Friday, November 5, 2010

There are no best mortgage insurance.

Why would I say so?

There are no such thing as best because it depends on your unique financial position. Ahmad may choose MRTA and Ali may be better off with MLTA even though they bought a house at the same time.

Suppose you are single and have no dependent, but engage with a pretty potential-life-partner, would you consider taking MRTA when you purchase a house now? What determines the decision?

Most of the time a borrower taking up MLTA/MRTA is when bank force them. However, it may not be the bank policy but the banker's policy. It may be with good intention of the banker to introduce the borrower the concept of mortgage protection (aka. debt cancellation program) but the borrower shall have better understanding whether MLTA or MRTA or no protection or reduced protection or reduced period if he/she equips with knowledge in personal finance and financial planning.

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