Will pm you the quotation shortly.

Hi there, i singed up MLTA for 15 years with a bank together with my loan. The single premium stated is 11.5 K. Do i need to pay that amount annually? or it is taken care by the bank and is being charged to my monthly loan repayment?

This post has been edited by justine4002: Sep 29 2014, 11:53 PM

Hi, if single premium and it's already finance into your loan, you do not have to pay anymore. Just pay your bank instalment will do.

Thank you

If I were to buy a property for investment purposes, means its going to be rent out 2 to 3 years after completion, then sell it. Should I obtain MRTA or MLTA?

Honestly if its for Investment, you DO NOT need MRTA or MLTA cos if anything happens to you, your family will not be homeless and can choose to sell of this Unit

Hello,

In the process of buying new house. Can I get a quotation for MRTA or MLTA.

The house price is RM473100 with 90% loan. Loan tenure is 35 years. I'm 28 years old.

Thank you in advance.

Do you plan to buy future properties after selling this one ?

If yes, then it's more worth to buy MLTA because it's under your name instead of the said-property.

MRTA is attached to the bank per property meaning if the loan is fully paid, the MRTA is burned and you must re-buy another MRTA for the new property.

If you need advise can always msg or call me @ 016 332 3290 Keith

If you choose to financed it with your monthly loan for your MLTA, you've just doubled or tripled your cost because financing it under the loan will increase with the compounding loan interest which is not good for you because it will incur more cost.

Hi, I'm Onn from Hong Leong Financial Group.


Below is some detail about pros and cons for both MRTA and MLTA for you to have better understanding for the product.


MRTA is stand for Mortgage Reducing Term Assurance.
Some bank is compulsory borrower to take this insurance when applying loan. The main purpose to get MRTA is to cover the loan amount when the borrower passed away. That's why MRTA is only cover for death and TPD (total permanent disability)

Pros of MRTA
- one time payment only
- premium can be finance into the loan (but interest count in)

Cons of MRTA
- no cash value at the end of policy
- not transferable (you need to buy again when you refinance in future, and premium will higher when your age higher)
- coverage is reducing year by year until the end (just match the loan balance)


MLTA is stand for Mortgage Level Term Assurance.

Pros of MLTA
- monthly payment
- constant premium whole tenure, if RM150/mth, 30yrs also RM150/mth
- Level coverage, meaning if you cover for RM200k, whole tenure also cover RM200k.
- Fully transferable, you may refinance or change property as much you like
- with cash value (p/s : there are few type of MLTA available that is without cash value, with guaranteed cash value and with non guarantee cash value)
- can shorten your loan tenure using the cash value you have in MLTA
- optional to add critical illness rider, personal accident rider and etc
- premium can be use for tax relief (Max RM6000 per year)

Cons of MLTA
- you have to keep paying to remain covered
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Quotation for MRTA

Age: 28 (1986)
Male / Non-smoker
MRTA cover for Death & TPD (Total Permanent Disability)
Loan Amount : Rm473100 x 90% = Rm425,790.00


MRTA coverage of Rm426k for 35 years, premium will be
Rm18,194.46 for non-financed (Mean you pay MRTA by cash)
or
Rm19,006.00 for Financed (Mean you finance the MRTA premium into your loan)

If you finance the MRTA premium of Rm19,006.00 @ BLR-2.4% (effective 4.45%) into the loan, the monthly payment (MRTA only) will be Rm89.36 per month. Total cost over 35 years will be Rm37,531.02

Do note that if the BLR increase in future, the installment and total cost will increase too.

Detail of the MRTA
[attachmentid=4221128]

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Quotation for MLTA

For MLTA type 1 with NO Surrender Value (but will have some value only if you surrender this policy earlier)

Age: 3528 (1986)
Male / Non-smoker
MLTA type 1 , Cover Death & TPD (Total Permanent Disability)
Loan Amount : Rm473100 x 90% = Rm425,790.00


MLTA type 1 coverage of Rm426k for 35 years fixed,
Monthly premium = RM171.47
Yearly premium = RM1959.60

Detail of the MLTA type 1.
[attachmentid=4221129]

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For MLTA type 2 with Guaranteed Surrender Value
Age: 28 (1986)
Male / Non-smoke
Loan Amount : Rm473100 x 90% = Rm425,790.00
MLTA Tenure: There is NO term for this MLTA type 2 so it can be use up to age 100, just surrender this policy at any year you want to terminate or when the loan fully paid.
MLTA coverage type 2 coverage of RM426k, Cover Death & TPD only

Monthly premium = RM378.34
Yearly premium = RM4323.90

GUARANTEED
Surrender value at 40years = RM253,755.00 (total paid only RM172,956.00)
Surrender value at 35years = RM214,930.00 (total paid only RM151,336.50)
Surrender value at 30years = RM174,549.00 (total paid only RM129,717.00)
Surrender value at 25years = RM136,439.00 (total paid only RM108,097.50)
Surrender value at 20years = RM101,392.00 (total paid only RM86,478.00)
Surrender value at 15years = RM68,573.00 (total paid only RM64,858.50)
Surrender value at 14years = RM61,851.00 (total paid only RM60,534.60) <----- RM4323.90 x 14years = RM60,534.60

Detail of the MLTA type 2.
[attachmentid=4221130]


This MLTA type 2 surrender value will let you break even at 14 years guaranteed. Meaning you will get back what you've paid at 14 years guaranteed. Let's say if you settle the loan earlier at 11, 25, or at 35 years, you already get back more then you paid for this MLTA thus you can say you are getting FREE MLTA coverage of Rm426k and earning some extra too. And in the middle, you may refinance or change/upgrade to bigger property as you wish without burn the MLTA.

Beside you have the option to continue this MLTA until age 100 and treat this as your saving account with guaranteed return or even a extra life insurance after the loan settle.

Note: The surrender value can be withdraw anytime and the coverage will be remain at Rm426k as long the value remain at min Rm3k.



--------------------------------------------------------------------------------------------------------------------------



For MLTA type 3 with non guaranteed surrender value
(This is an investment link plan which the surrender value will base on investment fund performance thus the surrender value is not guaranteed)

Age: 28 (1986)
Male / Non-smoker
Loan Amount : Rm473100 x 90% = Rm425,790.00
MLTA Tenure: There is NO term for this MLTA type 3 also, so it can be use up to age 100 (as long as there is sufficient fund,min 40 years in your case.), just surrender this policy at any year you want to terminate or when the loan fully paid.


MLTA coverage type 3 coverage of RM426k, Cover Death & TPD and OAD (old age disability)
Monthly premium = RM150.00
Yearly premium = RM1800.00

Projected Surrender value
At 11 years, High = Rm15,996.00, Low = Rm12,813.00
At 15 years, High = Rm25,905.00, Low = Rm18,659.00
At 20 years, High = Rm40,308.00, Low = Rm24,731.00
At 25 years, High = Rm50,729.00, Low = Rm28,181.00
At 30 years, High = Rm58,789.00, Low = Rm27,120.00
At 35 years, High = Rm62,995.00, Low = Rm19,835.00
At 40 years, High = Rm57,622.00, Low = Rm28.00

Detail of MLTA type 3.
[attachmentid=4221148]

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My Suggestion:


1) If you looking for cheapest alternative for MRTA, then the MLTA type 3 with only Rm150.00 per month or Rm1800 per year will be the best and value for money.

Compare with Rm150 per month for MLTA type 3, with Rm89.36 per month for MRTA, you only pay extra Rm150 - Rm89.36 = Rm60.64 per month. And you can get extra benefit as below :-

- Level coverage of Rm426k throughout the whole coverage tenure instead of MRTA that have reducing coverage.
- Option to continue the this MLTA for refinance, upgrade bigger house or extra life coverage.
- Bonus with non guaranteed surrender value, although it's non guaranteed, it's still better then MRTA or MLTA type 1 that's guaranteed ZERO surrender value at the end of 35 years.
- Premium does not tide up with BLR so worry free for BLR rise.
- Free up your commitment as finance the MRTA premium into the loan, you are lower down your borrowing quota for future investment.
-Surrender value can be use to shorten up the loan.
-Surrender can be use as emergency fund. You may withdraw out and just need to keep a minimum of Rm3000 and the Rm426k coverage will still in force.


3) If the commitment is ok for you, then MLTA type 2 will be a good choice too, as you guaranteed can get back all your premium paid as early at 14 years. So you will not lose your money to get the protection of Rm426k right after 14 years. After 14 year, the longer you continue this MLTA type 2, more extra surrender value (beside your total paid) you will get back and it's black and white guaranteed regardless of company or fund performance.



Do let me know if you have any question regarding the quotation and suggestion. Will try my best to get the best coverage plan for you.


Regards,
Onn
017-6100337

Guys , i would like to advise those looking for loans. Past few months i have submitted documents to few banks and had few experiences through out all this loan process and procedures. Almost 4 banks loan has been approved but i have rejected since their package not worth.

I were fully interested on FULL FLEXI before this, since i had intention to park money at current account to save loan interest. So each bank i have tried i was looking for FULL FLEXI and below was my feedback.

AMBANK - Beginning stage agreed for 80% and BLR-2.2, where BLR was 6.6. Then 1st reply said only can offer 70% with blr-2.1. Requested to push for blr-2.2. Next feedback was only 65% and blr-2.15 . So what i noticed here each time i ask to give better rate bank tried to reduce MARGIN OF FINANCE and made me to increase property value higher. So i have rejected.

MAYBANK - NO full flexi for business premise. Bank offered standard traditional loan, said can push for blr-2.2, subject to HQ approval. And if iM willing to park any cash in FD that would be easier for them to push. So i dropped.

CITIBANK - Full Flexi can push for blr-2.0 but loan tenure is just 20 years where monthly installment getting higher for loan amount. Not afford to pay, dropped.

ALLIANCE BANK - Fullflexi blr-2.0 can push more, only can offer 70% loan. In order to get better rate i must park about 50 or 60k in current account for 6 months. Later can take out money it seems. What i don't understand is, even without knowing whether loan success or not we have to park money in current account. If fail, still our money stuck in CA. So dropped.

HONGLEONG - Do have fullflexi link to current account. Blr-2.1 subject to approval. Loan approved but i reject since only can offer up to 20 years with lower amount of loan since their risk calculation on me is high. So dropped

PUBLIC BANK - Before try above banks, had tried PUBLICBANK once and they informed FULLFLEXI package has been closed. Then recently tried again and found out they offering FULLFLEXI if loan amount is above 500k with BLR-2.2. Seems good offer and applied then later on found out how their FULL FLEXI really works, where previous i had understanding of what ever cash you park in current account will be used to offset the principal loan amount and balance will be calculated for payment. BUT ACTUALLY NOT. I have attached below snapshot of clause.

To explain you short, PUBLIC BANK CURRENT ACCOUNT should have minimal amount which is 30k. That 30k will be excluded from computation. And only 50% of balance money in CURRENT ACC (after minus minimal amount 30k) will be used to offset loan principal amount.

Example, you have 100k parked in CA. Minus 30k of minimal amount, balance 70k. So only 50% of 70k means just 35k will be used to offset outstanding loan principal amount. So the rest of 65k in CA doing nothing....


LOOK AT 5.1 , 5.2, 5.3



NOW I already have doubt about FULL FLEXI at other bank, might be works in same way.
So i advise please check the clause or term how their FULL FLEXI works.




==============
HI Guys,

Here is TERMS & CONDITION ftrom ALLIANCE BANK for fullflexi account. They call it SAVELINK TERM LOAN ACCOUNT linked to SAVELINK CURRENT ACCOUNT

however when i checked at their online website for the package it says TERM LOAN + OVERDRAFT... does it serves same purpose like fullflexi ?

According to snapshot sent by mortage officer looks like no hidden charge, capping or minimal balance. But i still do not understand why that person never take snapshot of single photo from clause 4 to 5, instead of sending part by part. Something smell fishy...

Do you guys understand what that terms talking about, do you feel the same way i felt ?




This post has been edited by GHOSTVIC: Nov 25 2014, 07:26 PM

Hi all, if I buy a MLTA, the beneficiary will "automatically" set to my family or the banker can change it to the bank?
I'm looking at the sales illustration and I can't find the beneficiary.

Simple Answer is who is paying the premiums.

You directly or Financed by the Bank

If Financed by Bank - Beneficiary is always the Bank

Ask your Agent

It's depend how you buy the MLTA, if you get it by finance in the loan. Then the bank will need you to do absolute assignment to the bank and the beneficial will be the bank too. This is to prevent people missuse the credit facility by surrender the policy and get the money out.

But if you are getting the MLTA/MRTA by paying by yourself, then you are are free to assign the nominee or beneficial to any one you wish.

In the sales illustration it was mentioned:
Financier : CIMB

But the premium is financed into my loan >> Means I'm the one paying? Correct me if I'm wrong

I've asked the banker about this and he said "Beneficiary is next of keen, can't appoint who is the beneficiary".

I know it sounds weird but I don't really trust this banker because he always do things like exclude some pages in the document etc. etc.

Reason I plan to take this loan is because it's the best among the offers I got... haizzz

Okay... I see. Means the beneficiary is bank for my case then... Because the MLTA is financed into the loan

Just now the banker told me I can only appoint the beneficiary once the loan is settled (early settlement).

This post has been edited by SmokerBamboo: Jan 9 2015, 10:50 AM

If the MLTA its Financed by the Bank - then the Bank is paying and not you

You are merely repaying the Loan, so there is a difference

Refer Onnying88 comment above.

2-Questions,

1) Mind sharing your rate since its now BR + xx% and what is your Loan Amount

2) Excluding some pages from documentation is a serious breach of Banking Guideline and can constitute misspelling or fraud. Are you sure you wanna continue with this person. Ask him to provide all pages to prevent further misunderstanding.

Hi thanks to your reply

1. I'm still using BLR because I got the loan last year. It got delayed till now because I am currently oversea assignment. Gonna sign the loan agreement soon after I'm back.

2. Yes, I've asked him to give me the missing page. It's not missing page in the Letter of Offer, it's missing page from sales illustration, so it's still OK for me. Anyway, still waiting for his reply for the 3rd page. If he continues like this, I seriously wanna report this guy already.

Bro, Have u signed the Offer Letter already? If not here is a suggestion, apply form other Banks to see if Base Rate offers you better

Heard Maybank and Public Bank are amongst the lowest

Yes, you may only assign beneficiary/nominee after the loan settle as the bank will only release/assign back the MLTA policy back to you after the loan settle.

What's is the rate before and after add in the MLTA? Mind to share?

You might also need to compare the MLTA quotation as sometimes the MLTA quoted may be more expensive then what you may get by yourself.

For example the better rate after finance in the loan let you save extra rm50 per month but the MLTA premium might be extra rm60 per month or maybe you may get better coverage with the same amount of MLTA premium too.