Mrta vs mlta
Jonathan de ho half body small

MRTA, MLTA... Which is your preference? 

Mortgage insurance also come in different types. At present, there are two: the Mortgage Reducing Term Assurance (MRTA) and the other one is the Mortgage Level Term Assurance (MLTA).


To start you off; here's the differences between the two insurance types. 

MRTAMLTAPurposeProtectionProtection, Savings and/or cash valueCoverageCovers the outstanding housing loan on a decreasing sum assured basis
Covers the outstanding housing loan on a fixed level sum assured basisPaymentLump sum payment by cash or financed into housing loanPaid periodically on a monthly, quarterly, semi-annually or annual basisTotal PremiumLowerHigherNominationBank is the beneficiaryAnyone can be the beneficiaryTransferabilityNoYesSuitable for*Where buyer aims to own the house in a longer termWhere buyer is expected to sell the house in short-term

*The line on suitability is just a suggestion. As always, you’re welcome to choose whichever makes you comfortable. After all, insurance is supposed to make you feel comfortable in the event of a calamity.


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I prefer META - mortgage exempted term assurance

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If you already got sufficient Life Coverage, then just get MRTA/T to cover the loan that will be good enough. 

Jonathan de ho half body small

What is that, PNK?  Mind to share more about it? Thanks

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i think he means "mortgage loan without term assurance" :)

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@nicsonic, you mean if one has enough life insurance coverage, MRTA should be sufficient?

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Me myself prefer MLTA as its transferable and doesn't depreciates like MRTA

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@Zara_Yeow MRTA/MRTT will be sufficient to cover your loan outstanding amount based on yr current loan interest rate and tenure, if there is not interest rate hike up in future. 

I assume "enough life insurance coverage" you mentioned is: life insurance coverage = 10 times of your annual salary or 10 times of your annual expenses for yourself and family. 

Hope it helps :)

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No point going for MRTA is you plan to flip the property very soon let's say in 3 years. Nowadays banks don't even require you to purchase any MRTA/MLTA for them to approve your loan.

I would personally purchase term insurance with zero guaranteed returns... as we are purchasing property as investment. Why need MLTA as another investment link insurance, aka MLTA to insure against a property investment?

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I would prefer go for MLTA due MRTA is for only 1 property and MLTA can be more than 1 property. Also for MLTA, you don't needed to pay so much in 1 shot.

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if totally no opt for MLTA and MRTA... purely use existing life insurance policy to cover. Anyone recommend this?

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MLTA or MRTA is mortgage term insurance, not investment link insurance. 

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I believe there is no MLTA which does not tie to investment linked policy. Else how insurance company able to provide such high value protection for a lower premium?

However, some owners still prefer it but need to hold on to the MLTA for 10 to 20 years to at least break even and get money back . 

I personally would strongly discourage MRTA . In fact banks does not require it anymore for their bank loan 

My 2 cents. Correct me if I am mistaken . Thanks . 

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To take MRTA or MLTA, which one to choose, depends on individual needs and what is the insurance coverage at this moments. 

Term insurance is cheaper because it provides only basic coverage (Death & TPD), and based on the term (year) of coverage. Unless you add other riders such as Critical Illness, then you need to pay more. 

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@jdh thanks for sharing