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 MRTA & MLTA is it a must?

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Seremban_2
post Jun 26 2012, 10:06 PM

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QUOTE(MaxWealth @ Jun 26 2012, 08:34 PM)
It is always good to have something to cover your debt in case of unexpected event.
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Meaning that if the borrower died of accident, then the insurance company settle of the house loan?

Added on June 26, 2012, 10:11 pmWhat if I am serving loan for PBB then refinance with Standard Chartered Bank. Can the MRTA/MLTA I bought at PBB use for standard chartered bank for the same property? from my understanding can.

This post has been edited by Seremban_2: Jun 26 2012, 10:11 PM
davidlow7
post Jun 26 2012, 10:31 PM

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QUOTE(Seremban_2 @ Jun 26 2012, 10:06 PM)

Added on June 26, 2012, 10:11 pmWhat if I am serving loan for PBB then refinance with Standard Chartered Bank. Can the MRTA/MLTA I bought at PBB use for standard chartered bank for the same property? from my understanding can.
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Check with your bank on this....

If I am not mistaken
Maybank's Etiqa will not allow this

But PBB's ING seems to be okay if I am not mistaken. Just change the beneficiary

This post has been edited by davidlow7: Jun 26 2012, 10:31 PM
MaxWealth
post Jun 26 2012, 11:15 PM

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QUOTE(messi.78 @ Jun 26 2012, 10:04 PM)
Hi.. Would like to ask for opinion here too. If we buy a house for investment, do we need to get a MLTA or MRTA? I mean if something bad happens, we can always sell the property right?
I think if the house is for own stay, then we must get a MRTA/MLTA.
Please correct me if I am wrong.
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Hmm, it is quite risky though. If say a person pass away, next kin need to fully paid off the mortgage then they only can claim the property. Or else, they might face issue selling the property.

If mortgage is not served, bank will lelong the property and since the price might be much lower than market value, next kin might as well get nothing too ;(

QUOTE(Seremban_2 @ Jun 26 2012, 10:06 PM)
Meaning that if the borrower died of accident, then the insurance company settle of the house loan?

Added on June 26, 2012, 10:11 pmWhat if I am serving loan for PBB then refinance with Standard Chartered Bank. Can the MRTA/MLTA I bought at PBB use for standard chartered bank for the same property? from my understanding can.
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Yes. Usually MRTA/MLTA covers death and tpd. In the event of death and tpd, insurance company will pay the bank and bank will release the title to next kin provided that a proper will is written.

Hmm, suppose can but subjected to SCB loan terms and condition.

However, i would like to highlight some issue.
Usually we refinance with a higher value. However, the MRTA reduces with time. Hence, kindly make sure the difference of coverage with the outstanding loan amount is manageable by next kin to avoid transferring issue.
peri peri
post Jul 17 2012, 02:31 PM

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QUOTE(lilac @ Jun 26 2012, 10:27 AM)
Dear all,
Recently when applying for my loan, my bank agent mentioned about buying a MRTA / MLTA for the loan. As my property does not cost much (<RM200k), must I buy one?
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if u want BLR - 2.4% then yes. but can opt for the minimum coverage
lynnfu
post Jul 21 2012, 03:34 PM

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Can you please explain what do mean "you can opt for the minimum"?

My loan with UOB is RM440,650 (75% loan). What is the minimum MRTA required to qualify for the best loan rate?

Also, I would like to know if MRTA premium is just a one-off small amount payment?


QUOTE(davidlow7 @ Jun 26 2012, 09:33 PM)
It shouldn't be compulsory... it is only compulsory to get lower -BLR. You can opt for minimum.

If you already have any existing life insurance that have some sum assured, you can choose to only buy the remaining amount to cover the rest/

Let's say you have a current insurance Sum Assured 100k for TPD/Death, and your property is 200k. You may just buy another 100k life insurance to work as MLTA. Combined together you will have 200k, it is enough for your loan amount. Can add in another rider for Critical Illness.
You can always buy more if you want, there is no limit since the beneficiary is on your choice, and how they want to spend it whether to pay for the house or others will be their choice. At least we know that we are not leaving a big burden to them in the event .... *touch wood*

Else if you are buying MRTA, you may need to do some calculation and ask what is the % set. Usually they are adjusted at the range of 6-8%.

The beneficiary has to be the bank for MRTA. MRTA usually covers only TPD/Death and not CI. You may need to double check with your insurance agent.

Hope that clears. smile.gif
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ecin
post Jul 21 2012, 08:18 PM

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QUOTE(lynnfu @ Jul 21 2012, 03:34 PM)
Can you please explain what do mean "you can opt for the minimum"?

My loan with UOB is RM440,650 (75% loan).  What is the minimum MRTA required to qualify for the best loan rate?

Also, I would like to know if MRTA premium is just a one-off small amount payment?
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5 years, one off payment
davidlow7
post Jul 22 2012, 02:20 AM

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QUOTE(lynnfu @ Jul 21 2012, 03:34 PM)
Can you please explain what do mean "you can opt for the minimum"?

My loan with UOB is RM440,650 (75% loan).  What is the minimum MRTA required to qualify for the best loan rate?

Also, I would like to know if MRTA premium is just a one-off small amount payment?
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As per what ecin mentioned above... But check with your banker for more accurate information.
hoks
post Jul 22 2012, 07:12 PM

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QUOTE(ahsoh @ Jun 26 2012, 10:04 PM)
If you plan to sell your prop once it has reached your target price after a few years then better forget about MRTA because it attach to the property. If you wanna insure your family in case something happen to you, just top up your life insurance will do.
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Sorry asking some noob question here, what do you mean by attach to property?

Does MLTA also attach to property?

If I buy MLTA, will they be any refund after i sell the property as I had read this link

http://www.horlic.com/mrta-vs-mlta-which-o...loan-insurance/

it stated 'at the end of tenure, house owner will receive a total premium through out the tenure'

This post has been edited by hoks: Jul 22 2012, 07:12 PM
Gr1mlock
post Jul 23 2012, 11:47 AM

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QUOTE(hoks @ Jul 22 2012, 07:12 PM)
Sorry asking some noob question here, what do you mean by attach to property?

Does MLTA also attach to property?

If I buy MLTA, will they be any refund after i sell the property as I had read this link

http://www.horlic.com/mrta-vs-mlta-which-o...loan-insurance/

it stated 'at the end of tenure, house owner will receive a total premium through out the tenure'
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MRTA is attached to your property meaning, it is not transfereable i.e. if your loan is for 40 yrs, it will tie up to your property for 40 yrs non-transferable. on the other side, MLTA does not tie to your property, whereby if u sell the property much earlier than say 40yrs loan, you'd be able to transfer the MLTA to your new property (subject to price variance).
hoks
post Jul 24 2012, 07:37 AM

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QUOTE(Gr1mlock @ Jul 23 2012, 11:47 AM)
MRTA is attached to your property meaning, it is not transfereable i.e. if your loan is for 40 yrs, it will tie up to your property for 40 yrs non-transferable. on the other side, MLTA does not tie to your property, whereby if u sell the property much earlier than say 40yrs loan, you'd be able to transfer the MLTA to your new property (subject to price variance).
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Understood now, thanks for your explanation. rclxms.gif
RedBishop
post Jul 26 2012, 10:00 AM

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some bank compulsory, some bank optional

Added on July 26, 2012, 10:00 amsome bank compulsory, some bank optional

This post has been edited by RedBishop: Jul 26 2012, 10:00 AM
WiredBrain
post Nov 19 2012, 09:23 PM

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If I'm getting MLTA, can i buy it at a later date after i buy the property? Or must i buy it together at the same time?
Cyndi lee
post Nov 20 2012, 03:25 PM

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Most banks persuade us to buy as it is actually bring benefit to us.
Chester
post Nov 20 2012, 03:36 PM

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Question, if I refinance to other bank, will the MRTA void? Or carry together to the new loan?
elchico
post Nov 20 2012, 05:29 PM

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QUOTE(WiredBrain @ Nov 19 2012, 09:23 PM)
If I'm getting MLTA, can i buy it at a later date after i buy the property? Or must i buy it together at the same time?
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Yes, you can buy it at a later date.
Buy you are bearing the risk, ie if anything happens to you now, bear in mind that your family is going to inherit your debts...

also, another disadvantage is that if you buy it at a later date, you have to pay for it separately... whilst if you buy it together during application, you have the option to finance your MLTA into your loan...



Cheers!
tsi_sam888
post Nov 20 2012, 09:21 PM

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QUOTE(Hunakadoo @ Jun 26 2012, 01:15 PM)
http://www.horlic.com/mrta-vs-mlta-which-o...loan-insurance/

can try this , quite useful
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simple yet useful..
thanks
kiwi_cream
post Nov 20 2012, 10:40 PM

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what is the difference if i buy the MRTA from insurance company instead of the bank? the pricing is the same right (for example buying directly from Great Eastern versus the bank offer Great Eastern MRTA)?

This post has been edited by kiwi_cream: Nov 20 2012, 10:42 PM
1282009
post Nov 20 2012, 10:59 PM

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QUOTE(elchico @ Nov 20 2012, 05:29 PM)
Yes, you can buy it at a later date.
Buy you are bearing the risk, ie if anything happens to you now, bear in mind that your family is going to inherit your debts...

also, another disadvantage is that if you buy it at a later date, you have to pay for it separately... whilst if you buy it together during application, you have the option to finance your MLTA into your loan...
Cheers!
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I think u mean MRTA? MLTA can't finance into loan, right?
elchico
post Nov 21 2012, 09:59 AM

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QUOTE(1282009 @ Nov 20 2012, 10:59 PM)
I think u mean MRTA? MLTA can't finance into loan, right?
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I mean MLTA... can finance partially (5-10 years) into the loan.. continued by the normal monthly premium thereafter..
Not all banks can do that though... i only know 1 bank which can thus far.. ;-)
orangesaw
post Nov 21 2012, 10:34 AM

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QUOTE(jalsrix @ Jun 26 2012, 02:08 PM)
if you plan to pay loan for more than 20 years, then buy.

if you plan to sell off after 3 years, then dont buy.
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is there necessary to buy just for 3 years only and if i want to sell it after 3 years?
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