Skim Saraan Bercagar Loan interest rate is revised to 5.75% per annum effective 12 September 2022 following the announcement on the Overnight Policy Rate (OPR) increase by Bank Negara Malaysia.

Skim Saraan Bercagar (SSB)
Reverse Mortgage

Enabling retired home owners to gain access to a lifetime of supplemental income stream for daily subsistence to cater to potential increases in the cost of living.

Application opens on 17 January 2022 for Klang Valley residents only.

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About Skim Saraan Bercagar (SSB)

Senior home owners can now generate cash during retirement by taking out a reverse mortgage.

What is Skim Saraan Bercagar (SSB)?

Skim Saraan Bercagar or Reverse Mortgage (“RM”) is a type of loan that is targeted for the elderly or retirees who own a home, and allows them to convert their one big asset — their residential property — into a fixed monthly income stream throughout their lifetime, without sacrificing  ownership whilst continuing to stay in their home.

  • To enable retired home owners to gain access to a lifetime of supplemental income stream for daily subsistence.
  • Home owners can now draw on their home equity to supplement their retirement income, thus reducing dependency on their next-of-kin.

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Lifetime tenure

Lifetime tenure

Fixed monthly payouts throughout the entire life of the borrower or joint borrower.

No repayment during lifetime

No repayment during lifetime

Repayment only due when borrower or joint borrower passes away, whichever later.

Residing in own home

Residing in own home

Borrower and joint borrower can continue to stay in their property throughout their life.

Non-recourse

Non-recourse

Borrower’s estate will not be responsible for any shortfall to settle the Skim Saraan Bercagar Loan if the sale proceeds of the property is less than the outstanding loan amount.

How does it work?

To qualify for a Skim Saraan Bercagar Loan, the person must be at least 55 years of age and own a home.

Eligible Criteria for Borrower

Eligibility Criteria for Borrower

  • Malaysian aged 55 years and above, applicable for single and joint RM Loan.
  • Owner or joint -owners of a residential property.

*** For joint RM Loan, not only confined to the partner but includes parent, sibling or child, subject to age limit.

Eligible Criteria for Property

Eligibility Criteria for Property

  • Residential property in Malaysia in Borrower’s name (joint ownership for joint RM Loan)
  • Borrower occupied and the primary place of residence
  • Unencumbered and mortgage-free
Get a peace of mind with Cagamas

Get peace of mind with Skim Saraan Bercagar (SSB) Reverse Mortgage at a fixed rate financing (TBA)

The amount of payout that a Borrower receives will largely depend on the Borrower’s age and property value, location and type.

Use our reverse mortgage calculator to estimate the monthly payout amount. A one-time lump sum payout together with monthly cash disbursements is also available. Learn more about the lump sum and costs here. 

How To Apply

We make the application process for Skim Saraan Bercagar (SSB) as simple as possible. Follow these steps below and you’re on your way to a Skim Saraan Bercagar Loan!

Walk in to any designated EPF branches

Schedule an appointment with EPF via this link: https://www.kwsp.gov.my/ms/janjitemu

EPF Kuala Lumpur
Ground Floor KWSP Building
Jalan Raja Laut
50350 Kuala Lumpur
EPF Petaling Jaya Services Counter
PJX-HM Shah Tower
Lot A, Ground Level,
No. 16A, Persiaran Barat
46050 Petaling Jaya
Selangor
Take a pre-assessment test to determine your eligibility

Take a pre-assessment test to determine your eligibility

Make an appointment with AKPK's Financial Advisor

Make an appointment with AKPK's Financial Advisor

Complete the reverse mortgage financial advisory module with AKPK

Complete the reverse mortgage financial advisory module with AKPK

Submit your Skim Saraan Bercagar application to Cagamas or nearest EPF branch

Submit your Skim Saraan Bercagar application to Cagamas

Frequently Asked Questions

Have a question about Skim Saraan Bercagar (SSB) Reverse Mortgage? Find the answers about Skim Saraan Bercagar Loan, eligibility, costs and more, here in our FAQs

In this situation, the standard loan termination process will take place. Below are the options available to the next-of-kin.

Settle the outstanding Skim Saraan Bercagar Loan
The outstanding amount  will depend on the loan tenure. After settling the outstanding amount, the property will be passed back to the next-of-kin.

Not settle the Skim Saraan Bercagar Loan
If the next-of-kin chooses to not settle the loan, Cagamas will proceed to dispose the property and settle the outstanding loan. Any balance in the sale proceeds of the property, after subtracting the loan amount, will be passed on to the borrower’s estate.

Borrower may surrender or terminate the agreement by settling or paying off the outstanding loan amount accumulated until that point of time.

No, the surviving joint-borrower would be able to reside in the property until death.

Want to talk to us about Skim Saraan Bercagar (SSB) Reverse Mortgage?

We’re here to answer your questions and guide you through the Skim Saraan Bercagar Loan process.

Established in 1986 to promote the broader spread of home ownership and growth of the secondary mortgage market in Malaysia.

Want to talk to us about Skim Saraan Bercagar (SSB) Reverse Mortgage?
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