1. ‘Trade-Up Mortgage’ loan for a New Residential House a) Outline of Scheme i. The Trade-Up loan is to part finance customers in purchasing a new house pending sale of their existing house. ii. The existing house must have an individual title issued to it. ii. The customer is to apply for the housing loan and the Trade-Up Mortgage Loan (for purpose stated in Section (b) below) simultaneously for the new house. b) Purpose The Trade-Up Mortgage loan is for settlement of the outstanding amount owing to financial institution to redeem the existing house. It is also to pay for the shortfall between the purchase price of the new house and the approved limit of the loan. c) Loan Amount i. Minimum loan amount is RM10,000. There is no maximum limit. ii. The loan is available in the form of overdraft only. However no cheque book is to be issued. d) Repayment Capability i. The monthly instalment of the New Housing Loan plus the monthly OD interest should not exceed 70% of the customer's net monthly income. ii. The spouse's income may be included as joint income. e) Security The existing house is to be offered to the Bank as security.

2. f ) Documentation For houses with an Individual Title Properties charged to an existing financier  Lodge a private caveat on the title, then release the redemption portion of loan to the existing financier to redeem the title of the existing house.  Upon receipt of the title from the existing financier, to lodge a lien holder's caveat on the title.  Release balance loan to developer/vendor of new house. Properties free from encumbrances  Borrower is to deposit the title with the bank.  Upon receipt of title from the borrower, to lodge a lien holder's caveat on the title.  Release the loan sum to the developer/vendor of the new house. g) Release of Fund i.The fund is to be released to redeem the title from the financial institution and the balance of the loan is to be released to the vendor as down payment for the new house. ii.The cheque made payable to the financial institution or vendor whichever is applicable for the down payment for the new house is to be sent through the Bank's solicitors. iii.Where the new house is under construction, the down payment should be made in accordance with the 3rd Schedule (Schedule 'G') of the Housing Development (Control and Licensing) Regulations 1989.

3. h) Default i.In the event the Trade-Up Mortgage loan is not settled within the stipulated time frame, the account is deemed to be in default. ii.If borrower request for a reclassification of the facility, Branch Manager may consider the request subject to the usual terms and conditions / requirements in the evaluation of the repayment capability / ability of the borrower.

4. Margin of AdvanceThe difference between the purchase price of the new house and the loan limit plus o/s amount owing of the existing house subject to the maximum of 90% of forced sale value (FSV) of the existing house. 90% FSV = 70% OMV Type of FacilityOverdraft (O/D) (No Cheque book to be Issued) Interest RatePrevailing MaxiHome FlexiOD rate Repayment Period Service monthly interest only. Loan outstanding is to be fully settled within 18 months from date the fund is fully released or upon receipt of the proceeds from the sale of the existing house whichever is earlier. Product Type code LIS C8 OD Loan Type code 17

5. Trade Up Mortgage Case 1 Existing House – completed with Individual TitleNew House (U/C or Completed) (RM) Bank’s valuation OMV = 600,000 MOA for Trade up loan = 70% x OMV = 70% x 600,000 = 420,000 Less Redemption sum to Existing Financier = 260,000 Balance to Cover Shortfall of New Housing Loan = 160,000 (RM) Purchase Price = 800,000 New loan limit @ 80% = 80% x 800,000 = 640,000 Balance Purchase Price = 160,000 From Trade Up Loan = 160,000 Balance to be paid by Borrower = NIL After 18mths, property is sold for RM600,000. Trade Up loan of RM420,000 is to be fully settled. Remaining balance from property sale of RM180,000 is the borrower’s own funds.

6. Case 2 Existing House – completed with Individual TitleNew House (U/C or Completed) (RM) Bank’s valuation OMV = 600,000 MOA for Trade Up loan = 70% x OMV = 70% x 600,000 = 420,000 Less Redemption sum to Existing Financier = 260,000 Balance to Cover Shortfall of New Housing Loan = 160,000 (RM) Purchase Price = 800,000 New loan limit @ 70% = 70% x 800,000 = 560,000 Balance Purchase Price = 240,000 From Trade Up Loan = 160,000 Balance to be paid by Borrower to Vendor = 80,000

7. Case 3 Existing House – completed with Individual TitleNew House (U/C or Completed) (RM) Bank’s valuation OMV = 600,000 MOA for Trade up loan = 70% x OMV = 70% x 600,000 = 420,000 Redemption sum = NIL Maximum Trade Up Loan = 420,000 Actual Trade Up Loan Allowed = 300,000 (RM) Purchase Price = 1,000,000 New loan limit @ 70% = 70% x 1,000,000 = 700,000 Balance Purchase Price = 300,000 From Trade Up Loan = 300,000 Balance to be paid by Borrower = NIL

8. RENOVATION LOAN FOR COMPLETED LANDED HOUSES ONLY 1. Purpose of Loan To part finance the renovation expenses of a completed landed house purchased from the Secondary Market. Applicable for the 1 st and 2 nd housing loans only. 2.Target Customers/ Target Properties High Networth Customers purchasing completed landed houses from the Prime Secondary Market in Klang Valley and Penang Island. Minimum monthly income of RM10k including proxy income. Minimum property value of RM300k. 3.Facility Type Term loan only, maximum renovation loan amount of RM500,000 per customer. 4.Portfolio Cap RM50.0 million 5. Availability Period of Loan The loan must be drawndown within 12 months from notification of 1 st loan disbursement. The undrawn portion, if any, is to be treated as cancelled and the loan amount adjusted accordingly.

9. 6. Repayment Period In tandem with the Housing Loan. 7Interest Rate Concurrent with the Housing Loan interest rates. 8.Margin of Advance Additional 30% or total financing of 120% of latest Open Market Value, whichever is lower, with or without MRTA. Scenario 1 Finance Purchase of Property90% Capitalisation of MRTA & related Expenses 5% Renovation Loan25% ------ Total (max)120% ==== Scenario 2 Finance Purchase of Property90% Capitalisation of MRTA & related Expenses 0% Renovation Loan30% ------- Total (max)120% ====

10. 9. Repayment Capacity The total loan commitments including the renovation loan portion must be within 70% of borrower’s monthly net income/salary. No escalation on breach of DSR allowed. 10.Calculation of Interest Daily rest 11.MRTA Concurrent with the Housing Loan. 12. Coverage of Renovation Loan Only structural and repair works that add value to the property upon completion, including :- 1.Repairs to the building 2.Structural changes, additions. 3.Others EXCLUDING fittings, furnishings and removable items (air cond etc..) 13. Pre-disbursement Conditions Site visit to be conducted by CSE/CAC officer to verify completion of works done against contractor’s/supplier’s invoices.

11. 14. Control of Loan Disbursements Housing Loan + Renovation Loan under One (1) housing loan account. Housing Loan portion released in one lump sum to vendor/developer. Renovation Loan portion to be released progressively against supplier’s/contractor’s invoices within 12 months from 1 st loan release. Upon full loan release (ie HL +RL), system recalculates the actual instalment based on actual loan outstanding. Notice is issued to borrowers accordingly to commence instalment payments. 15. Security Arrangement The additional 30% MOA is to be secured against the property financed. Loan documentation to be executed by borrower upfront to include the renovation loan portion. 16.Mitigation of Risks Total financing is capped at 120% of purchase price (excluding MRTA & related expenses) Renovation loan portion is capped at maximum of RM500,000. Limiting the type of renovations covered by the financing. Total loan repayment is within 70% DSR of borrower’s net monthly income. No escalation allowed on breach of DSR. Renovation loan portion is released progressively against supplier’s/contractor’s invoices after verification via site visit. The additional 30% margin is secured against the property purchased.

12. 17.Terms & Conditions Borrower must apply for housing loan + renovation loan together i.e. he cannot apply for the Renovation Loan separately. Property purchased must be landed and completed residential property Properties must be located in Prime Areas in Klang Valley and Penang Island only. Maximum renovation loan of RM500k per customer. One renovation loan application per customer only. Restricted to 1 st and 2 nd Housing Loans only. Owner occupied properties only. Minimum monthly income of RM10k including proxy income. Must meet the standard DSR of 70% of monthly net income. No escalation allowed on breaches of MOR. Portfolio cap RM50.0 million. Site visit must be conducted by the Bank’s representative to verify completion of renovation works done. Renovation loan portion is released only if borrower’s progressive interest repayment on the housing loan is up-to-date.

13. 18.Reporting Treatment Reported as “Housing Loans”. 19. Authority Limit For purpose of exercise of authority limit, the proposed prescribed MOA of up to 130% should be treated as “SECURED”. 20.Product Type Code C3 (Conventional) 21.Economic Sector Code 0310 (Purchase of Residential Property)