Even if you take another insurance... the beneficiary is still the bank, because your estate will have to pay your debts in the event that you pass away before loan finish.

Once you took a loan, they own your assets to that amount. Insurance name whoever as beneficiary also, they don't take priority over the debt you have accumulated.

Thanks for the input again! As I am still learning, so appreciate the guidance / comparison given.

I think if I take into account of the MRTA being included into the financing, the amount would turn out to be RM40k+, banker also did the same calculation for me.

Whereas for MLTA, I have the option to pay for RM4k/annum for 10 years, 600k coverage, in which its sort of investment linked and "supposedly" cover up to 35 years as long as there is still cash value within. On top of that the coverage amount does not reduce also.

So assuming that if I have to pay for 10 years that would be 40k total, and if I assume worst case scenario that the funds would run out (hopefully sometime after 25th year onwards), then the extra amount that I would be paying, I think the risk is bearable for me, as I also expose myself to possibly positive returns also where the cash value still available after the coverage expires.

Would this thought process make sense? As I believe MLTA's beneficiary is whoever that I name, and its credit proof, so there's no immediate freezing of the funds to clear the property's purpose.

Sorry, I'm not qualified to comment on the benefits of mrta vs mlta. However, the projection of 35 years of coverage for that 40k premium paid macam overly optimistic in my layman's opinion, especially when you compare to the mrta at 40k which offers reducing benefit.

At the moment, I do not have the exact calculations with me, but it seems that its entirely possible.

Maybe others can share their thoughts too.

But I think at this juncture I would think that MLTA would be a better choice for me until someone can share their thoughts otherwise.

Eh? I thought if MLTA the beneficiary is anyone that you nominate?

For OLTA (PBB) or CLTA (RHB) - I think have to nominate both bank and nominee, but still got difference between MRTA since no freezing occurs

At least the family still got the say to whether continue paying the property, while taking up the life insurance payout, then decide to sell it for a better price if they have holding power.

The loan officer for UOB explained to me when I asked that nominee for loan-related insurance must be the bank. However I got it reduced to very small sum because I showed that I already have my own life insurance worth roughly the total amount of loan existing. Those of course the beneficiary is my loved ones.

But larger picture, your debt to the bank lasts after you pass away, and the property belongs to the bank until paid off. When you pass away, the bill comes due and must be paid by your estate in some manner. The insurance means its paid in cash. If the insurance passes to your loved ones instead of the bank, they do not have a loan relationship with the bank and will have to either redeem the property for remainder owed or renegotiate with the bank for payment terms. Excepting joint loans of course.

Hence in my view the insurance beneficiary is always the bank as they hold the title deed. Assuming of course that you want to keep the house (which would almost always be the case for own stay).

I see, I can understand your point of view, thanks for the input.

Sought for bank explanation on the MLTA, its very bank dependent. For my question, 2 bankers agreed that the nominee can be solely your family member (provided that the coverage - term and sum is agreed by bank during the loan agreement process).

Family member can still pay via bank in / deposit to the account should I pass away. Assuming that if I don't spend lavishly and irresponsibly, I believe that my liquid funds (obviously assigned to family member in will) should be able to pay of at least a period of time until the disbursement of the MLTA and my other insurances. While going through the MOT, they can also decide if they want to keep it or not. As I may have more than 1 or 2 properties, hence there is such choice and no restrictions since they are not living in it.

Let's say I am buying a RM100,000 house. I have RM100,000 cash to buy the house but I don't want to tie up my money in the house. Instead of paying cash for the house, I opt to take a loan instead (in other words, I prefer to have liquidity), so what type of loan should I get? and which bank is better?

Hello all,

I have quick question. How much would be the practical or acceptable percent of duit kopi to kawtim mortgage loan?

Thank in advance.

I have another quick question - what is your expectation when you ask advise for corrupt practices on a public forum?

I just want to clarify my earlier message. I did not ask or request advice on any corrupt practice. Did you fully read my question? I clearly stated that I was asking about the loan percentage, not requesting or suggesting any corrupt actions, as you seemed to imply.

I appreciate advice focused solely on the loan process itself.

Thank you

If everything is above board, just ask your loan officer. In fact as we always suggest here, you should apply with multiple financial institutions, so you should have a half dozen phone numbers you can whatsapp to and ask, from there can compare whether there's significant difference in rates.

But of course, if you're talking about 'duit kopi' and 'kawtim' then you're not actually asking about 'loan process'.

Hi sad boi, mind sharing your banker's contact? interest to apply for maybank full flexi

Hi All Sifu,

Need to clarify somethings about the Fully Flexi capping.

Is the capping apply on the loan amount or the fund inside the current account?
If capping 70%
1. Loan 1 mil, current account 800k, only can save 700k interest
OR
2. Loan 1 mil, current account 800k, only can save 560k interest

TQ in advance.

It's the first one, my banker confirmed this with me.

i.e. in your case, loan amount 1mil, client place 1mil into current account, max saving is 1mil * 70% only.

loan approved.

is the interest rate good? is MRTT a compulsory thing to have for the loan?

Approved Bank: XXX
Approved Loan Amount: RM 727,200
Mrtt: RM 4,400
Total Loan Amount : RM 731,600
Loan Tenure: 27yrs
Interest Rate: 3.8%
Monthly Instalment: RM 3,620
Margin: 90%
SPA Price: RM 808,000

This post has been edited by westlife: Nov 15 2024, 01:11 PM

I would like to check whether bank will approve my loan or not as i currently only have ptptn didn't have any credit card. I paid off my car loan 2 years alot. Ptptn paid on time, do i need to apply credit score for bank to review? Or this ptptn is sufficient enough.
Ccris now is 0 score.

This post has been edited by skyvisionz: Nov 16 2024, 12:19 PM

No one can give you confirmed answer on that. In fact the online advise (build credit score) is centered on American banking system. For Malaysian system, it seems for loan they will look more at your income level and debt servicing ratio. In the end only the bank will know, so just approach bank officer to inquire.

thinking to refinance my house, any zero-moving costs loan to recommend?

house price around 900k, current outstanding around 620k

In that case, if loan amount is 1mil, if place 100K will it be 100k saving or 70k saving?