Guys,I am totally new to the acquisition of new house...Recently my family planned to buy a new house,from the developer...we had paid a 3k deposit...The house price is Rm225k...my father planned to take only RM80k loan,so paying RM145k upfront....But today an Agent from a home loan consultancy company told me about a new plan....His advice to us is not to pay that much as upfront,due to this might cause in Taxation problem...secondly...the agent said they do have a package for the client to save interest rate....

The idea is roughly about borrow higher amount from bank...and don take any MLTA or MRTA,but use another type of insurance,which is called as MIA ( Mortgage Insurance Account)..the benefit of doing so is that the MIA mentioned is some kind of saving insurance,which at the end of the insured term,we can get back the money we invested in the mortgage account..So the agent told me not to pay the big upfront,but instead paying upfront amount,lets say 40k...so the remaining RM105k(RM145k-40k) can be use to pay the premium for MIA..then maybe after few years i can use the premium paid to pay off the remaining loan amount for my house...

Actually can anyone advice me for this? and my situation is,we planned to take as least loan amount as possible(to save interest)..then after maybe 5 years ,we planned to settle all the remaining loan amount.....

Ps : there is no consultancy fees or any charges for using the homeloan consultancy firm....and from wat the agent told me,i could save some legal fees by appointing them,as compare to the normal way,which mean we get our own lawyer and settle everything..the agent said they will help us to settle everything from the beginning till the end...

Thanks in advance....

the problem is...the bank manager told me that it is compulsory to buy MRTA....probably due to the age of my father(54)...and im not working..but as i know ,bank Negara had make it optional to buy MRTA? thats y i am considering the MIA i mentioned previously...which had cash value at the end of loan term,and the premium paid is recoverable.....instead of choosing MRTA,of which the premium paid is not recoverable at the end of loan term....any idea?

PS : the MIA is from AIA...anyone heard of it?

This post has been edited by kent1988: Jul 16 2009, 12:26 PM

actually the 5 years plan to settle the entire home loan is just an example...but for sure my family will not wan to wait until the whole tenure term to end,so we probably will settle it in between the tenure period...the problem im facing now is...i do not know whether i should trust this agent,about this MIA....thats why im trying to check the existence of this product (MIA)..i tried to call AIA just now...but no one pick up my phone...anyone here working for AIA ? or did heard bout this product?

from wat the agent told me....after a particular years,we can take out 70% of the accumulated premium we paid,to pay off partially or the whole loan amount....if we did not do so,at the end of the tenure term,we are still able to recover the full premium we paid ,plus an interest earned from the mortgage account.....so from what MIA offering and its benefits,it sounds very good ...but i am just afraid this could be a cheating product,which mean AIA did not offer this kind of mortgage product?

This post has been edited by kent1988: Jul 16 2009, 02:29 PM

Today i just signed the S&P agreement..and i agreed to take the loan from Alliance Bank..BLR - 2.1% (is it good this rate?)......plus a loan,thats not MRTA....is called MIA (I mentioned previously)...actually this MIA uses the concept of Universal Life Insurance from AIA......it generates minimum guaranteed 2% interest from the savings in MIA account....

Can anyone tell me is this Universal Life Insurance good? from what i know is the premium paid is recoverable,unlike MRTA....but the premium for Universal Life Insurance is higher than MRTA...