This HomeSmart-i financing is calculated on a variable rate basis and you are pledging the property as a security for this financing.

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1 PRODUCT DISCLOSURE SHEET (Read this Product Disclosure Sheet before you decide to take out HomeSmart-i. Be sure to also read the general terms in the letter of offer. Seek clarification from your institution if you do not understand any part of this document or the general terms) HSBC Amanah Malaysia Berhad < Name of HomeSmart-i Type> Date : / / (dd/mm/yyyy) 1. What is this product about? This HomeSmart-i financing is calculated on a variable rate basis and you are pledging the property as a security for this financing. For Completed Property: What is the Shariah concept applicable? The Shariah concept applicable is Diminishing Musharakah (Co-ownership). Diminishing Musharakah involves three underlying contracts independent from each other, those are: (i) co-ownership, (ii) lease, and (iii) purchase. i. Co-ownership: The Bank participates as a financial partner in the acquisition of the property. You and the Bank contribute the capital to own the property. ii. Lease: The Bank then leases its share of the property to you for rental payment. iii. Purchase: On monthly basis, you purchase a portion of the Bank s shares. This purchase is effected against purchase price paid by you. Accordingly, the monthly payment which you have to pay to the Bank consists of: i. rental payment (to lease the Bank s share of the property), and ii. purchase price (to buy the Bank s share of the property). With each full payment you pay, the proportion of your shares in the property will increase, while the Bank s portion gradually diminishes. Ultimately, the transfer of all the Bank s share of the property to you will take place when the Bank s capital portion and lease rentals for the lease tenor have been paid in full. After that, you will fully own the property. For Property Under Construction: Financing of property under construction is based on an arrangement of Diminishing Musharakah and Istisna (construction procurement). The Istisna Agreement is applicable during the construction period. Istisna, which refers to a contract under which one party purchases from another at an agreed price, an asset to be constructed, built or manufactured in accordance with the agreed specifications, and which is to be delivered by the seller on an agreed future date. For this facility, the Istisna asset will be the property which must be a residential premises; the purchaser will be the Musharakah parties (which via a co-ownership arrangement, are collectively the Bank and you) and the seller and procurement party will be you. Your obligations as seller and procurement party are to: a. deliver the property that has been completed and built in accordance with the agreed specifications; and b. provide options arising from non-delivery and defects of the property. Your obligations as a Musharakah party are to: a. accept the completed property that is built in accordance with the agreed specifications and pay the Istisna selling price; and b. exercise options arising from non-delivery of the property and to deal with the defects in the property (if any).

2 Key terms and conditions of the Istisna documentation: The Musharakah Parties agree to jointly enter into this Istisna Agreement with the Seller and Procurement Party whereby the Musharakah Parties shall purchase; and the Seller and Procurement Party shall procure the construction and delivery of the Property based on the terms and conditions in the Istisna Agreement. In consideration of the Musharakah Parties agreeing to pay the Istisna Price, to or for the benefit of the Seller and Procurement Party, the Seller and Procurement Party hereby agrees as follows: a) to build, construct and deliver the Property in accordance with the terms of this Istisna Agreement and other documents related thereto; and b) to deliver possession of the Property to the Musharakah Parties on completion of the construction thereof. Failure to complete and deliver the property is considered an event of default, and failure to fulfil your obligations as seller and procurement party is considered negligence. 2. What do I get from this product? Total amount financed: RM ( % of house price) Tenure: years Base Rate (BR) : % per annum Lease Rental Rate: Year 1-3: BR + % (ER = %) Year 4-5: BR + % (ER = %) Thereafter: BR + % (ER = %) 3. What is the Base Rate (BR)? *ER = Effective Rate The BR we offer on this product is made up of two parts, our benchmark cost of funds (COF) and the Statutory Reserve Requirement (SRR) cost imposed by Bank Negara Malaysia. Our benchmark COF reflects the cost of raising deposits from Time Deposits and is based on external funding benchmark reference to 3 Month KLIBOR. 4. What are possible scenarios to trigger a change in the BR? Our BR can rise or fall due to change in the benchmark COF and changes in the SRR. Changes in the benchmark COF could occur due to changes in the Overnight Policy Rate (OPR) as decided by the Monetary Policy Committee of Bank Negara Malaysia, as well as other factors such as changes in the Bank s funding strategy or cost of raising funds.

3 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr Historical benchmark COF in last 2 years 4.00% 3.90% 3.80% 3.70% 3.60% 3.50% 3.40% 3.30% 3.20% 3.10% 3.00% Benchmark Cost of Funds BR 6. What are my obligations? Your Monthly payment : Year 1-3: RM Year 4-5: RM Thereafter: RM Total amount that would have been paid at the end of years is RM Tenure of Facility Today If BR goes up If BR goes up (BR= %) 1% 2% Monthly payment year(s) from the date of first disbursement or 3 months from the date of Letter of Offer, whichever is the earlier RM RM RM years RM RM RM Thereafter RM RM RM Total lease rentals that would have been paid at the end of years Total amount that would have been paid at the end of years RM RM RM RM RM RM Important: Your monthly payment and total amount to be paid will vary if the BR changes. You can choose to pay more than the actual Monthly Payment, and if you need to, the excess amount can be subsequently withdrawn subject to the available Facility Limit. While the excess amount is in the Facility account, it will benefit you by reducing the lease rental amount for that period. Pending commencement of the Monthly Payment as provided in the table above, you are required to pay to the Bank lease rentals at the stipulated lease rental rate(s) calculated on the utilised portion of the Facility starting one month from the first disbursement of the Facility or starting on such other date as advised by the Bank in writing.

4 7. What other fees and charges do I have to pay? a) Stamp Duties As per the Stamp Act 1949 (Revised 1989), subject to any stamp duty exemption or remission orders. From 1 January 2016 until 31 December 2017, there is a twenty percent (20%) stamp duty remission under Stamp Duty (Remission) Order b) Legal Fees and Disbursements Fees Legal fees plus 6% for Goods and Services Tax. Disbursements including fees for registration of charge and other related charges. c) Processing Fees - Nil - d) Monthly Service Fee Monthly fee of RM10 plus 6% for Goods and Services Tax per month throughout the tenure of the HomeSmart-i financing. e) Additional Rental Charge Additional rental charge of RM 40 per month will be charged if the average utilization rate (Average Outstanding Balance divided by Current Month Facility Limit) for the month is less than 50%. This fee will only be applied upon full disbursement of the home financing and applicable for the period of 5 years from the full disbursement date. 8. What if I fail to fulfil my obligations? Late payment charges at the following rates, causing the total amount to be paid to increase: o 1% per annum on the outstanding monthly payment due during the tenure of the HomeSmart-i calculated on daily rests. o At a rate not exceeding the prevailing IIMM-rate (namely the daily weighted average overnight rate for Mudharabah interbank investment quoted in Malaysia s Islamic interbank money market) on the total outstanding Purchase Price, calculated on daily rest basis after expiry of the Tenure or after judgment is obtained (whichever is earlier). We may set-off any credit balance in your accounts maintained with us or HSBC Bank Malaysia Berhad against any outstanding balance in this HomeSmart-i financing account. Legal action will be taken if you fail to respond to reminder notices issued. Your property may be foreclosed and you will have to bear all related costs. You are also responsible to settle any shortfall after your property is sold. Legal action against you may affect your credit rating leading to the credit being more difficult or expensive to you. 9. What if I fully settle the HomeSmart-i financing during the lock-in period? Lock-in period: months from the date of first disbursement of the Financing. Early termination fee: 2% x Facility Amount x Number of remaining months within the lock-in period Total lock-in period in months

5 10. Do I need any takaful coverage? You are to take adequate takaful protection for the property against fire, lightning, riot and strike, malicious damage, explosion and other relevant risks up to the replacement cost, for so long as the Facility is outstanding from any licensed and reputable takaful operators with the interest in the takaful certificate vested in the Bank as Chargee/Assignee. 11. What do I need to do if there are changes to my contact details? It is important that you inform us of any change in your contact details to ensure that all correspondences reach you in a timely manner. 12. What are the major risks? If you have problems meeting your financing obligations, contact us early to discuss payment alternatives. If the payment period extends beyond your retirement age, it is important for you to have a plan for your payment obligations during retirement. The profit rates on this HomeSmart-i financing might change according to changes in the base financing rates. An increase in base financing rate may result in higher monthly payment. 13. Where can I get assistance and redress? If you have difficulties in making payments, you should contact us earliest possible to discuss payment alternatives. You may contact us at: HSBC Amanah Malaysia Berhad Branch Address : Tel : Fax : Alternatively, you may seek the services of Agensi Kaunseling dan Pengurusan Kredit (AKPK), an agency established by Bank Negara Malaysia to provide free services on money management, credit counselling, financial education and debt restructuring for individuals. You can contact AKPK at: Tingkat 8, Maju Junction Mall 1001, Jalan Sultan Ismail Kuala Lumpur Tel : enquiry@akpk.org.my If you wish to complaint on the products or services provided by us, you may contact us at: HSBC Amanah Malaysia Berhad Branch Address : Tel : Fax :

6 If your query or complaint is not satisfactorily resolved by us, you may contact Bank Negara Malaysia LINK or TELELINK at: Block D, Bank Negara Malaysia Jalan Dato Onn Kuala Lumpur Tel : Fax : bnmtelelink@bnm.gov.my 14. Where can I get further information? Should you require additional information about taking a home financing, please refer to the bankinginfo booklet on House Financing-i available to all our branches and website. 15. Other home financing packages available: NIL IMPORTANT NOTE: YOUR HOUSE MAY BE FORECLOSED IF YOU DO NOT KEEP UP PAYMENTS ON YOUR HOME FINANCING The information provided in this disclosure sheet is valid as at / / (dd/mm/yyyy).