Hi lyn members,

I signed a loan offer letter recently and during the session, my banker advice me to take a house insurance. So he suggested either MRTA or MLTA. According to him, MLTA have to pay monthly or yearly where else MRTA only pay once. So i decided to pay MRTA instead sincce i cant afford the monthly payment of MLTA despite the benefits of it. But im not sure how to calculate MRTA. Can anyone show me? Heres my details.

Age : 25 years old

Loan: RM250000

Thank you.

loan tenure?
from developer or subsale?

You can find a calculator for MRTT (= MRTA) here

http://cb.cimbislamic.com/index.php?ch=gen...pt=cimb_islamic

but your bank may use a different rate, so the final premium can be different by +-10%.

Or you can visit the govt bahagian pinjaman perumahan website. Several banks have their MRTA calculator there.


For young pople MLTA will be a better option, if get afford the cashflow.

Is sub sale... does it affects the value of MRTA as well?

Insured Tenure = construction period + loan tenure
Definately premium higher for developer unit

eg. 200k loan, 10yrs tenure, 4.4% interest, apartment
Subsale: 1304
Developer: 1866 (construction 3yrs)

eg. 200k loan, 20yrs tenure, 4.4% interest, apartment
Subsale: 2848
Developer: 3494 (construction 3yrs)

eg. 200k loan, 30yrs tenure, 4.4% interest, apartment
Subsale: 4618
Developer: 5500 (construction 3yrs)

i use the simulator from my insurance agent. you can actually get the calculator online.

This post has been edited by kenty: Sep 11 2012, 10:53 AM

but i cant afford the cashflow thats why i decided to take MRTA instead...

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Added on September 11, 2012, 12:24 pmBased on the above calculation... seems like for my case i need more than 5k... can include in my loan right?

This post has been edited by steve88: Sep 11 2012, 12:24 PM

Bro, this is really useful!
Wondering if u know any handphone apps that is available. Mind to share?!
Thanks!

90% of the MLTA in the market, cannot be financed into the loan..
But my bank allows optional financing of MLTA into the loan... for afew years..
This is purely to help those that prefer MLTA, but do not have the means to afford MLTA for the first few years of their investment..


Cheers!

Mind to share which bank u use which provides that kind of option? Im actually prefer MLTA as well but just couldnt afford the payment too..

I booked a project unit at398k price.Here is the loan details i got
-Conventional(DIBS package)-2.4 BLR
-loan 358,740+MRTA premium RM830
-MRTA covered for RM100k(sum insured)for 8 years(include 3 years construction period)
-Loan tenure@40 years
Monthly installment@RM1,548
-lock in period@3years&2% on approved loan ammount

is this loan worth it?

You may not take full tenure if you plan to settle the loan earlier or sell it later (eg. 10yrs)

I would suggest you to take an insurance from insurance agent since you prefer MLTA.
a simple non participate 30yrs term insurance with 200K sum insured is around RM770 per year.
If you want to include critical illness, the premium will be double.
or an investment link policy with death, TPD, critical illness & waiver premium upon dianognes critial illness or TPD is around RM1500 per year
But, please get all the plan naration from your agent to know the risk especially for Investment link before you choose the best plan for you.

hi bro,

do you know that by insuring MRTA sum assured of only RM100k, and for a duration of 8 years... unless you have huge life insurance to cover that, you are seriously under-insurring for your property.. So meaning you are transferring all the risk to your immediate family.. And coupled with 8 years tenure... as you may know, MRTA is on a reducing scale.. ie Sum assured simulation... Yr 1 - RM100k, Yr 2 - RM87.5k, Yr 3 - RM75k... Yr 7 - RM12.5k, Yr 8 - RM0k... So even if something happens to you on Yr 7, whilst you may think you are still within the assured period, your actual insured amt might be minimal.

even if you have life insurance... previously, you intend to leave RM300k for your family, but since you take this RM300k as part of your MLTA, in effect, in case something happens to you, you are correct, your property loan will be fully settled, by way of MRTA and Life insurance, but then the original RM300k intended to leave to your wife for normal expenses, would have been gone..so you leave them nothing in cash, now that your insurance is being used to cover the loan amt...

Some may argue that, for investment, as they intend to flip, don't need to buy... its the same issue... if you have the benefit of hindsight.. and you know nothing is going to happen to you, then fine - don't buy at all... but no one knows the future, and all this is about risk management. ur taking a short term gamble with your family future...

Some may also argue that, hey - this is for investment, worst case scenario, sell the property! without this investment, your family already have a house to live in... true as it may be, but imagine this... your family already lost the bread winner, and someone dear to them... already very distraught... now have to face with the harrassment from the bank to either settlement, refinance into their own name, sell the house, or lelong! All this brings unneccessary stress to your wife - on top of the heartbreak of losing you!!

I'd never bear myself to let my loved ones to go through that torture... Would you?

Thanks for the advice... the agent quoted me RM2275 per year based on 40 years loan. thats why i dont want to take MLTA. cant afford it...

If you decided to take MRTA & finance it. Below is the additional monthly repayment for your reference

MRTA, 200K, 30yrs, 4.4% interest

Premium : RM4600 (One off payment)
Additional Monthly Repayment: RM23 (RM276 yearly)

This post has been edited by kenty: Sep 11 2012, 03:32 PM

U mean total is RM4600 then RM276 yearly is if i include MRTA into my loan is it? 276 is include interest rate?

Why is it using the CIMB MRTT excel sheet my one off payment is about RM1020 whereas the mortgage specialist quoted RM2300??

5 years
rm315k
28yo male

looking into mrta to appeal for -2.45. worth it?

yes, RM276 included interest.
which means you've to pay RM276x30yrs = RM8280 (included interest of RM3680)

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Added on September 11, 2012, 4:07 pmfrom the amount calculated, most probably as below

RM1020 (not included construction period)
RM2300 (included 3 yrs construction period, which is totally 8yrs)

This post has been edited by kenty: Sep 11 2012, 04:10 PM

Problem is... its a subsale unit. unless she forgot to pick 0 deferment...

then you really have to check with her.
I'm using simulator from ING, giving similar result as CIMB Takaful

Yeah thanks for your link btw! Could you also give us the link for the ING simulator? Much appreciated!

unable to attach excel directly.
This is the link
http://www.insured-life.com/ing-home-loan/...g-malaysia.html

Hi sir, sorry for necro this post but do u mind to share the mrta calculator link for me? Tqvm.

Hi guys, sorry for reopening this thread but which do you think is a better deal for the following offers:

PBB (semi flexi with mandatory MRTA financing for 13 years)
processing fee
212.00

monthly service fee:
n/a

indicative valuation fee:
~1400

rate:
1st year 4.10% (fixed)
subsequent: BR(3.52%) + 0.70% =4.22%

MRTA:
need to take coverage
of 13 years of 451000.00=7997
Total=458997

1st year=2220.00 (12 months)=26640
Subsequent=2250.00 (348 months)=783000

Grand total for entire tenure:
811252

HSBC (full flexi):
processing fee
212.00

monthly service fee:
10.60 (4070.40 for 32 years)

indicative valuation fee:
1634.20

rate:
BR(3.64%) + 0.76%=4.40%=2229.92 (384 months/32 years)=856289.28

MRTA: not mandatory

Grand total for entire tenure:
861993.88

Hi...i have more details on MRTA MLTA.most of my clients choose MLTA.

anyone can help me where can find online or offline MRTA calculator? I really can't find it rite now! Help me!

Bump...i also need MRTT calculator