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Financial MRTA vs MLTA vs Term Plus..., whatever they call it
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davidlow7
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 Jun 1 2012, 04:43 PM
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Currently I am in dilemma as to purchase MRTA or MLTA.
I am a first time buyer and is still trying to understand both MRTA vs MLTA.
My purchased price is 370,800 so loan 90% is @ RM333,720.
As I need to take MRTA in order to get -2.4%, judging from the MRTA is going to cost me about RM12k for an aged 28 person.
I am considering to take 50% of the loan amount into MRTA for 10 years.
While perhaps 50-70% of the loan amount for 30 years.
What do you all think???
The reason I have this idea is:-
- I am not sure if I will sell this house in 5-10 years, although my current idea is to make it my home.
- MRTA finance into loan is really pain for interest while MLTA you are paying monthly as in taking another insurance for yourself. Judging by the extra in interest, perhaps an adjustment into taking a mixed of this may be a better choice?
- MLTA can help me to get some tax relief
- I am still young, at aged 28 and is my first house perhaps it is good to buy since it is transferable to my another property in future.
- MLTA covers 36 illnesses as well, another life insurance since I won't be ending with only 1 insurance policy with me anyway.
I am still waiting for my insurance agent to get back to me on the table/quotation to fully decide.
Perhaps any input from you guys will help.
This post has been edited by davidlow7: Jun 1 2012, 04:45 PM
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davidlow7
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Jun 9 2012, 02:05 PM
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QUOTE(jason_chee @ Jun 8 2012, 03:36 PM) do take note on MRTA. It's REDUCING BALANCE. meaning, 50% of loan amount = RM 166,860 for 10 years MRTA. Kindly refer to the "Sum Assured" of the proposal. The Sum Assured could be as below: Year 1 - RM 166,860 Year 2 - RM 135,000 Year 3 - RM 105,000 Year 4 - RM 75,000 Year 5 - RM 45,000 Year 6 - RM 25,000 Year 7 - RM 15,000 Year 8 - RM 10,000 Year 9 - RM 5,000 Year 10 - RM 2,000 just my illustration only. you still have to refer to Sum Assured in the proposal chart. if you are considering buying this scheme, i would suggest you to take MLTA without Rider Option (36 CI). cover the sum assured for 150K first. when your financial is getting better, increase the sum insured and eventually you have to pay more every month. now, you can also consider this as ur saving. imagine, after 25 years, you can cancel your MLTA and use the money to fully settle your loan. it could be 1 alternative as well.  The % is also important when they are drafting a proposal for your MRTA. Usually it should be in the range of 6-8% due to the non-guaranteed rate of floating BLR. Currently I am requesting for a 150k for 10 years which should be sufficient for me at the time being as I have company insurance and other benefit. My beneficiary gets 36 months pay if anything happens to me. (touch wood) plus an 150k sum assured (<RM15 per month)that I am planning to take with my company for long as I am still with the company until I have better budget for a better MLTA hopefully next year before my birthday month. |
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