prepays the Facility in full within five (5) years from the date of first drawdown of the Facility or half of the total loan tenure, whichever is shorter. The prepayment fee will be calculated based on the remaining years of the first five (5) years of first drawdown of the Facility or half of the loan tenure of the Facility, whichever is the shorter. There will be NO prepayment fee imposed if prepayment is done via own savings, Employee Provident Fund (EPF) withdrawal and/or sale of property except for refinancing.

27. AIA confidential and proprietary information. Not for distribution. 26 PREPAYMENT PENALTY – How To Calculate 0.62% x Tenure Factor* x Full Settlement Amount plus Admin Charge of 0.40% x Full Settlement Amount * Tenure Factor is derived from: (Half of Loan Tenure minus Years with Payment Already Made) or (Remaining Lock In Period), whichever is shorter.

28. AIA confidential and proprietary information. Not for distribution. 27 PREPAYMENT PENALTY Example: Loan tenor of 20 years. Borrower refinance out from AIA on the 4th year. The full settlement amount is RM500,000 Lock In Period is 5 years Full settlement occurs on 4th year: New Prepayment Calculation Tenure Factor: Half of Loan Tenure (10 years) minus Years with Payment already made (4 years) = 6 years or Remaining Lock In Period = 1 year 0.62% X 1 year X RM500,000.00 = RM3,100 Admin Charge of 0.4% X RM500,000.00 = RM2,000 Total prepayment charge = RM5,100

29. AIA confidential and proprietary information. Not for distribution. 28 PREPAYMENT PENALTY Discount Cost (Applicable only for tiered Fixed Rate Loan & Refinancing) In addition to the prepayment penalty we also charge the discount rate enjoyed on the remainder of the 2 years based on the full settlement amount. Tiered rate charge back ( 4.99%-4.25%) x full settlement amount x remaining tenor to year 2 For Zero Moving Cost package, you will also be required to reimburse AIA for all fees, costs and expenses whatsoever including but not limited to valuation fees, stamp duties and legal costs on a solicitor and client basis incurred by AIA in connection with the loan in the event the loan is refinanced or fully settled within 5 years from the date of the 1st drawdown.

30. AIA confidential and proprietary information. Not for distribution. 29 OTHER TERMS & CONDITIONS Life policy and / or Mortgage Reducing Term Assurance (MRTA) are required. A houseowner insurance policy on the property to be charged is required. For non landed properties, a certified true copy of the master policy with AIA Bhd endorsed as a mortgagee/chargee must be forwarded to AIA on a yearly basis. Valuation reports & loan documentation to be handled by AIA’s panel valuers & solicitors.

31. AIA confidential and proprietary information. Not for distribution. 30 AIA SHOP LOANS

32. AIA confidential and proprietary information. Not for distribution. AIA SHOP LOAN *Terms & Conditions Apply 5.55%p.a. Fixed (Non – ZMC) 5.79%p.a. Fixed (ZMC)

33. AIA confidential and proprietary information. Not for distribution. AIA FIXED RATES Who can apply? Individual Malaysian Citizens or permanent residents. Commercial Properties Financed Completed commercial properties with Certificate of Fitness for occupancy. Completed shophouses with or without individual or strata titles. For leasehold land, the unexpired land lease must be at least 50 years upon maturity of the loan. Subject to minimum required marketability factor of 6.5 by our panel of valuer and site visit.

34. AIA confidential and proprietary information. Not for distribution. AIA FIXED RATES Commercial Properties Financed Factories, commercial retail lots and offices are excluded. Commercial properties on Malay Reserve or native land, located at landslip/flood prone area/Oxidation pond/power station and any negative factors that affect the open market value would also be excluded. Selected commercial areas located in Klang Valley and Selangor (Subject to minimum required marketability factor of 6.5 by our panel of valuer and site visit). Selected commercial areas located in Ipoh, Melaka, Johor Bahru, Penang, Kuantan, Kota Kinabalu and Kuching (Subject to minimum required marketability factor of 7 by our panel of valuer and site visit).

35. AIA confidential and proprietary information. Not for distribution. AIA FIXED RATES Prepayment Fee For both packages, there will be a prepayment fee levied should the loan be settled within the 1st 5 years from the date of 1st drawdown. The prepayment fee is chargeable at the rate of 0.45% times the number of remaining years of Loan (subject to maximum of 6% to a minimum rate of 3%) times the amount prepaid. In addition, for the Zero Moving Cost package, all fees, costs and expenses whatsoever including but not limited to valuation fees, stamp duties and legal costs on a solicitor and client basis incurred by AIA in connection with the loan shall be payable by you on demand, on a full indemnity basis in the event the loan is settled within 5 years from the date of 1st drawdown.

36. AIA confidential and proprietary information. Not for distribution. AIA FIXED RATES Loan Tenure Minimum: 5 years Maximum: 30 years (Maximum age upon maturity of the loan is 65 whichever is earlier). Minimum Loan : RM 300,000 Margin of Financing New Purchase: Up to 80% Refinancing: Up to 70% (based on open market value (OMV) or purchase price whichever is lower)

37. AIA confidential and proprietary information. Not for distribution. 36 DOCUMENTS REQUIRED

38. AIA confidential and proprietary information. Not for distribution. 37 DOCUMENTS CATEGORYEMPLOYEDSELF-EMPLOYED Personal NRIC Income 3 months latest payslips (fixed salary); 6 months latest payslips (with comm/allowances): Latest EPF Statement; Latest EA Form (for MNC firms); 2 years latest Borang B + tax receipts; Letter from Employer (if less than 6 months) 3 years latest Borang B + tax receipts; 3 years latest financials (P&L) Form 24, Form 49, M&A (1 st pg) for Sdn Bhd company Borang A & Borang D for sole- proprietor & partnership. Bank 3 months latest bank a/c statement showing credit of salary (fixed salary); 6 months latest bank a/c statement showing credit of salary (with comm/allowances); Credit Card statements 6-12 mths latest personal Current a/c; 6-12 mths latest company Current a/c; Credit Card statements

39. AIA confidential and proprietary information. Not for distribution. 38 DOCUMENTS CATEGORYEMPLOYEDSELF-EMPLOYED Property SPA & Title Deed (if available) Booking Receipt (if available)= SAME = Note: 1.Other income justifications includes: a) Stamped copy of valid tenancy agreement with evidence of credit of rental to account for the past 6 months, b) Fixed deposits, unit trusts etc. (copies of receipts) 2. Should the address in the IC differs from corresponding address in application form, a copy of a utility bill should be given as proof of residence (ie. phone bill, electricity bill, etc).

40. AIA confidential and proprietary information. Not for distribution. 39 MORTGAGE HEALTH CHECK

41. AIA confidential and proprietary information. Not for distribution. 40 MORTGAGE HEALTH CHECK CALCULATOR

42. AIA confidential and proprietary information. Not for distribution. 41 GET A FREE MORTGAGE HEALTH FOR 2012 How does a Mortgage Health Check Benefit Your Clients? If they have a home loan with other banks, pass us their loan statement and offer letter. Then, see how you could help them: 1) Settle the home loan earlier 2) Pay less rather than more for monthly instalments 3) More certainty and better financial planning Don’t get caught up in a financial maze.

43. AIA confidential and proprietary information. Not for distribution. 42 HOW DO YOU START SELLING AIA HOME LOANS?

44. AIA confidential and proprietary information. Not for distribution. 43 SPREAD THE GOOD NEWS & MAKE YOURSELF PROMINENT USE HOME LOANS TO TIE UP WITH MANY CHANNELS 1) SMS and reach out to your policyholders, friends and public eg :- Gd news! AIA Home loan fixed at 4.85% and 5.25% (zero moving cost) up to 40 yrs. No penalty for early settlement for sale of property. Financial stability even inflation & BLR increase! For more info, call …… HP : ………… 2) Distribute flyers to your neighbourhood – Make yourself a prominent Financial Consultant in your neighbourhood. 3) Email blast/ Facebook/Twitter to your clients, friends and everybody. 4) Conduct Road Shows & Set up Booths to get leads. 5) Source from panel of lawyers. 6) Obtain leads from Real Estate Agents. 7) Tie up with panel of developers, MNC & corporates. 8) Cold calling to targeted clients, Mortgage healthchecks 9) Advertise in classifieds, website.

45. AIA confidential and proprietary information. Not for distribution. 44 BE REWARDED Referral Fee* 0.35% of Loan Amount (upon disbursement) Plus Further Add-Ons of Life Policy, MRTA & Fire Insurance Recognition* Overseas Trip For Top Producers Awards During Annual Dinners Convention Production Points* 1% Production Credit Based on Loan Disbursed RM1m Loan Disbursed = RM10k ANP Capped at Maximum 10% of ANP Required *Terms & Conditions Apply

46. AIA confidential and proprietary information. Not for distribution. 45 CONTACT US FOR MORE DETAILS: KUALA LUMPURTel: 03-2056 3333 Fax: 03-2056 3325 Sam Wong DL: 03 -2056 3341 H/P: 0112 308 6032 Darren YapDL: 03-2056 3387 H/P: 0112 308 5287 Teresa SiaDL: 03 -2056 3343 H/P: 0112 308 6136 Sze LingDL: 03 -2056 3323 H/P: 0112 308 8234 Victor SeeDL: 03 -2056 3319 H/P: 012 346 0656 Qua Boon LeongDL: 03 -7680 8625 H/P: 0112 308 8937 PENANG Lau Beng Hock DL: 03 -2056 1175 H/P : 0112 308 5585 Email : my.loan@aia.com