Islamic Mortgage Guarantee Programme (IMGP)

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What is IMGP?

  • IMGP provides ‘first loss’ protection on a mortgage portfolio while the mortgage assets remain on the Originator’s books through Cagamas’ wholly owned subsidiary, Cagamas SRP Berhad (CSRP).
  • This programme is formulated under Shariah principle of Kafalah and Wakalah.

Product Features

  1. Product Description
    • CSRP will provide ‘first loss’ protection to mortgage originators in Malaysia on a portfolio basis. No individual financing can be taken out from the pool other than natural redemption or amortisation to below the protection threshold.

  2. Eligible Financing Type
    • Standardised and centralised guarantee programme offered to banks for Islamic mortgage financing.
    • Islamic residential mortgage financing complying with the standard Eligibility Criteria (EC).
  3. Guarantee Coverage
    • Current financing-to-value (FTV) ratio of the Mortgaged Property as at the Guarantee Date is not more than 95%.
    • Initial guarantee amount is the difference between the current financing amount and the protection threshold amount (e.g. 79.9% of property value at Guarantee Date).
    • The guarantee amount will reduce in accordance with the individual financing amortisation schedule which will be determined at the Guarantee Date.
    • The guarantee amount is the difference between the “scheduled” outstanding principal balance and the protection threshold.
  4. Lapse of Protection

    Protection will lapse automatically once:

    • The “scheduled “ outstanding principal balance of the financing falls below the protection threshold amount (e.g. 79.9% of the property value as at Guarantee Date) by way of financing amortisation or discharge.
    • Non-compliance with Representation, Warranty and Eligibility Criteria.
    • Non-payment of guarantee fee by the Originator.
    • Payment of Claim Amount by Cagamas SRP to the Originator.
  5. Guarantee fee
    • No guarantee fee for Islamic mortgage financing.
  6. Wakalah Fee
    • This fee is applicable for IMGP.
    • Wakalah fee is either a one-off payment for the entire protection tenure or on an annual fee basis paid by the Originator.
  7. Protection Exclusion
    • Exclusion of protection includes events of fraud, misrepresentation of the borrowers/obligors and/or the loan/financing originators, breach of specified eligibility criteria of the loan/financing as at the Guarantee Date and/or breach of representation or warranty by the loan/financing originators, etc.


  • Transfers credit risk
  • Capital relief is based on BNM Risk Weighted Capital Adequacy Framework
  • Facilitates management of portfolio concentration risk
  • Improves Return on Risk Weighted Capital
  • Improves earning stability
  • Limits credit exposure to an acceptable level
  • Mortgage assets remain on the balance sheet