Finally, i terminate the MLTA during the grace period. Of cause, she call me back and blame.. etc.. then explain how their firm works.. However that has nothing important for me. As a consumer, i have my purchasing rights.

I’m a mortgage broker, as i read your article, i believe your mortgage broker didn’t explain to you what is the benefit between MRTA & MLTA. In term of premium, yes, MLTA is much higher than MRTA, but of course there are lot of extra benefit if u take MLTA as your mortgage insurance.

MRTA
-coverage reducing
-if you want to refinance your property in future (maybe in 5-10 years time), you have to buy another one. By that time the premium will be much higher
-no yearly income tax exemption
-you have to pay your loan for 30 years (if your loan tenure is 30 years)
-you have to bear the interest payable for 30 years

MLTA
-coverage Level
-no need to buy another MLTA, because you can attach the insurance previously you bought with the new loan term
-yearly tax exemption
-reduce your loan tenure from 30 years to 25 years
-you only have to pay the interest payable for 25 years (if u calculate, there are lots of different amount of RM than 30 years interest payable

just my 2 cent

anyway its up to the customer to choose which is the best, as mortgage broker/advisor, we only can advice which is the best for your money in long term run.

TQ

It has been still a delay for this at this moment. Reason I giving him is the calculation from the insurer, how the plan work. I asked about the indept details for this insurance plan to hold the purchase and decision. Due to the location wise, he seems not worth to come over my place to settle those explaination and I keep on refuse to met him in town area….

I am a mortgage broker. I would also do the comparison between difference of insurance available and we never force client to buy. I am not sure what MI mentioned is what type of insurance, but we would offer life insurance which may help accumulating the cash surrender value with better protection than the MRTA premium in long term. It depends on the customer’s need, if they are investors, we would still offer them, but it’s up to them to decide.

The decision power still lies with customer, and with due diligence, some customer didn’t buy, should they over-insured or intend to sell it off within short period of time. Well I don’t force them to buy too, but some financial institutions would, should they find insecurity withthe borrower.

Kong