Skim Saraan Bercagar (SSB) by Cagamas is a type of loan for retired homeowners. Through a reverse mortgage, you can generate cash during retirement without sacrificing homeownership. This allows you to continue staying in your family home without repayment during your lifetime. Retired homeowners can use the monthly payout amount for any purpose, such as medical-related expenses and other necessities to make their retirement years more comfortable.

The Skim Saraan Bercagar Loan only requires settlement upon the demise of the borrower or joint borrower, whichever occurs later. No repayment is required during their lifetime and the property will only be sold to settle any outstanding loan amount upon the demise of the borrower or last surviving joint borrower. Any residual balance from that will go towards your estate.

Benefits of Skim Saraan Bercagar (SSB) Reverse Mortgage includes:

• Lifetime tenure
  You’ll have a fixed monthly source of income throughout your retirement years.
• Repayment happens later
  You don’t have to worry about repayment during your lifetime as it will only happen when you or the joint borrower passes away, whichever occurs later.
• Home sweet home
  You are able to reside in your home throughout your retirement years.
• A non-recourse loan
  If the eventual sale proceeds of the property is less than the outstanding loan amount, your family or your estate will not be responsible for any shortfall to settle the Skim Saraan Bercagar Loan.

According to Cagamas, here are a few reasons why you may consider Skim Saraan Bercagar (SSB):

• Ever-increasing cost of living
  The uncertainty of the economy can make retirees worry and be anxious about not having enough money to maintain their lifestyle throughout their retirement years.
• Independent living
  Retired home owners can have more financial independence through SSB in addition to their existing retirement income sources. They would not need to rely on their next-of-kin or other aid for money.
• Future-ready
  Having a ready supplemental income stream through SSB provides the additional financial buffer to cushion challenging times during potential events of crisis in the future. The coronavirus pandemic has resulted in widespread health and economic upheaval for older adults which would have a financial impact on their limited income, and SSB can be a lifeline during such times by providing a fixed monthly income stream for life.
• Mandatory retirement
  Senior citizens who are forced to retire because of age may not be financially ready to leave the workforce. This can result in income insecurity, making them too reliant on pension and savings.

Eligibility Criteria

For borrower:

• Malaysian
• 55 years old and above
• Owner or joint owners of a residential property
• For a joint loan, the joint borrower can be a partner, parent, sibling or child, subject to age limit

For property:

• Residential property in Malaysia held in Borrower’s or joint borrowers’ name(s).
• For a joint Skim Saraan Bercagar Loan, joint ownership of property is required.
• Property must be owner-occupied and be the primary place of residence.
• Free from encumbrances such as mortgage and other financial liabilities.

Details on the SSB can be found at its website: https://www.ssb.cagamas.com.my. Online application is currently open for Klang Valley residents only. It is not known when will this be available for Penang folks.