Comments on: Bad experience with a mortgage broker

By: Buyers

Buyers — Mon, 04 Jul 2011 09:24:37 +0000

I have sold and purchased several properties through only one broker, who is my good friend during Uni year. For me, insurance is a MUST-have. It protects your investments, yourselves and loved ones. I will not buy a property if I can’t pay insurance premium. Because accident can happen to anyone anytime.

The question whether MRTA or MLTA, for me, depends on our monthly disposable income. If we have less, then MRTA will do. If we a lot extra, I will take MLTA. MLTA is only a better option than MRTA if I have enough disposable income to pay the premium. If not, MRTA is better.

By: Roy

Roy — Thu, 03 Feb 2011 03:40:26 +0000

This article clearly explains my experience with mortgage broker. You woulde be better of making a few trips to the banks. And yes they will make you pay through your nose for the MRTA. Unless you know the broker very well- stay away!

By: jayjay1961

jayjay1961 — Wed, 01 Sep 2010 07:47:52 +0000

Is there a standard formula to calculate MRTA? Thanks.

By: Kenny

Kenny — Wed, 28 Jul 2010 03:47:07 +0000

Hi,
I looking for Mortgage Broker,where do you based?
Please call back me @016-2602022
Thank you.

Regards,
Kenny
28 July,2010

By: Ong

Ong — Thu, 20 May 2010 02:28:51 +0000

I’m also facing the same problem like you, the broker quoted me the both MRTA & MLTA premium far higher than others. And also get informed by bank that the insurance is not compulsory in the loan package.

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.

By: WS Solutions

WS Solutions — Thu, 01 Oct 2009 01:58:42 +0000

Hi,

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.

By: HO

HO — Thu, 18 Jun 2009 01:33:43 +0000

yes, bank will state clearly in offer letter if MRTA if mandatory. Its mandatory for some banks while its not for the other.

By: espionage

espionage — Wed, 17 Jun 2009 10:11:55 +0000

Yes, I am facing this problem at this moment. Even though my broker is quiet a honest one. He didnt stated that the insurance is compulsory. However, he is very keen to approaching me to buy the MLTA which is even more expansive then MRTA. He is keen on both and happy to proceed it. But I am not so interested on both insurance and he will say something like, Eg, it is not good to have without insurance, dangerious if anything happen to you. I afraid after there is anything happen to you, I can responsible for this……

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….

By: Kong

Kong — Wed, 17 Jun 2009 07:42:26 +0000

Hi,

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

By: bla bla bla

bla bla bla — Tue, 16 Jun 2009 23:44:23 +0000

Thanks for highlighting this…