FAQ

SSBT provides the customer with fixed monthly payout over a predetermined term. At the end of the term, the customer is required to settle the loan or financing. In contrast, traditional reverse mortgage typically does not have a fixed maturity date where repayment is usually triggered only when the customer passes away or permanently vacates the property.

SSBT serves as an alternative financing option with term for the elderly or retirees in meeting their temporary financial needs; while traditional reverse mortgage provides a lifetime source of income for the elderly or retirees to cover living expenses, healthcare costs, or other long term financial needs.

1. Residential property registered under the applicant’s name (joint ownership allowed for joint applications).
2. Property must be unencumbered, not the subject of caveat or hibah.
3. Non-primary residences are eligible.
4. Property must have fire or home insurance/takaful coverage.
5. Only one (1) property is allowed per application at any given time.
6. Non-flood prone or landslides areas.

A non-primary residence refers to any additional residential property owned by you and/or your joint applicant that is not the main home where you and/or your joint applicant currently live.

At present, only properties within the Klang Valley (including Putrajaya) are eligible. The SSBT rollout is being implemented in phases, beginning with the Klang Valley, with planned expansion to other cities and states in subsequent stages.

Yes, both landed and non-landed properties are accepted.

There is no limit on the property value. However, the payout is calculated based on
a maximum property value of RM3.0 million for landed properties and RM1.5 million for high-rise properties.

Yes, both freehold and leasehold properties are eligible. For leasehold properties, the remaining lease period must be at least 60 years at the end of the loan term.

No, we only accept properties that are fully paid off, unencumbered, and mortgage-free. Additionally, the property must be free from any encumbrance, not the subject of caveat or hibah.

Yes, your property must be covered by fire or home insurance. The initial insurance premium can be included in the loan amount. For subsequent renewals arranged by Cagamas, the premium may be deducted from the monthly disbursement, subject to your consent.

Properties located in areas prone to floods, landslides, or other natural disasters are considered high-risk and are not eligible under SSBT. The final determination of your property's eligibility is based on the valuation report provided by our panel property valuer.

The total payout depends on several factors, including your property's value, location, type (e.g., detached, semi-detached), and the loan tenure. To get an estimated payout amount, please use the SSBT Calculator published in our website at https://ssbt.cagamas.com.my/ssbt-calculator.

No. SSBT does not offer a full lump sum payout at the start. Instead, you can opt to have either monthly payouts or a combination of a partial lump sum and monthly payouts. This structure is designed to ensure stable cash flow throughout the loan period.

Yes, the monthly payout is fixed and remains the same throughout the loan term.

Yes, both the monthly payout and any partial initial lump-sum payout (if applicable) are subject to interest charge.

The interest rate depends on your property's location, type, and loan tenure. The rate is fixed throughout the loan period. To obtain an indicative fixed interest rate, kindly make reference to the SSBT Calculator published in our website at https://ssbt.cagamas.com.my/ssbt-calculator.

Yes, the interest rate is fixed per annum and is calculated based on monthly rest. This means the interest is computed based on the outstanding loan balance each month.

Yes, you will need to pay a property valuation fee, and if you decide to proceed with the application, a legal fee for loan documentation. However, these fees can be included in the loan amount, subject to approval.

No, repayments are not required during the loan tenure. You are only required to settle the loan in a single bullet payment at the end of the loan term (maturity date).

Yes, early repayment is allowed, subject to a one (1) month prior written notice. Please note that a penalty charge may apply if the settlement is made within the lock-in period.

The lock-in-period depends on your loan tenure:
• 5-year loan tenure : 2-year lock in period
• 10-year loan tenure : 4-year lock in period

If early settlement is made within the lock-in period, a penalty charge of 1% will be applied based on the agreed loan amount.

In the event of the passing of one joint applicant, the surviving applicant will continue to receive the monthly payout. Full details of the process and terms will be outlined in the Letter of Offer.

1. Upon receiving confirmation of your passing or the passing of the surviving applicant in a joint application, the monthly payout will be stopped immediately.
2. Cagamas based on best effort basis will contact your next-of-kin to provide an option for them to redeem the property by fully settling the outstanding loan amount.
3. If your next-of-kin chooses not to redeem the property or if Cagamas unable to contact any of them, we will proceed with the foreclosure process. The sale proceeds will be used to repay the outstanding loan.
   - If there is a surplus, it will be returned to your next-of-kin.
   - If the proceeds are insufficient, we will absorb the loss, and your next-of-kin will not be held responsible for the remaining loan amount.
   
   

Please note: If the property is sold via auction, it may sell for less than the market value,
and there may not be any remaining balance after repaying the total outstanding loan.

If the loan is not fully repaid at the end of the term, it will trigger an event of default, and Cagamas may initiate foreclosure of the property. This means you could lose ownership of the property.
However, family members or friends may help you retain the property by settling the outstanding loan amount, either through refinancing or other sources of funds.
If no one is able to take over the loan, we will proceed with the foreclosure process.

• Any surplus from the property sale will be returned to you.
• If the sale proceeds are insufficient to cover the outstanding loan, Cagamas will absorb the loss, and you will not be held responsible for the remaining balance.

Please note: If the property is sold via auction, it may sell for less than the market value, and there may not be any remaining balance after repaying the total outstanding loan.

If you plan to move into the pledged property during the loan tenure, please inform us, as it will then be considered your primary residence.

Please note that if the loan is not fully settled by the end of the term, there is a risk of losing the home you’re living in, as foreclosure may be initiated to recover the outstanding
loan amount.

Yes, you must undergo a financial advisory session with AKPK. Cagamas has appointed AKPK to provide independent financial advice for SSBT applications. They will be an independent party guiding you in understanding whether the product suits your needs, especially at retirement, and help you better understand the risks. However, the decision to proceed with SSBT remains solely at your discretion.

You may submit your application to Cagamas' office but before applying, please ensure that you have:

• Read through this FAQ and the Product Disclosure Sheet (PDS) for the SSBT product.
• The application form together with document checklist can be obtained from SSBT website at https://ssbt.cagamas.com.my/.

You will need to provide identification documents, copy of the land title/strata title/ Sale & Purchase Agreement/ Deed of Assignment (where applicable), and other relevant document together with the Application Form. Our Cagamas Representative will assist on this matter.

Once you submit your application, Cagamas will start preliminary evaluation and processing. After we complete the internal property valuation, we will inform you the following details for your review and decision:

Please ensure you provide a valid and reachable contact number and email address so that we can communicate with you effectively.

You can expect a Cagamas staff member to contact you within two (2) weeks after your application submission.

Yes, you can contact us to request updates or corrections. Please do so as soon as possible to avoid delays.

You can contact Cagamas via phone at 03-2262 1800 or email us at ssbt@cagamas.com.my.

Yes, Cagamas Representative will contact you directly if we require any further documentation or clarification related to your application.

Once you confirm and agree to the proposed amount and details via email, a Cagamas Representative will contact you by phone to:

• Reaffirm your decision
• Ensure that you have made an informed choice

• Confirm that you understand the risks and obligations associated with the SSBT product

It is important to provide a valid and reachable phone number so we can contact you promptly.

Once we have confirmed your decision via phone call, the Cagamas team will proceed with the following steps:

1. Property Valuation
   We will instruct our panel property valuer to conduct a physical valuation of your property. The valuer will contact you directly to schedule a site visit.
   
   
2. Application Processing
   After the site visit and upon receiving the valuation report, our team will begin processing your application for approval.
   
   
3. Offer Signing
   Once your application is approved, we will contact you to arrange for the signing of the Letter of Offer.

After you sign the Letter of Offer, you will proceed to complete the legal documentation.
This process will be handled by Cagamas panel lawyer, who will contact you and/or your joint applicant to arrange the necessary steps.
Once all legal paperwork is completed:

• Cagamas will disburse the partial lump-sum payment (if applicable) and/or your first monthly payout to your designated savings or current account.

Important Reminder:
Please ensure that any fees and charges agreed to be borne by you are settled upon signing the Letter of Offer to avoid delays in the payout process.

You can contact Cagamas by phone at 03-22621800 for any inquiries or updates regarding your application. We are pleased to be of assistance.

Friendly Disclaimer:
Once we receive your application, the review process typically takes between three to six months. Please note that the timeline may vary depending on the complexity of the legal documentation and procedures involved. Rest assured, we will provide guidance and support throughout each stage to ensure a smooth and efficient experience.

If your application is unsuccessful, we will notify you accordingly and, where possible, provide guidance on the next potential steps or alternative options.

You are welcome to reapply once the issues that led to the initial rejection have been addressed. We will be pleased to guide you through the process again and provide any necessary support along the way.

To ensure fairness, all applications follow the same review timeline to ensure fairness. Nonetheless, we remain committed to processing your application as efficiently as possible.