The National Mortgage Corporation of Malaysia has announced the launch of the Reverse Mortgage Scheme for seniors who own homes to apply!
The Reverse Mortgage Scheme (Skim Saraan Bercagar) or SSB for short is a scheme launched by the Malaysian National Mortgage Corporation (Cagamas), which aims to allow seniors who own homes to receive a monthly living allowance after retirement.
Through the Reverse Mortgage Scheme (SSB), seniors who own a home can apply for a loan from the relevant authorities at the existing house price and then receive a monthly payment to cover their retirement life. SSB’s annual loan interest rate is 5% of the balance, and a one-time waiver of recourse fee is 1.75% of the earlier house price.
In other words, this is a housing pension plan, allowing retirees with a house to use the house as a mortgage, and then receive a monthly living allowance until the applicant dies. Descendants of the applicant need to pay the loan to the relevant authorities before they can claim the house back.
Interested parties can go to the Employees Provident Fund (Kumpulan Wang Simpanan Pekerja) or KWSP for inquiries and applications. It is currently only open to people in the Klang Valley area, and applications will be opened on January 17. For more details, please visit https://www.ssb.cagamas.com.my/.
Application conditions
1. Malaysian citizens aged 55 years or above.
2. For individual or joint houses.
3. Existing residence only.
4. The mortgage has been paid.
Application steps
Step 1: Make an appointment with the Employees Provident Fund (KWSP).
Step 2: Provide relevant documents for eligibility.
Step 3: Interview and counsel with Agensi Kaunseling & Pengurusan Kredit (AKPK).
Step 4: Carry out the procedures related to the reverse mortgage scheme.
Step 5: Submit all information to Cagamas.
