If you’re taking a home loan to buy a property, chances are: you’ll be required to pay for Mortgage Reducing Term Assurance, or MRTA, by the bank as part of your loan arrangement.

And if you’re one the tens of thousands of first-time home buyers out there who are wondering why you need to fork out precious Ringgit to pay for this home loan insurance, allow us to shed some light on MRTA and what it means to your home loan deal.

What Is MRTA?

MRTA is an insurance policy that provides financial protection for home loan borrowers and their families. Specifically, MRTA helps settle outstanding home loan amounts in the event of death or total disablement of the borrowers.

Why Would You Need MRTA?

MRTA is essentially a protection mechanism for all people with home loans, and especially for households with sole bread earners.

Generally, in the event of untimely death or disability of a home loan borrower (significantly if he or she is the main income earner), the greatest problem facing surviving households is their ability to pay off the remaining home loan. In many instances, the surviving family members may even need to sell off the property at less-than-competitive price just to pay off the outstanding amount.

By signing up for MRTA, surviving family members will not be left with such burden because MRTA covers part or all of the unpaid portion of a home loan.

How Does One Apply for MRTA?

In Malaysia, home loan applicants do not need to go out of their way to find an MRTA provider because MRTA is usually incorporated as part of the home loan application process. Commonly, you’ll only be required to pay a single MRTA premium. You will not need to pay a premium again throughout the entire duration of the policy.

Important Considerations for MRTA

Like any other insurance policies, MRTA has a specific insured amount as well as policy duration. Bear in mind that in the event of death or permanent disability, MRTA would pay off ONLY the amount that is covered, within the time, as dictated by the policy. It does NOT pay for everything that the insured owes to the bank.

Due to the above reason, home loan applicants are generally advised to purchase MRTA based on your specific requirements (instead of just going for the cheapest policies available). For sole bread earners, buying maximum coverage is especially recommended despite a heftier premium, because your families are more at risk should anything happen to you. For households with multiple income earners, you may consider opting for a policy with lower coverage.

This article comes courtesy of www.imoney.my which compares between the various loans, savings and insurance schemes available in Malaysia.

Tree Sparina, the phase 1 of Ideal Vision Park in by Ideal Property in Bayan Lepas, Penang. This project is strategically located along Jalan Tun Dr. Awang adopting ‘slow-city’ concept that promotes healthy living, environmentally friendly practices, preserving traditional trades and cuisine and, generally, an improved quality of life for residents.

Property Project : Tree Sparina
Location : Ideal Vision Park, Bayan Lepas, Penang
Property Type : Mixed Development
Land Tenure : Freehold
Built-up Area: 1,130 sq. ft. onwards
Developer : Ideal Property
Contact No.: +604-645 6888
Indicative Price : RM500 psf. onwards

GEORGE TOWN: The Penang Municipal Council (MPPP) has launched an investigation into the alleged illegal hill clearing in Bukit Gambier.

The council has found traces of tree cutting and landfilling activities.

It said an order was issued to stop work immediately after a site visit by MPPP with the state Land and Minerals Office as well as the state District and Land Office on April 24.

“Based on the council’s record, no permission was given for work to proceed here,” the council said.

The council issued the order on April 25 to the two landowners of the site to stop operations immediately.

“Through the notice, the council ordered the landowners to take mitigation steps among others to cover up the affected hill slopes with tarpaulin or geotextile as a precaution to prevent landslide and erosion.”

“This is also to ensure that the land and slopes are stabilised.”

Legal action was also taken on the landowners for clearing the land without permission.

“MPPP will be monitoring the area from time to time.”

“The council would also like to remind all landowners to adhere to the rules and do not undertake any land activities without written approval from the MPPP.”

Source: StarProperty.my

Engineering Department deputy director A. Rajendran

In a bid to alleviate traffic woes on Penang island, five road upgrading projects have been put in place by the Penang Municipal Council.

Its Engineering Department deputy director A. Rajendran said that out of the five projects, two had already been completed last year.

“The completed projects involved the upgrading of Jalan Air Itam, Jalan Gottlieb and a part of Jalan Bagan Jermal and Jalan Mount Erskine,” said Rajendran.

“Both the projects are expected to be completed by this year,” Rajendran told a press conference in Komtar yesterday.

Two other projects involve the Udini roundabout and the intersection of Jalan Masjid Negri-Jalan Air Itam-Jalan Scotland.

Source: StarProperty.my

The Loft @ Southbay City, second phase of Southbay City by Mah Sing Group in Batu Maung, Penang. This development comprises two 30-storey towers with only 78 units in each tower. Each floor has only 3 units and served by two dedicated passenger lifts.

Other features:

• Unique & stylishly design façade with international appeal.
• 3 design types with built-up area ranging from 1,325sf to 1,615sf
• Card access security system at the lift lobby
• High ceilings & large windows translate into airy, radiant interiors.
• All units’ living, dinning, master and second bedroom have sea view. Type A and B with sea facing balcony.
• Maximization of sea and second bridges view plus natural greenery at lower level.
• Approximately 2.5-acre leisure and recreational facilities decks at Level 4, 15 and garden pool level.
• Uniquely design swimming pool with natural setting.
• Level four each units with its own private garden.
• Sky lounge & sky gym connect by sky bridge at level 15 with infinite sea view

Contact : 04-2913128