KUALA LUMPUR (Jan 14): A new scheme aimed at helping elderly homeowners to fund their retirement will be open for applications to eligible homeowners beginning Monday (Jan 17).
In a statement on Friday (Jan 14), the national mortgage corporation said Skim Saraan Bercagar (SSB) allows retirees aged 55 and above to borrow against the value of their fully paid homes and convert it into a steady monthly cash payout throughout their lifetime to supplement their retirement funds.
“For the pilot launch of the scheme, the SSB loan will be offered at a fixed rate financing of 5% per year on the outstanding loan amount and a one-time upfront recourse waiver fee of 1.75% on the initial property value,” it added.
Other key features of the scheme include:
• Under a fixed rate offering, the scheme is able to offer retirees a higher monthly payout, as it is able to withstand interest rate fluctuations throughout the entire SSB loan tenure;
• The monthly payout disbursement is a lifetime commitment by Cagamas, subject to terms and conditions. Life expectancy is also increasing annually, given the progress in medical science and healthier lifestyles;
• No repayment during the lifetime of the borrower. Repayment is only due upon the demise of the borrower or last surviving joint borrower; and
• No recourse to the estate in the event of insufficient proceeds from the sale of the property to repay the outstanding balance of the SSB loan.
According to Cagamas, interested applicants may schedule an appointment at any of the two Employees Provident Fund (EPF) branches here and Petaling Jaya, or visit their website at www.ssb.cagamas.com.my.