The total amount the borrower will pay consists of three things:
Principal: this is the original loan amount that must be repaid to the bank
Interest: interest rate is fixed over the whole tenor the loan. The interest rate ranges from 8% to 10% according to the type of home loan. From time to time, CIMB offers home loan promotion with special offers, on newspaper and official CIMB Facebook page.
Applicable fees and charges: the borrower pays the bank 1% of the loan amount subject to a minimum of $1000 or ៛4 million for legal fee (including loan documentation and hypothecation). In addition, the borrower pays for property valuation fee, and yearly fire insurance premium. A charge or a penalty is levied if the borrower fails to fulfill loan conditions by, for example, missing monthly payment or choosing to settle the loan early. Please see Q17 for details.