recently i am looking for mortgage loan for my first property for investment purpose.

most bankers told me that with my loan amount 250 to 290k, i can get at most -1.9 only.

however, an agent from stanchart (saadiq) offer me JustHome-i (islamic financing) with rates better than most bank.

problem is, another senior banker told me tat there is "issue" with this mortgage plan..

let say if i plan to sell/refinance, my remaining balance(debt) will multiply with 9.99% which is a lot ! though the stanchart agent said the bank will rebate money from this balance X 9.99%, but it's up to the bank to decide to rebate how much.

this is really a bad news for me. I have sign the LO. and two days ago, i already receive LI. sigh, now i regret.. is it possible to swap?

can anyone confirm if this islamic plan really have such issue?

This post has been edited by bumblebeecanfly: Jun 10 2010, 06:11 PM

that's how islamic home loan works. if you dont like it, can always go conventional loan.

Take care of the legal fees oso. Stand Chart's BBA dun finance legal fees for loan. must take that into account as well