kelviny118
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WHAT IS MRTA / MLTA ?
Basically, both Mortgage Reducing Term Assurance (MRTA) and Mortgage Level Term Assurance (MLTA) are functioning as a Protection for borrower by helping them to settle their outstanding mortgage loan in the event of something bad happens. In other words, it is mortgage insurance.
Here are some explanations of MRTA and MLTA :
MRTA (Mortgage Reducing Term Assurance)
MLTA (Mortgage Level Term Assurance)
More information from media :
Even if it is your 2nd house or 3rd house ?
HOW TO DETERMINE BUYING MRTA OR MLTA IS THE BEST?
Step 1: Identify the purpose of buying the property, whether it’s for self-occupying or investment because that will determine how long you are going to hold the property.
Step 2: Analyse the best protection coverage needed, which is sufficient to ensure your spouse will not get into financial trouble for the monthly mortgage installment. In order to minimize the costs, it might not be necessary to have full coverage (same as total housing loan amount) as you might have other backups (eg. savings, cash, other insurances, shares etc).
Step 3: Do some calculation and comparison to have clearer picture on the costs involved and affordability on the premium, respectively.
EXAMPLE 1: BUYING MRTA
Total Loan Amount = RM 106,155
Loan Tenure = 30 years
Age = 25 years old
Coverage Ratio (%) = 100%
Coverage Amount = RM 106,155
MRTA Premium = RM 2,371.50
Payment Option 1: One Lump Sum Payment Upfront
Since it is one lump sum payment upfront, hence, no interest is charged
Payment Option 2: Financed into Housing Loan
Assume BLR – 1.8% = 4.25%
Assume Loan Tenure = 30 years
Monthly Installment = RM 11.66
Total Interests Paid = RM 1,824.84
Total Payment = RM 4,196.34
EXAMPLE 2: BUYING MLTA
Total Loan Amount = RM 106,155
Loan Tenure = 30 years
Age = 25 years old
Coverage Ratio (%) = 100%
Coverage Amount = RM 106,155
MLTA Premium = RM 74.30/month = RM 891.60/year
3 years x RM 891.60/year = RM 2,674.80
6 years x RM 891.60/year = RM 5,349.60
9 years x RM 891.60/year = RM 8,024.40
12 years x RM 891.60/year = RM 10,699.20
Free Consultation Services !
Just contact me on 010 - 289 9902 (CALVIN YONG) for further information regarding MLTA Plans.
Basically, both Mortgage Reducing Term Assurance (MRTA) and Mortgage Level Term Assurance (MLTA) are functioning as a Protection for borrower by helping them to settle their outstanding mortgage loan in the event of something bad happens. In other words, it is mortgage insurance.
Here are some explanations of MRTA and MLTA :
MRTA (Mortgage Reducing Term Assurance)
MLTA (Mortgage Level Term Assurance)
More information from media :
Even if it is your 2nd house or 3rd house ?
HOW TO DETERMINE BUYING MRTA OR MLTA IS THE BEST?
Step 1: Identify the purpose of buying the property, whether it’s for self-occupying or investment because that will determine how long you are going to hold the property.
Step 2: Analyse the best protection coverage needed, which is sufficient to ensure your spouse will not get into financial trouble for the monthly mortgage installment. In order to minimize the costs, it might not be necessary to have full coverage (same as total housing loan amount) as you might have other backups (eg. savings, cash, other insurances, shares etc).
Step 3: Do some calculation and comparison to have clearer picture on the costs involved and affordability on the premium, respectively.
EXAMPLE 1: BUYING MRTA
Total Loan Amount = RM 106,155
Loan Tenure = 30 years
Age = 25 years old
Coverage Ratio (%) = 100%
Coverage Amount = RM 106,155
MRTA Premium = RM 2,371.50
Payment Option 1: One Lump Sum Payment Upfront
Since it is one lump sum payment upfront, hence, no interest is charged
Payment Option 2: Financed into Housing Loan
Assume BLR – 1.8% = 4.25%
Assume Loan Tenure = 30 years
Monthly Installment = RM 11.66
Total Interests Paid = RM 1,824.84
Total Payment = RM 4,196.34
EXAMPLE 2: BUYING MLTA
Total Loan Amount = RM 106,155
Loan Tenure = 30 years
Age = 25 years old
Coverage Ratio (%) = 100%
Coverage Amount = RM 106,155
MLTA Premium = RM 74.30/month = RM 891.60/year
3 years x RM 891.60/year = RM 2,674.80
6 years x RM 891.60/year = RM 5,349.60
9 years x RM 891.60/year = RM 8,024.40
12 years x RM 891.60/year = RM 10,699.20
Free Consultation Services !
Just contact me on 010 - 289 9902 (CALVIN YONG) for further information regarding MLTA Plans.
