Cagamas Berhad (“Cagamas”) inked a MoU with Affin Bank Berhad and Affin Islamic Bank Berhad (“AFFIN”) to introduce a unique financing solution under the reverse mortgage (RM) product stable. This strategic partnership aims to broaden the range of financial support available to senior homeowners, facilitating easier access to enhanced reverse mortgages through AFFIN’s extensive branch network and mortgage hubs. The operational rollout for this collaboration is scheduled for end Q1 2025, with initial availability in selected cities. Meanwhile, AKPK and EPF will remain as the strategic partner for Cagamas’ existing Skim Saraan Bercagar and Skim Saraan Bercagar Islamik (SSB).
By prioritising greater financial inclusion, this initiative seeks to cater to the needs of sophisticated and financially savvy senior homeowners who wish to monetise their assets. The enhanced RM solution will retain some of the key features from the existing SSB product, allowing homeowners to access the value of their homes over a fixed term while maintaining ownership throughout the financing tenure.
The MoU was signed by Encik Kameel Abdul Halim, President/Chief Executive Officer of Cagamas, YBhg Dato’ Paduka Syed Mashafuddin Syed Badarudin, Chief Executive Officer of Affin Islamic Bank Berhad, and Encik Irwin Mohd Eusoff, Group Chief Corporate Strategy & Sustainability Officer of Affin Bank Berhad. The signing ceremony was witnessed by YBhg Dato' Rozalila Abdul Rahman, Board of Director, Affin Bank Berhad, Encik Suffian Baharuddin, Board of Director, Affin Islamic Bank Berhad, Encik Mohammad Fairuz Mohd Radi, Executive Director, Group Community Banking, Affin Bank Berhad and Encik Abdul Hakim Amir Zainol, Chief Business Officer of Cagamas.
This collaboration marks a significant step towards enhancing financial support for senior homeowners in Malaysia. Stay tuned for more updates as we move closer to the rollout in Q1 2025.