Affin and Cagamas Berhad Sign Memorandum of Understanding to Provide Innovative Reverse Mortgage Product for Senior Homeowners in Malaysia

KUALA LUMPUR: AFFIN Group ("AFFIN" or "the Group") signed a Memorandum of Understanding (MoU) with Cagamas Berhad ("Cagamas") to support senior homeowners with a unique financing solution under the Reverse Mortgage product stable. This partnership positions AFFIN as the first banking institution to support Cagamas' offering, reinforcing its dedication to providing flexible and impactful financial solutions that benefit the community.

The Reverse Mortgage product, developed by Cagamas, is tailored specifically for senior homeowners who have fully paid off their mortgages, allowing them to meet their lifestyle needs while retaining homeownership. It offers an alternative and flexible financing solution, providing seniors with steady cash flow over a fixed period. This structure gives seniors control over their loan term, allowing them to address immediate financial needs without a lifetime commitment. Whether covering medical expenses or day-to-day living costs, this product supports the unique financial needs of senior homeowners with flexibility.

The MoU between AFFIN and Cagamas signifies a shared commitment to provide senior homeowners security and stability while serving as a pre-emptive measure to help them plan for their future. AFFIN will enhance awareness and broaden access to Cagamas' Reverse Mortgage product, bringing valuable benefits to senior homeowners who have fully paid off their home financing or loans. Subject to finalisation of operational arrangements between AFFIN and Cagamas, rollout for this collaboration is scheduled to begin from end of Quarter One 2025, with initial availability in selected cities. Prospective applicants are encouraged to check with their nearest AFFIN Mortgage Hub for available details.

Chief Executive Officer of Affin Islamic Bank Berhad, Dato' Paduka Syed Mashafuddin Syed Badarudin said "We are honoured to collaborate with Cagamas on the Reverse Mortgage product, a transformative financial solution that supports our senior homeowners. This partnership reflects our commitment to providing innovative financial solutions that enhance the well-being of our community. Through Cagamas' Reverse Mortgage, together we aim to bring greater financial security and peace of mind to senior homeowners, empowering them to enjoy their retirement years in the comfort of their own homes.

While Encik Kameel Abdul Halim, President/Chief Executive Officer of Cagamas said "This MoU with AFFIN reinforces Cagamas' commitment to addressing Malaysia's aging demographic with solutions that are both practical and forward-looking. Our reverse mortgage product provides a dignified and flexible way for seniors to access financial resources from their home equity. This partnership will allow us to expand our reach and provide direct support to senior homeowners who deserve financial stability and autonomy in their retirement years."