I have plan to purchase one second house for my first house. and this will be my first time dealing with loan etc stuff which i have very less experience. after come to searching here forum

http://forum.lowyat.net/index.php?showtopic=989176&hl=

and asking fren getting some infomations. likely i know what is the direction i going to do. just would like to getting the last advice does this plan worth..

Planning: buy 2nd house 180k (target)
Down payment: 20k
Loan: 160k
Installment: 30 years (for age 30, could it possible?)

Loan type to be consider: Flexi
Current BLR 5.55; Bank offer -1.8 across all bank (been thought is new policy..is it true?); interest rate 5.55-1.8 = 3.75%
With MRTA (does basic package cover for DEATH - SICK and ACCIDENT)?
Which bank to take loan: Pending action to meet bank-bank officer

among so much bank there, which is the best? or certain bank at certain place is pushing different offer? my fren used to have -2.2 from standrad charge bank

based on my calculation using loan calculator at web site, monthly payment is around rm745 at 4% interest


does this worth n work...

worth for what? what should work?

i did a refinance on my apt... last June, got BLT - 2.05 for it. Refinance it for Rm100k. Sure worth it. Ppl renting it for rm650.. n monthly is rm 470++. Previously is abt 600++/month

Then in July 09, oso bought a landed property, got BLR - 2.25. loan amt is abt rm300k. loan coverage is 80%

all my loans is with CIMB, oso got few facilities with them, so more convenient. few of my fren got oso got -2.2 aroun tht figure...



Planning: buy 2nd house 180k (target)
Down payment: 20k + other charges i.e. MRTA, LAwyer fees (S&P & Loan Agreement), MOT, as banks are not giving Zero Entry Cost Loan anymore
Loan: 160k
Installment: 30 years (for age 30, could it possible?) yup possible,

Loan type to be consider: Flexi with daily rest (the best)
Current BLR 5.55; Bank offer -1.8 across all bank (been thought is new policy..is it true?); interest rate 5.55-1.8 = 3.75%
With MRTA (does basic package cover for DEATH - SICK and ACCIDENT)? yes
Which bank to take loan: Pending action to meet bank-bank officer up to you

This post has been edited by accitzone: Jan 3 2010, 09:02 PM

You only 30years old now, no problem to get 30years tenure loan. If you take flexi loan, i suggest the longer the better.

Yes, currently almost all bank also did not offer more then BLR-2% for sub-sales unit. Your's BLR-1.8% is fair enough for current offer.

MRTA is only cover for Death and Total Permanent Disability (TPD). Sick is not cover in MRTA. You can option for MLTA if you like to include the sickness (critical illness rider). You may pm me your D.O.B and loan amount, i can quote you the premium for MRTA and MLTA along with the detail of pros and cons between both mortgage insurance.

Pm me your email if you interested to get a mortgage loan calculator. I can send you a very useful flexi loan calculator. You can insert your salary, cash flow or extra payment each month and you can see how much you can save and shorten your loan. It can also show you the amortize table for the loan so that you can see the interest and principle at any month in whole tenure.

With regard to the MRTA, if I were you...and given me the option, I prefer not to take it. I'll make sure myself have a life insurance that is at least double the amount of the loan. But, that's me ler. Why? Hmm...let said 1 day I'm 'dead' (touch wood), and I still owe the bank let said 200k (home loan). The person who 'got' my money from my life insurance got an option...and more control...whether to pay it up the balance home loan and own the house...or do others thing with the cash...
Anyway...that is just for me ler.

Just my sharing...
cheers.

yes, no more zero cost, good if have, can safe 4-5k at least which bank u loan flexi?

Actually MLTA = life insurance

i see MLTA is life insurance. i have oledi with Pru

You can always get more quotation from different company so that you can compare which is more good to you. And also there is many many types of MLTA available in the market.

hmm ya, but my point is, if you already have a life insurance let said 500k (more than double of the home loan amount), that you have bought earlier, then I personally wont get MRTA or MLTA. For MRTA, it will be more expensive (for me ler) for my current age (compare to x years ago when I first bought my life insurance). And even if my life insurance is not double the amount of the home loan, i still can 'upgrade' my life insurance now....which is cheaper than getting a MRTA now - at my current age as compare to x years ago (assuming I didnt 'claim' anything from the life insurance yet).
But that is based on my calc with the home loan agent and also my current personal life insurance agent (separately).

Hi,

Like Kenaragorn mentioned that when a person already has a life insurance then no longer necessary pay for MRTA or MLTA? But life insurance doesnt cover for mortgage installment when one dies right? Please enlighten me. I already have one life insurance in Msia and one in Singapore, to buy another for housing will be a little over insured.

i also have a life insurance with GE, planning to buy house within 6 month, is it still compulsory to take MRTA?

Life insurance does not cover for the loan installment. But your family can use the money from your insurance to pay off the loan.

First of all, what's is your purpose when you brought both insurance? As normal it will be a family fund when somethings happened to you right?
And that's the amount of fund (let say RM500k) you wanted to give to your family, that's why you brought this 2 insurance.

So now, you getting another property worth RM300k (extra debt), if somethings happened to you, your family still have to continue pay the installment or the bank will claim your property. So your family can continue pay the installment for you (if your family can support without you), or they can use the fund you ready for them to pay off the loan. But this way the fund you ready for them (amount that you wish earlier) will be lesser by a lot. In this case will be RM500k - RM300k = RM200k left

So it's better to get a insurance just to cover the loan,that's why we call the insurance for mortgage = MLTA/MRTA and another life insurance for your family fund. Or alternately, you can combine it both in one policy by increase the sum assured.

So now, if you think with current 2 policy sum assure is enough to cover everything, then you may just waive the MRTA/MLTA. It's totally up to you.

Thanks onnying88,
Clarify a lot of my doubts now.

Welcome

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Added on January 4, 2010, 12:34 amCompulsory or not it's depend on the bank's loan package you apply. You can always look for others bank's offer that allow you to waive the MRTA.
As in my post #12 above, make sure the sum assure is enough to cover every things as you wish.

This post has been edited by onnying88: Jan 4 2010, 12:34 AM

can i buy a MRTA, lets say like 3 years after i bought the house?

Yes, you can buy MRTA or MLTA anytime as you wish.
Just contact me if you interested to get the quotation or detail.


This post has been edited by onnying88: Jan 6 2010, 06:57 PM