Is the Skim Saraan Bercagar Loan open for leasehold properties or properties built on leasehold land?
Yes, we allow for leasehold properties with at least 90 years of lease remaining.
Otherwise, borrower may need to renew the lease to be eligible.
Is a gradually increasing monthly payment possible for borrowers to manage the rising cost of living due to long-term inflation?
Our current Skim Saraan Bercagar Loan does not allow for any changes in the monthly payout amount. The monthly payout amount is fixed from the start of the loan tenure throughout the lifetime of the borrower(s).
Is there any requirement for fire/natural disaster/damage insurance coverage for the property?
Yes, fire and home insurance for the property is compulsory to be undertaken by the home owner. This is similar to the requirement for normal mortgage loans by banks.
After the borrower passes away, would the loan continue to accumulate interest until the property is finally sold?
Upon the demise of the borrower (or last surviving partner borrower for a joint Skim Saraan Bercagar Loan), the loan would NOT accumulate any more interest. It will cease with the last disbursement made on the monthly payout.
One of the conditions of the loan is that the property must be the main residence of the borrower.
We allow for a flexible arrangement for the borrower to declare that their next-of-kin will be staying in the property or to rent out the property. However, in both instances, it must be due to specific circumstances such as medical or health conditions, with proof of medical certification.
If the borrower does not have any next-of-kin, what would happen to the excess of sale proceeds over loan amount after the borrower passes away?
The borrower would still need to name a nominee or next-of-kin before signing up for the Skim Saraan Bercagar Loan.
If a Skim Saraan Bercagar Loan is under the name of both husband and wife as joint borrowers, what would happen if they get divorced during the loan tenure?
In this circumstance, the joint borrowers will need to discontinue the Skim Saraan Bercagar Loan by selling the property to settle the outstanding loan amount at that point of time.
One of the conditions for a joint Skim Saraan Bercagar Loan is that both borrowers will need to be joint owners of the property
Yes, the partner will need to be joint owner of the property to be eligible.
Current owner would need to register the new owner with the Land Office to add the additional owner of the property. It will usually take about 1-2 months, subject to Land Office’s approval.
For joint-borrowers, would the property be sold if one of the joint-borrowers passes away and the surviving joint-borrower has to move out as a result?
No, the surviving joint-borrower would be able to reside in the property until death.
For joint-borrowers, what happens to the monthly payout when one of the joint-borrowers passes away?
The full monthly payout will still continue to be paid to the surviving joint-borrower until death.
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