• IP addresses are NOT logged in this forum so there's no point asking. Please note that this forum is full of homophobes, racists, lunatics, schizophrenics & absolute nut jobs with a smattering of geniuses, Chinese chauvinists, Moderate Muslims and last but not least a couple of "know-it-alls" constantly sprouting their dubious wisdom. If you believe that content generated by unsavory characters might cause you offense PLEASE LEAVE NOW! Sammyboy Admin and Staff are not responsible for your hurt feelings should you choose to read any of the content here.

    The OTHER forum is HERE so please stop asking.

Is it compulsory to pay for MRTA (mortgage insurance) when loaning from bank?

sgcount

Alfrescian
Loyal
I was told recently it is compulsory to pay for the MRTA mortgage insurance when we take a loan from the Malaysian banks.

Does any of you know if there is any way not to pay this? Or are there alternatives as not everyone needs the insurance.

Thanks.
 

Ash007

Alfrescian
Loyal
Not sure about Malaysian banks, however, if your deposit is over 20% you don't need to pay a mortgage insurance. Please note that mortgage insurance only benefits the banks. That in the event that you default on your loan they get cash back for it. It only benefit the bank that are giving you the loan.

I was told recently it is compulsory to pay for the MRTA mortgage insurance when we take a loan from the Malaysian banks.

Does any of you know if there is any way not to pay this? Or are there alternatives as not everyone needs the insurance.

Thanks.
 

Frodo

Alfrescian
Loyal
I was told recently it is compulsory to pay for the MRTA mortgage insurance when we take a loan from the Malaysian banks.

Does any of you know if there is any way not to pay this? Or are there alternatives as not everyone needs the insurance.

Thanks.

Depends on bank. For Standard Chartered it is not compulsory. For RHB it is.
 

Funniman

Alfrescian
Loyal
Depends on bank. For Standard Chartered it is not compulsory. For RHB it is.

MRTA is more to protect the bank loan in case the borrower die. It is to protect the backside of the bank.
It doesn't matter how much the margin is.
 

Frodo

Alfrescian
Loyal
MRTA is more to protect the bank loan in case the borrower die. It is to protect the backside of the bank.
It doesn't matter how much the margin is.

Actually if you already have term loan or life insurance it should suffice because you get death payout. So long as it is sufficient to cover loan at the least.
 

RedsYNWA

Alfrescian
Loyal
Depends on bank. For Standard Chartered it is not compulsory. For RHB it is.

Yes, Std Chart not compulsory but they may charge 0.05% higher. That's what they told us when we said we don't want MRTA but eventually, they still gave us 4.2% instead of 4.25%.
 

Rocker

Alfrescian
Loyal
Yes, Std Chart not compulsory but they may charge 0.05% higher. That's what they told us when we said we don't want MRTA but eventually, they still gave us 4.2% instead of 4.25%.

I didn't get from the bank directly, I bought from local insurance enought to cover the loan as I don't wish to stress my family if anything happened to me. :smile:
 

sgcount

Alfrescian
Loyal
Thanks all for the reply.

I thought the MRTA is to protect the family should home buyer can no longer pay the mortgage. Cos for the bank, if that unfortunate situation take place, they just take back the property and sell it?

I've just been told again by the bank it is compulsory regardless of anything. Sighz. So it's not consistent.

Wah, Stand Chart so good? UOB is charging 4.3% with MRTA!
 

kopikong99

Alfrescian
Loyal
Thanks all for the reply.

I thought the MRTA is to protect the family should home buyer can no longer pay the mortgage. Cos for the bank, if that unfortunate situation take place, they just take back the property and sell it?

I've just been told again by the bank it is compulsory regardless of anything. Sighz. So it's not consistent.

Wah, Stand Chart so good? UOB is charging 4.3% with MRTA!

From my experience, only Maybank insists it is compulsory while UOB, OCBC and CIMB is optional.

I remember the premium is high and given the choice, I would not want this MRTA.
 
Last edited:

Legolad

Alfrescian
Loyal
From my experience, only Maybank insists it is compulsory while UOB, OCBC and CIMB is optional.

I remember the premium is high and given the choice, I would not want this MRTA.

Even Maybank is negotiable. I didn't take up MRTT but was required to deposit RM50k in fixed deposit for the duration of the loan. The MRTT premium is dependent on age and medical checks and can be very high.
 

Frodo

Alfrescian
Loyal
Thanks all for the reply.

I thought the MRTA is to protect the family should home buyer can no longer pay the mortgage. Cos for the bank, if that unfortunate situation take place, they just take back the property and sell it?

I've just been told again by the bank it is compulsory regardless of anything. Sighz. So it's not consistent.

Wah, Stand Chart so good? UOB is charging 4.3% with MRTA!

If you like I will be happy to recommend my Stanchart banker to you.
 

malpaso

Alfrescian
Loyal
From my experience, only Maybank insists it is compulsory while UOB, OCBC and CIMB is optional.

I remember the premium is high and given the choice, I would not want this MRTA.

public bank told me mrta is a must.. the rest (ocbc, ambank, ) no need. MRTA (mortgage reducing term assurance) is paid out in the event of death.
the MRTA quoted to me in malaysia was ex. so i bumped up my singapore cover instead.
 
Last edited:

sgcount

Alfrescian
Loyal
I have a feeling the bank (and/or insurance company) is just trying to suck money from us. :(

I'm getting some conflicting news. Now I'm also told for UOB it is compulsory. Last time, Public bank was not. But malpaso you were just told it is?

Frodo, thanks, but only 2 selected banks on my list. The other banks won't finance. Another weird thing I don't understand about Malaysian bank loan.

Their rules seem to keep changing. :(
 

malpaso

Alfrescian
Loyal
I have a feeling the bank (and/or insurance company) is just trying to suck money from us. :(

I'm getting some conflicting news. Now I'm also told for UOB it is compulsory. Last time, Public bank was not. But malpaso you were just told it is?

Frodo, thanks, but only 2 selected banks on my list. The other banks won't finance. Another weird thing I don't understand about Malaysian bank loan.

Their rules seem to keep changing. :(

yes, i was definitely told by pubic bank i need an MRTA. maybe i looked very poor to the banker, was wearing shorts and slippers. however, that was in june 2013, not recently.

and everyone is trying to suck money from us. amazed you didn't notice that?? :smile: :smile:
 
Last edited:

potter

Alfrescian
Loyal
pbank offered me MRTA/Mxx. i said "不要..不要..".
but no change in any figure after the amendments.

btw, u didn't show yr 4 rings car to them..?:biggrin:
 
Last edited:

sgcount

Alfrescian
Loyal
yes, i was definitely told by pubic bank i need an MRTA. maybe i looked very poor to the banker, was wearing shorts and slippers. however, that was in june 2013, not recently.

and everyone is trying to suck money from us. amazed you didn't notice that?? :smile: :smile:

I was referring in particular to the MRTA case. Cos it should be an individual's choice whether they take it or not. If they can't pay it, the bank takes back property to sell. I don't see how the bank can ever be disadvantaged if one does not have MRTA.

MRTA is good but only for those who need it. To make it compulsory doesn't make sense except for making $ for themselves.
 

Frodo

Alfrescian
Loyal
I was referring in particular to the MRTA case. Cos it should be an individual's choice whether they take it or not. If they can't pay it, the bank takes back property to sell. I don't see how the bank can ever be disadvantaged if one does not have MRTA.

MRTA is good but only for those who need it. To make it compulsory doesn't make sense except for making $ for themselves.

Indeed it is a money making ruse for the bank in my view. The bank really doesn't need it since they can take possession of the house in the event you cannot pay up, regardless of whether you are dead or alive. You buy and factor that into your loan you end up paying interest on that over the loan tenure. How come only 2 banks on your list? You already tried StanChart?
 

sgcount

Alfrescian
Loyal
Indeed it is a money making ruse for the bank in my view. The bank really doesn't need it since they can take possession of the house in the event you cannot pay up, regardless of whether you are dead or alive. You buy and factor that into your loan you end up paying interest on that over the loan tenure. How come only 2 banks on your list? You already tried StanChart?

Yeah man... if they can take advantage of us, they will! Previously, I was told there's a RM500 loan processing fee for foreigners. Oh man... this they also wanna take. Now this MRTA thingy comes up. I was shocked when told it's compulsory.

I'm also not sure why not all banks can loan. It seems this is the way they Malaysian banks work. Before taking any loan, the bank will ask what property it is, the name and location. I don't understand this also.

Sometimes, people tell me, remember this is Malaysia! Things work differently. That's what they mean "Malaysia boleh"???
 

Frodo

Alfrescian
Loyal
Yeah man... if they can take advantage of us, they will! Previously, I was told there's a RM500 loan processing fee for foreigners. Oh man... this they also wanna take. Now this MRTA thingy comes up. I was shocked when told it's compulsory.

I'm also not sure why not all banks can loan. It seems this is the way they Malaysian banks work. Before taking any loan, the bank will ask what property it is, the name and location. I don't understand this also.

Sometimes, people tell me, remember this is Malaysia! Things work differently. That's what they mean "Malaysia boleh"???

From what I understand, the banker earns commission if he manages to get you to buy MRTA, so maybe that's why he say compulsory. It is compulsory for his own pay! But the good and honest banker will say not compulsory and loses his commission on that. But he wins my trust.
 

FHBH12

Alfrescian
Loyal
I think MRTA is good for buyers as it gives protection in case of unfortunate accident. Singapore's insurance is much more costly for properties.
 
Top