Remortgage is the process of taking out a new home loan for a fully paid-up house. It’s a popular option for homeowners who want to access additional funds or get better interest rates on their home loans.

However, for retirees or older individuals in Malaysia, getting a home loan can be challenging due to age restrictions imposed by some banks. This can be frustrating for those who own a fully paid house and want to access the equity in their property.

In this article, we’ll answer a question for old-age clients who may face difficulties getting approved for a home loan in Malaysia.

Whether you’re a retiree looking to access additional funds or a younger individual looking to help your parents, this article will provide you with valuable information on remortgage home loan and how it can work for you.

Question for remortgage home loan

Now let’s hear from our client about a remortgage home loan question.


Hi Melissa. I’m a retiree & would like to explore refinancing my fully paid house. 

If my age (67) does not qualify me for the home loan, I can include my son (32 yrs old) as a Co-borrower. May I get some guidance on this pls? 



Jane is considering obtaining a home loan against her fully paid-up property, which is uncommon. Typically, retired individuals prefer to pay off their loans through years of work or by utilizing their EPF accounts. This is done to avoid any future financial burdens or commitments post-retirement.

And we understand that. 

However, there is a different perspective to consider.

We understand that it can be challenging for banks to approve a home loan for a property fully paid off and under the name of a retiree.

If the property has been fully paid off, it can be difficult to leverage it in the future, similar to Jane’s current situation.

Maybe this is the solution

Instead, using this method may be wiser.

A borrower using the cash to offset the home loan interest but not settling the loan entirely could be the best option. 

This can be done if you have semi-flexi or full-flexi home loan.

Furthermore, both of these home loan products come with redraw features, allowing you to withdraw any extra payments made to the bank.

By using this method, in case of an emergency, the cash can be withdrawn instead of applying for a new loan again.

What is your thought about this?

Will you choose this?

Answering Jane’s question about Remortgage Home Loan

So, this is our answer to Jane’s question.

Hello Jane! 

Thank you for your question.

Firstly, financing your fully paid house means you want to take out a new loan on a fully paid house, or we call it to remortgage.

Some banks in Malaysia may offer a margin of up to 80% of the property market value for fully paid houses. 

For example, if the property market value is RM500,000, you may be offered up to RM400,000 if you qualify.

RM500,000 x 80%= RM400,000

Regarding your age, It’s worth noting that some banks in Malaysia have age restrictions on home loans, which may make it difficult for retirees to get approved for a home loan.

Additionally, Malaysia’s maximum home loan tenure is typically 35 years or up to 70 years of age, whichever is earlier.

If you cannot qualify for a home loan alone, consider adding your son as a co-borrower. The bank may grant a longer tenure of around 20-35 years.

Having a co-borrower with a stable income and good credit score can increase your chances of getting approved for a loan. 

However, it’s important to remember that your son will be equally liable for the loan, and any missed payments will affect both of your credit scores.

We hope this answer all your questions.

We wish you the best of luck!


Online Mortgage Consultant

Should I remortgage now?

Whether or not you should remortgage now depends on your specific financial situation and goals.

Remortgaging can be a good option if you want to access additional funds, lower your interest rate, or consolidate your debts. 

Before remortgaging, it’s important to do your research and compare different home loan packages from various banks. 

You should also consider any fees or charges associated with remortgaging and factor them into your decision-making process.

Furthermore, it’s important to assess your financial capability to repay the new home loan monthly. 

If you are already struggling to repay your current loan, a remortgage is an option for you.


In conclusion, whether or not you should remortgage now depends on your individual circumstances. 

If you need more clarification about the process or need personalized advice, consider consulting a loan advisor or mortgage consultant. 

They can provide you with expert advice and help you make an informed decision.

You can contact us for more information on how we can help you find the best remortgage home loan for your financial situation.

You can contact us here.


Before you go, read this article:

Refinancing Home Loans in Malaysia: How to Save Money and Unlock Your Property’s Potential






Online Mortgage Consultant

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