Question 1

Is reverse mortgage available in Malaysia?

Accepted Answer

Yes, reverse mortgage is available in Malaysia through Skim Saraan Bercagar (SSB) offered by Cagamas Berhad, the National Mortgage Corporation. SSB allows homeowners aged 55 and above with fully-paid homes to receive monthly tax-free income without selling their property. An Islamic version (SSB-i) is also available.

Question 2

What is Skim Saraan Bercagar (SSB)?

Accepted Answer

Skim Saraan Bercagar (SSB) is Malaysia's reverse mortgage scheme operated by Cagamas Berhad. It allows senior citizens (55+) who own fully-paid residential properties in selected areas (Klang Valley, Johor Bahru, Penang Island) to receive monthly income payments. The loan is only repaid when the borrower passes away, sells the property, or moves out permanently.

Question 3

What is the biggest problem with reverse mortgage?

Accepted Answer

The main concerns with reverse mortgage include: (1) Accumulated interest reduces equity over time, leaving less for heirs; (2) Limited availability - SSB only covers Klang Valley, JB, and Penang; (3) Property must be fully paid with no existing loan; (4) Monthly payouts may be lower than expected depending on age and property value; (5) If you need a large lump sum, SSB only provides monthly payments.

Question 4

How much can a 70 year old borrow on a reverse mortgage?

Accepted Answer

The monthly payout from SSB depends on your age and property value. Generally, older applicants receive higher monthly payments since the expected payout period is shorter. For a 70-year-old with a property valued at RM500,000, monthly payouts could range from RM1,500-RM2,500. Contact Cagamas directly for an accurate calculation based on your specific situation.

Question 5

Which bank is best for reverse mortgage in Malaysia?

Accepted Answer

Reverse mortgage (SSB) in Malaysia is only available through Cagamas Berhad, not regular banks. However, RHB Bank is a settlement partner for SSB. If you're looking for alternatives to unlock home equity, major banks like Maybank, CIMB, Public Bank, and Hong Leong offer cash-out refinancing which provides lump sum payments.

Question 6

How to apply for SSB Cagamas?

Accepted Answer

To apply for Skim Saraan Bercagar: (1) Contact Cagamas directly or visit their website; (2) Ensure you meet eligibility - aged 55+, own fully-paid residential property in eligible areas; (3) Submit required documents including IC, property title, and proof of ownership; (4) Property valuation will be conducted; (5) If approved, you'll receive monthly payments. The process typically takes 4-8 weeks.

Question 7

What are the SSB eligibility requirements?

Accepted Answer

SSB requirements include: (1) Malaysian citizen aged 55 years or above; (2) Own a fully-paid residential property (no outstanding mortgage); (3) Property located in Klang Valley, Johor Bahru, or Penang Island; (4) Property must be in good condition with valid title; (5) Minimum property value requirements apply; (6) Must be the sole owner or joint owner with spouse.

Question 8

Is SSB Syariah compliant?

Accepted Answer

Yes, Cagamas offers SSB-i, the Islamic/Syariah-compliant version of Skim Saraan Bercagar. SSB-i is structured according to Islamic financing principles and has been approved by Syariah advisors. Muslim homeowners can choose SSB-i to receive monthly income while ensuring compliance with Islamic finance requirements.

Question 9

Can retirees get cash-out refinancing instead?

Accepted Answer

Yes, retirees can qualify for cash-out refinancing if they have verifiable income (pension, EPF withdrawals, rental income). Unlike SSB, cash-out refinancing provides a lump sum, works on properties with existing loans, and is available nationwide. It's a good alternative for those under 55, outside SSB coverage areas, or who prefer lump sum over monthly payments.

Question 10

What happens to my property after SSB reverse mortgage?

Accepted Answer

With SSB, you continue to own and live in your property. The loan is only settled when: (1) You pass away - heirs can repay the loan to keep the property or sell it; (2) You sell the property voluntarily; (3) You permanently move out. Any remaining equity after loan settlement goes to you or your heirs.

Feature	SSB (Skim Saraan Bercagar)	Cash-Out Refinancing
Provider	Cagamas only	All major banks
Age Requirement	55+ years	18-70 years
Property Requirement	Must be fully paid	Can have existing loan
Coverage Area	KL, JB, Penang only	Nationwide
Payout Type	Monthly income	Lump sum
Repayment	When you pass/sell	Monthly installments
Max Amount	Based on age/property	Up to 90% LTV
Islamic Option	Yes (SSB-i)	Yes (at Islamic banks)
Best For	Seniors wanting monthly income	Anyone needing lump sum cash

Reverse Mortgage Malaysia 2026 - What You Need to Know

What is a Reverse Mortgage?

How Reverse Mortgage Works

1. Own Your Home

2. Receive Monthly Income

3. Repay Later

Is Reverse Mortgage Available in Malaysia?

Skim Saraan Bercagar (SSB)

Key Features:

Eligibility Requirements:

How Skim Saraan Bercagar (SSB) Works

Check Your Eligibility

Apply to Cagamas

Property Valuation

Receive Monthly Income

Continue Living in Your Home

Important Considerations

SSB vs Cash-Out Refinancing: Which is Right for You?

Choose SSB If You:

Choose Cash-Out Refinancing If You:

Cash-Out Refinancing: The Flexible Alternative

Benefits of Cash-Out Refinancing:

Example Cash-Out Calculation:

Banks That Offer Cash-Out Refinancing

Maybank

CIMB

Public Bank

Hong Leong

Frequently Asked Questions

Need Help Choosing the Right Option?

Get Your Free Refinancing Quote

Related Guides

Cash-Out Refinancing Guide

Refinance Fully Paid Home

DSR Calculator

Best Refinancing Banks