Dear Sáimer,

1. If you need to have a full description of your MLTA, i can provide you.

2. The difference would be as below, laymen terms:

Hi cybpsych,

Regards to your question, I've answered it earlier

MRTA
- one lump sum payment
- reducing coverage
- non transferable to other property, in other word burnt when you settle off the loan or refinance it
- no cash value
- no critical illness coverage

MLTA
- yearly premium thus cheaper than one lump sum
- increasing coverage
- transferable, thus you save cost
- cash value means you get cheaper ownership
- has critical illness coverage

Regards to your 2nd question
for MLTA, death/tpd benefit, how much do my spouse/nominee receives? if the prop is joint name (me+spouse), the spouse can get death/tpd benefit from MTLA?

Death & TPD Benefit will be paid out depending on whether you've bought the policy for the 1st or 2nd borrower.

E.g You took a loan for 300k under Borrower A & B, have 4 option
1. Get 300k MLTA for Borrower A
2. Get 300k MLTA for Borrower B
3. Get 300k MLTA for Borrower A & B
4. Get 150k MLTA for Borrower A & B

But I would always suggest to get MLTA for the main borrower (the one who forks out the installment)

However, if budget allows, you can always protect Borrower A & B for the full sum of 300k or 150k each.

for a 500k prop value, assuming MLTA 500k for Borrower A (main), what will happen if Borrower A tpd/deceased (per your suggestion to get MLTA for main borrower)?
For the loan taken 500k, the MLTA will fully pay off the 500k and the house you've purchased is debt free, meaning you don't have to serve the housing loan interest installment anymore

does Borrower B (spouse) get anything? Do Borrower A need to specifically nominate Borrower B?
premium wise, how much would that be for 500k MLTA?
Borrower B (Spouse) will get 500k if Borrower A nominates the MLTA to Borrower B instead of assigning it to the Bank's name so that the Borrower B can either decide to pay off the 500k entirely to the bank or continue to pay off the installment and use the money for something else.

The premium for MLTA is based on your age, gender, whether you're a smoker or not and your occupation. Feel free to provide me these info over here or via PM so I may quote it accordingly.

ASW2020/ASM I think you have to print with their online account. if not, have to request them to print for you. It will help as the dividend can be counted as income.

I also don't have such account leh ... maybe can try here ? http://www.asnb.com.my/v3_/asnbv2_6contact.php#pejabatasnb

Dear,

Yes, you will need to visit them to get the statement to show the dividend credited. Or if you have the book to show the dividend credited,  can prooced.

2. Well, dividend do help in boosting ur income. Best is if you get 2 years of dividend income shown. 2014 and 2015. Some bank takes 2 years some 1 year

Cheers

Dear tryifelsecatch,

1. You are right! MRTA able to be finance into the loan amount

For MLTA, yes, certain banks do allow you to finance into the loan amount. Certain Banks.

2. Nope!

Example: (Below figure illustration is fictional, for illustration purposes only! haha)

a. Normal
Rm500k loan/ 4.5%/ 35 years

Installment would be Rm2200

Total interest charge would be Rm410,000

b. Finance either mlta or mrta Rm10,000

Rm510k loan/4.5%/35 years

Installment would be Rm2250

Total interest charge would be RM450,000

- Interest would be higher if finance any extra amount into the loan!

Depends on what type of mlta it is. I got some that can get 100% by 10th year.

Dear,

that it simply this way, MRTA is for short term gain, MLTA is for long term gain. You need small capital for short term gain and more capital for long term gain.

It depends on your cash flow, if you have healthy cash flow, take MLTA

If you fancy a more comprehensive and thorough protection, take MLTA

If you prefer cheap and short term protection, take MRTA

It's best to maximise the tenure for mrta to 35 years or otherwise get mlta as mlta can last until you're 100 years old.

Mrta is on reducing term thus your coverage will fall faster than your loan installment due to the shorter tenure coverage. However like I said. If you're on a budget then go for mrta shorter tenure but it's going to hit you with reducing coverage. The depreciation will be very high on your sum assured.

Mlta if you can afford it will definitely cover you on level term and thus you don't have to worry down the road should anything happen to you.

It's always better to get a consultant to draw it out for you and explain throughly and then make your decision from there.

When if you do plan to dump in money as principle to reduce the interest then I guess 30 or 25 years tenure should not be a problem. You will need to calculate how much interest you have effectively reduce from there on and then match it with the tenure of the mrta

Dear,

1. That's the general mistake in this industry, banker never consult and asked client what's their need for MRTA and how long do they need to be insured. They never inform them anything and client knows nothing about it. After loan approval, they had already finance 10 years or 5 years or 20 years into the loan amount. When client asked for a change, they said it will be troublesome need to redo and soo...

Yes, installment will be the same throughout, as you know, you need to pay off the interest charges by the MRTA finance into the loan amount.

2. For Mrta MAX would be 35 years of the loan tenure. MLTA could just cover 35 years, however, it can be customized and cover more than 35 years. There's few type of MLTA.

3. well MRTA and MLTA both is mortgage protection purposes. MLTA usaully expensive because agent simply quote it and beat the purpose as to give high cash value.....

Well, there's no right or wrong for MRTA and MLTA, it really depends on your budget and your perspective. But bear in mind that MRTA isn't transferable when you refinance or sell off your property. You will need to repurchase the MRTA again.

Very very likely it will.

Lower.

It shall follow the same direction of OPR which in this case a decrease.

The last decrese caused the BR to increase so not sure about this recent decrease. Most probably wait and see.

Dear,

Well high possibility that the rate will slides according to OPR direction, however bank has their autonomy to stay firm with their current rate in accordance with their business strategy for mortgage portfolio. Hence observe and hope for the best 

Cheers

Bank using BR rate now, doesn't mean that OPR % decrease necessarily cause Bank to lower down their interest, they would like to earn a profit out of this, but if any other competition decides to be competitive then they might lower down the interest rate on special approval basis instead of mass market.