KUALA LUMPUR (July 8, 2026): Malaysia's national mortgage corporation, Cagamas Bhd, has introduced a new reverse mortgage programme known as Skim Saraan Bercagar Bertempoh (SSBT) to help senior homeowners unlock the value of their residential properties and supplement their retirement income.
The scheme targets homeowners aged 60 to 70 and will initially be rolled out in the Klang Valley before being expanded to other locations.
Converting home equity into retirement income
SSBT allows eligible homeowners to convert part of the equity in their homes into a combination of:
An upfront lump sum payment.
Fixed monthly income over a predetermined payout period.
Unlike a traditional property sale, homeowners can continue living in their homes while receiving income generated from the value of their property.
The scheme is designed to provide retirees with greater financial flexibility without requiring them to dispose of their homes immediately.
Addressing Malaysia's ageing population
According to Cagamas, the introduction of SSBT comes as Malaysia continues to experience rapid population ageing.
Malaysia is already classified as an ageing society, with at least 7% of its population aged 65 and above.
By 2045, the proportion of people aged 65 years and above is expected to double, transitioning Malaysia into an aged society.
At the same time, many retirees continue to face financial challenges, with a significant number of senior citizens living with limited retirement savings.
Supporting financial security in retirement
Cagamas Chief Executive Officer Kameel Abdul Halim said the scheme aims to provide a practical solution for retirees by allowing them to generate income from an asset they already own.
By converting housing wealth into regular cash flow, homeowners can strengthen their financial resilience while continuing to reside in their existing homes.
The programme is intended to help retirees maintain their quality of life and achieve greater financial security during retirement.
Settlement options after payout period
Once the agreed payout period ends, homeowners or their families will have several options to settle the financing arrangement, including:
Selling the property.
Repaying the outstanding amount through the homeowner or heirs.
Cagamas has not yet provided details regarding the treatment of situations where the property's market value falls below the outstanding financing amount at the time of settlement.
Second reverse mortgage product
SSBT is Cagamas' second reverse mortgage offering.
The corporation previously introduced Skim Saraan Bercagar (SSB) in 2021, targeting homeowners aged 55 and above.
Under the earlier scheme, repayment is generally only required after the death of the borrower or the surviving joint borrower.
The new SSBT differs by providing fixed-term payouts and structured settlement options upon completion of the agreed financing period.
Key Takeaways
Cagamas has introduced Skim Saraan Bercagar Bertempoh (SSBT), a new reverse mortgage programme for homeowners aged 60 to 70.
The scheme enables seniors to convert the equity in their homes into an upfront payment and fixed monthly income while continuing to live in their properties.
SSBT will initially be launched in the Klang Valley before wider expansion across Malaysia.
The initiative responds to Malaysia's rapidly ageing population and the growing need for sustainable retirement income solutions.
Homeowners will have settlement options after the payout period, including selling the property or repaying the outstanding amount through themselves or their heirs.
Cagamas has yet to clarify how any potential shortfall would be handled if the property's market value falls below the outstanding financing balance.
From a property perspective, reverse mortgage products such as SSBT demonstrate how residential property can serve not only as a place to live but also as a financial asset that supports retirement planning, particularly for homeowners with substantial property equity but limited cash income.
