Can a borrower surrender or terminate the loan during his/her lifetime?
Borrower may surrender or terminate the agreement by settling or paying off the outstanding loan amount accumulated until that point of time.
What happens to the balance payout if a borrower passes away just a few years after signing up for the Skim Saraan Bercagar Loan? Will it be passed on to the next-of-kin?
In this situation, the standard loan termination process will take place. Below are the options available to the next-of-kin.
Settle the outstanding Skim Saraan Bercagar Loan
The outstanding amount will depend on the loan tenure. After settling the outstanding amount, the property will be passed back to the next-of-kin.
What are the additional costs for the signing of the reverse mortgage agreement and who would bear the costs? (E.g. stamp duty, legal fee, loan insurance)
Upon signing up for the Skim Saraan Bercagar Loan, here are some expenses that will be incurred by the borrower.
Initial upfront expenses:
- One-Time Recourse Waiver Fee*/One-Time Facility Fee
- Legal fees
- Valuation fees
- Property insurance
- Administration fees (if any)
- Servicer fees (if any)
The initial expenses above can be financed by the Skim Saraan Bercagar Loan.
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