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.

The full monthly payout will still continue to be paid to the surviving joint-borrower until death.

Yes, the partner will need to be joint owner of the property to be eligible.

Current owner would need to register the new owner with the Land Office to add the additional owner of the property. It will usually take about 1-2 months, subject to Land Office’s approval. 

In this circumstance, the joint borrowers will need to discontinue the Skim Saraan Bercagar Loan by selling the property to settle the outstanding loan amount at that point of time.

The borrower would still need to name a nominee or next-of-kin before signing up for the Skim Saraan Bercagar Loan.

We allow for a flexible arrangement for the borrower to declare that their next-of-kin will be staying in the property or to rent out the property. However, in both instances, it must be due to specific circumstances such as medical or health conditions, with proof of medical certification.

Upon the demise of the borrower (or last surviving partner borrower for a joint Skim Saraan Bercagar Loan), the loan would NOT accumulate any more interest. It will cease with the last disbursement made on the monthly payout.

Upon signing up for the Skim Saraan Bercagar Loan, here are some expenses that will be incurred by the borrower.
Initial upfront expenses:

  1. One-Time Recourse Waiver Fee*/One-Time Facility Fee
  2. Legal fees
  3. Valuation fees
  4. Property insurance
  5. Administration fees (if any)
  6. Servicer fees (if any)

The initial expenses above can be financed by the Skim Saraan Bercagar Loan.

* To protect borrower’s estate/next-of-kin from being liable to settle the outstanding loan amount or shortfall if the sale proceeds of the property are less than the outstanding loan amount, upon demise of the borrower.

Yes, fire and home insurance for the property is compulsory to be undertaken by the home owner. This is similar to the requirement for normal mortgage loans by banks.

Our current Skim Saraan Bercagar Loan does not allow for any changes in the monthly payout amount. The monthly payout amount is fixed from the start of the loan tenure throughout the lifetime of the borrower(s).

Yes, we allow for leasehold properties with at least 90 years of lease remaining.

Otherwise, borrower may need to renew the lease to be eligible.