Mortgage
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I am in the midst of applying for my housing loan. Need some advise on the difference between MRTA and MLTA.

Dianelynn.86 small

Hi Magdelin,

One of it requires only a one time payment and is hence more affordable especially since it can be incorporated into your loan, while the other requires a yearly payment of what some consider to be quite a hefty sum. You can check out the advantages and disadvantages of both from the link below. :)

http://www.property.cc/khim-associates

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Hi, I was given some advice by someone who said that I could even link my current life insurance to the home loan, instead of buying the bank's MRTA or MLTA insurance. Does anyone know if this is true?

Wernloong small

Hi Nigel, if im not mistaken yes you can link your current life insurance to the home loan. Regarding about the procedures im not too sure.

Winproperty1488 small

You assign your life policy to the your borrower bank, if you pass away before settle the loan, insurance company will settle the loan for you, the remaining will give it to your next of keen. Unless bank force you to buy insurance from them before approve your loan, if not, just nominate your next of keen to settle the loan after receive insurance payout.

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Just go for MRTA. That's what's its needed for.

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@Nigel. Agree that if have existing life insurance policy. Can consider not to buy any MLTA or MRTA . It is an option, not a must . 

If plan to settle loan in a short few years . Better go for MLTA if want extra protection . 

My 2 cents worth opinion . Thanks . 

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Dominic, some banks make it compulsory which comes together with mortgage.

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@Veronica, can you please give us an actual case of banks who make it compulsory for MRTA/MLTA and their respective loan package?

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although it is compulsory, u may opt for lesser sum assured instead of full coverage. maybe 50% of loan amount.

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@Nic...yes agree with you. I have seen cases where the co-owners chose MLTA insurance coverage which only cover 50% loan because the property is jointly owned by 2 parties.

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@domng, UOB Bank. When I took up their home loan, it's compulsory to also take up their MRTA / MLTA. It's in the agreement. 

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however, it is still subject to underwriting requirement. High risk people even customers want to buy also cant :)

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High risk people who don't repay loan or High risk people who need to claim for MRTA and MLTA? LoL :^)