I was recommended to buy shorter mrta (than loan tenure) due to age and if intend to settle loan early. I don't know if it's because the banker didn't have much idea about mlta or because it's more expensive.

Do people usually buy houseowner/householder insurance together with mrta/mlta from the day they sign LO?

Dear,

NO problem

1. It is optional for you to chose and buy MRTA add on to your housing loan package. You can chose either 5 years, 10 years or any tenure of years to protect your housing loan. You can cover to your max loan tenure too.

If you settle your loan earlier, your MRTA even if you buy 35 years, and settle in 10 years housing loan, your MRTA will be cancel and not transferable.

So there's pro and con for MRTA, MLTA will be another option for you to choose



2. If you purchase MRTA or MLTA with the bank, the moment you sign the letter offer, it will take into effect.

3. If fire happen, fire insurance will cover the housing loan, as fire insurance has already been bought by you automatically by the bank.

It is prerequisite.

B. Name will be transfer when you sign Sales and purchase agreement via lawyer. However, to get the grant, transfer of title, it will take some time. The whole process for it is

freehold or lease hold with title will be around 3-5months, it also depends on the lawyer efficiency.

4. Usually if you deal with direct banker, they will usually push MRTA product first, because it benefits the bank. When anything happen to you, MRTA will pay off th ehousing loan first before giving your family the outstanding balance, if you purchase MLTA independently, anything happen to you via DEATH TPD OR critical illness, the disbursement will paid to your family first then your family can choose whether to pay for the housign loan first or for own usage.

MRTA short term offered to you has nothing wrong. YOu see, if you are a investor, who flips property in short term, MRTA serves you well, because of low budget cost and in short period of time, you will flip the property and in between your property has the protection in needed.

5. Yes, they do. It depends on whether they need the protection or not. Certain people who has enough protection sum assured, wouldn't burden themselves with more insurance debt.

It depends on the mentality of that person and whether there's enough coverage for your debts in total.

So it is subjective questions

Best, is to purchase insurance for property protection when you see the need of it.

Cheers

No .. .that's a wrong advise for mrta

If you intend to settle earlier. Mrta got unused premium that will be refunded if you settle earlier. It will be refunded to you once the loan is fully paid off or refinance.

Not really when I advise you then you'll know more about mrta and mlta

Normally bank will buy for you fire insurance as the bank is the owner of the property if you fail to pay the loan. If the property caught fire and you didn't get fire insurance then they'll be at the losing end as you will have no money to rebuild the same property.

Yes normally sign together on LO for mrta / mlta.

Let me know how I can assist you further

This post has been edited by lifebalance: Jul 19 2016, 10:00 PM

The property is to live in long term and not for short term investment and even though loan tenure requested is maximum years, i intend to settle before retirement age. So the banker recommended shorter mrta that doesn't cover the full loan tenure. Looking at your advices, in short the mrta is beneficial to the bank. If i choose mlta, do i have to buy it independently or can i go through the bank?

If i don't want the trouble and stick to the shorter mrta, will there be any disadvantages down the years?

Yeah normally mlta can be bought through insurance company like myself.

Bank don't sell mlta.

Even if you choose to settle the loan earlier. Your mlta can be brought forward to the next property purchase whereby you don't have to buy another mlta at later age where you're older thus mlta price would increase. So locking in the mlta at younger age will benefit you.

If you decide to stick with shorter mrta means if say
Your loan is 500k for 35 year
Your mrta if 500k for 17 years

Meaning by 17th year of the loan your loan maybe paid 250k but your mrta gone edi

Or if you choose 5 years coverage but loan 35 years meaning by 5th year your loan outstanding maybe around 400k but your 500k mrta is reduce to 0. Also say the same case but on the 3rd year. Your loan still owing 480k but mrta coverage reduce to 200k only instead of the 500k cover

Mrta is cheap but it's not a long lasting coverage.

Whereas mlta coverage will be 500k all the way until you choose to sell the mlta policy and cash out to pay to your loan.

=)

Dear

Bank itself sales MLTA, please don't mislead people in order to sell your own service.. Seriously... Smh.

Cheers

Dear,

1. Based on your criteria, MLTA will be suitable to your cause.

Because

MLTA
a. will give protection to you even after your have refinance or sell of the property, the protection follows you and can transfer to another new property or old property
b. The protection coverage is level term, means if you purchase protection of RM500,000 after 35 years time, the protection will still be the same amount
c. Purchasing MLTA through outside bank offer, your family will receive the cash when anything happen to you (Death, TPD and Critical illness), they can chose to settle the property loan or for their own use
d. Protection can be more than the loan tenure of your property, meaning to say >35 years

However, it's pricier than MRTA

MLTA through bank

a. Anything happen to you, bank will use the sum assured to settle the housing loan first before disburse the money to you
b. the protection are limited to your housing loan loan tenure, means it is not unlimited and it is not transferable
c. customization space are limited for mlta through bank


2. However, MRTA shouldn't be removed from the picture

a. It's cheaper compare to MLTA, thereby it comes with the shortllife features that doesn't benefit you in long term
b. buying 35 years cost isn't too high, whereby if you wish to budget your cash flow, hence MRTA will be a good option

However, the shortfall is
a. can't transfer to another property (indirectly saying)
b. will settle the housing loan first before disbursing the cash to y our family
c. the protection is reduced through yearss and yearss.
d. the protection wouldn't be able to cover the outstanding loan balance if ever the interest rate rises too high 8-10%!
e. Anything happen to you after that, the ownership transfer will be quite troublesome, it will take maybe years. Because the process of transfer of ownership after your death will thorugh amanah rakyat and high court, it will take a long time.

Well, you can see there's pros and cons for both product, do study wisely and chose the right product for your objectives.

3. MLTA can be purchase independently through Mortgage consultant




Cheers

Hi, im a first time home buyer and understand that i have 50% discount for spa. Can i know how much I have to pay for all the fees for a 350k property?90% loan 315k

Hi

S&P
Stamp Duty 6400 * 50% = 3200
Legal Fee = 3040
Disbursement Fee = 2000

Loan Agreement
Stamp duty 1850 * 50% = 925
Legal Fee 3040
Disbursement Fee = 2000

Total RM14,205

This is applicable to subsales, otherwise, you won't have to pay for MOT so fast.

Let me know if you need a good lawyer to handle ur case, it's important so that ur transaction can complete within 3 + 1 period.

Thanks for the reply. Im buying a sub sale property, however, from calculation above meaning we need to pay twice the legal fees?

1 for snp
1 for loan agreement

Dear,

Purchasing subsales property 90% margin of finance,Freehold with title! cost break down:

Initial cost

1. Downpayment 10% RM35, 000
2. VALUATION FEES: RM800-RM1000
3. LEGAL Loan : RM7011.2 (Highest calculation)
4. LEGAL SPA: RM 10708.3 (Highest calculation)

Total: RM53K ++
---------------------------------------------------------------------------------------------------------------------------------
Cost after ownership

1. Maintenance fees
2. Cukai pintu
3. sinking fund..

Do take note of all this cost, as you must be clear about what you are about to pay now and in the future!


LEGAL COST



SPA COST

Question.

Why i always have fire insurance manually to the bank on yearly basis? My fire insurance is not included in my housing loan?

Dear,

1. Is your property under landed property?

2. Which bank?

3. Usually fire insurance if you purchase from bank itself, it will be paid automatically to the bank for landed property property annually.

Cheers

This post has been edited by Madgeniusfigo: Jul 20 2016, 09:01 AM

For strata title properties, one doesn't need to buy fire insurance with the banks.

Your strata title property JMB/MC is the one responsible to buy insurance on behalf on all proprietors, and JMB/MC will collect/charge the premium on property owner.

You just need to present the fire insurance policy to the bank who giving out the loan.

Hi sifus,

If let say my
gross salary - 2800
Allowance - 400
Cc- 800 (pay on time no outstanding)
Car loan - no
Current property 350k - (monthly 1577) rented out
Side income - 4000 ( never deduct epf )

What are the eligible amount of property i can loan?

Tq

Normally if your property is landed. You have to buy your fire insurance with the bank as they will auto buy for you.

If your property is high rise building like apartment or condo then you'll have to produce a master copy of the fire policy with the condo management office then bank will not auto buy for you.

Once bank auto buy for you they will charge to your loan account

What's your rental income for this 1577 property.

How long is ur side income business edi ? Working as ?

What's ur nett income from ur real job

For your rental. Do you have the latest tenancy agreement and at least 3 months bank statement to show its bank to u.

If collect by cash then not considered

This post has been edited by lifebalance: Jul 20 2016, 09:13 AM

Dear,

Thanks for the correction!

Yup correct, all under master insurance, just pay to JMB!

Cheers

Dear,

1. CC 800 is monthly payment or credit limit?

2. Rented out, do you have tenancy agreement? to show proof of your tenant income

3. RM4000, what kind of income is this?

Do you atleast bank into your bank account or receive voucher receipt?

Cheers

This post has been edited by Madgeniusfigo: Jul 20 2016, 09:05 AM

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