Hi guys, i am looking for advice whether to buy MLTA or MRTA.

If buy MRTA, the loan interest rate will be lower.

What you guys would choose?

MLTA, no need investment element

Both also got pros n cons.

U Joint loan and joint owner or how 1st?

I am individual buyer. Not joint.

Negotiate the requirement away and plan under your own term insurance. Going through a 3rd party, means another layer of fee.

As long interest is low, premium is affordable and is able to cover the loan, is good enough .... that is the purpose of buying the property.

Dont try to link other things into the purchase as it is not relevant.

This post has been edited by mini orchard: Jan 28 2022, 05:18 PM

Just get MRTA, you are insuring the value of your property, not yourself. MLTA you can buy anytime.

ask them if you can separately purchase a standalone life insurance and charge it to the bank for the tenure of the loan. although the chances are very slim, bank wants to make money as much as possible.

you might be able to get the requirement for insurance waived if another bank offers. banks will match each others offers. that's what I did.

If you want MLTA, try to nego with bank to take minimum MRTA/MLTA so that the interest is on the lower side. Then buy MLTA from outside.

If you take MRTA/MLTA from bank, the premium will be added on top of the loan and will be charged with interest unless you plan to pay the lumpsum amount.

Just my 2 cents.

MRTA is to insured the borrower against any eventuality of a happening and he cant cont to pay the instalment.

Some banks give options to borrower whether to purchase or otherwise as if anything happen and the borrower cannot pay, they will proceed to auction the property....just more procedure to recover the loan.

I went for MLTA. Just needed to top up about RM360 on top of my installment per month for 500k coverage, payment for 20 years, coverage for 40 years. At the end of the maturity, can withdraw out the cash amount. Also, can be considered as Life insurance for income tax deduction purpose.
For MRTA, I needed to top up RM70+ on top of my installment, if factor in the interest charged on top of the MRTA premium. But it's reducing coverage.
RM360 - RM70 = RM290 top up.
MLTA is transferrable, not attached to a specific property. If I sell a property, and buy another one, I don't need to get a new policy.
Either MRTA and MLTA also my banker offered me lowest interest rate.

This post has been edited by Michaelbyz23: Jan 28 2022, 09:25 PM

Hi all,
Wonder why do we consider MLTA when we can buy LIFE INSURANCE? Isnt the latter better than MLTA? Premium for latter also lesser.

Go for mlta, i regret taking mrta because cannot transfer when selling the unit.

Cross sell for the bank. Fee income. Hence, try to negotiate away. If can’t? Try to negotiate for the min requirement to get the best rate.

aiya want save money . follow me.. buy mrta cash upfront kaodim. save more than 70%. I did that. So ez.

But truth though. If you park it in your loan . you pay very expensive.

My loan is around 680k and i pay RM11k for my MRTA for 35 years. if include in loan almost 30-35k

By the same reason, you should buy the house using cash, because the interest rate is the same for your outstanding loan and the Mrta parked into the loan

Yeah true also. But now cost of debt is cheap. That why sometimes why not pay cheaper debt. If your investment have return more than your loan interest rate. Invest in it.

You can surrender the mrta to the provider and get whatever residue cash value left. It’s not zero.

Is only good 'value' if the next property loan is lower, otherwise need to top up premium also to cover the additional risk. It wont be cheap because of age factor.

This post has been edited by mini orchard: Jan 30 2022, 05:59 AM

11k for 680k property over 35 years? That's very cheap.
My previous MRTA cost me 17k for 480k, 35 years