“Hey, buying MLTA/MRTA is not compulsory, so think carefully before you decide!” a friend of mine once said.
When you’re buying a house, advice will come from everywhere mostly are friends, relatives, even that colleague who “knows a bit about property.”
They’ll share what they did or what they heard was the right thing to do.
The most common advice given is:
"You can opt out of MRTA/MLTA, it's just a waste of money!"
But here’s the problem: they’re not the ones responsible for your loan.
Some people skip MLTA or MRTA because they want to save a bit of money each month. It feels harmless until something unexpected happens. If you pass away or become permanently disabled, those monthly savings won’t matter anymore.
What will matter is this:
Question: Who’s going to pay off the rest of your loan?
Your Loved Ones Could Be Left with a Debt
It’s easy to assume your spouse, parents, or children can “handle it.” But if they’re not financially capable, that debt becomes a heavy burden.
And in Malaysia, under inheritance law, it’s even more serious: when you pass away, all debts must be settled before your heirs can inherit your assets.
This is known as the transfer of immovable assets to your beneficiaries. It may sound simple, but it’s actually not. Did you know that if there aren’t enough funds to repay the debt or loan, the bank has the right to auction the property at a ‘lelong’ price? Even then, if the property is sold at a lower value, your beneficiaries must repay the outstanding balance along with miscellaneous fees.
Another option banks may suggest is refinancing the property under your beneficiaries, provided they are eligible for a new loan. But this comes with additional costs: legal fees, MOT charges, and other miscellaneous expenses.
What if that’s the only property your loved ones have to live in and be protected? Without it, they may have no choice but to be left without a roof over their heads.
And remember, those friends who told you “there’s no need for MRTA/MLTA”? They won’t be the ones handling all these issues.
The same applies to non-Malaysians who own property in Malaysia.
MLTA / MRTA Is Not the Only Option In Malaysia
Yes, MLTA and MRTA are optional. The law doesn’t force you to take them. But protecting your mortgage is still critical.
You can:
- Assign your existing life insurance policy to your mortgage.
- Get a term life plan that covers more than just your housing loan.
- Build a tailored plan with a licensed financial advisor.
The key is to find a solution that fits your needs, not just blindly follow what friends or family say.
Bottom line:
Your home is probably your biggest asset — and your biggest liability. Don’t gamble with it. Don’t leave your loved ones with a debt they can’t handle. And definitely don’t base such an important decision on casual advice from people who won’t be the ones paying your loan.
Think for yourself. Get professional advice. Protect your home the smart way.
Why Reviewing Your Coverage Matters
Checking and reviewing your life insurance is crucial. Reviewing your Letter of Offer from time to time is also a must.
We’ve met different types of customers:
- Paying overpriced premiums for minimal coverage.
- Paying premiums but having no idea what’s covered.
- Saying “I have MRTA/MLTA,” but it only covers accidental death for the first 5 years of the loan tenure.
- Owning more than 3 MLTA policies without knowing they can be consolidated into one (if health conditions allow).
- Having no coverage at all despite multiple mortgage loans with different banks.
- Afraid to seek advice, worried the advisor might sell something unnecessary.
So, what type of customer are you?
Friendly Reminder 🌟
Your home is probably your biggest asset and your biggest liability. Don’t gamble with it. Don’t leave your loved ones with a debt they can’t handle. And definitely don’t make such an important decision based on casual advice from people who won’t be paying your loan.
Think for yourself. Get professional advice. Protect your home the smart way.
Giving the right advice based on your needs is our responsibility. We don’t charge for reviewing your coverage, your previous Letter of Offer, or your MRTA/MLTA. We’ll advise accordingly. If it’s insufficient or needs a change, we’ll propose the most suitable plans for you. But remember, it’s always up to you to decide whether to engage with us. No pressure, no force.
👉 Drop us a form if you have any enquiries!
