Housing Loans and MRTA
Here’s a great FAQ on housing loan - something everyone should read before buying a house. It’s taken from the HBA website (take some time to explore the site, lots of useful information there).
Two important sections we’d like to highlight are the ‘Fees and Charges’ and MRTA.
| Type | Rate |
| Professional Legal Fees | |
| Sale & Purchase Agreement | 1.0% for the first RM100,000 0.5% for the next RM4,900,000 |
| Stamp Duties | |
| Loan Agreement Transfer of Title (for completed properties only) |
0.5% of the loan amount 1% for the first RM100,000 2% for the next RM400,000 |
| Disbursement Fees | |
| Include fees for registration of charge, land search and bankruptcy search |
These fees vary by state, land office and type of property. For instance, in Selangor and Wilayah Persekutuan, the fees could range from RM300 to RM700 |
| Processing Fees One time fee charged by the financial institution for loan processing |
Rate (RM) 50 for range from 25,001 to 30,000 100 for range from 30,001 t0 100,000 200 for range from 100,001 above |
And here’s a little something on MRTA, also from the same site:
The Mortgage Life Assurance or MRTA
This type of policy provides for full settlement of the outstanding balance of the housing loan with the financial institution, in the event of total permanent disability or death of the borrower. Premiums can usually be included in the loan amount, and the repayment period of the premium is usually spread over the loan tenure. The premium is only incurred once. There are no monthly or yearly premiums to be paid. In the event of early termination of housing loan, you will generally have the option to request for a refund of the premium for the balance of the unexpired period or to continue the insurance coverage.
Financial institutions have their own panel of insurers and most of them can arrange insurance on your behalf with the annual premium charged to your loan account.
Sometimes you can replace the MRTA with a Life Insurance policy, and assign the beneficiary to the loan.
For the stamp duty, you mean 2% for the *next* RM400,000? And it’s 3% for the amounts above RM500,000.
Comment by totoro — September 16, 2005 @ 2:41 am
totoro, thanks for the heads up, edited it…
Comment by Administrator — September 16, 2005 @ 2:51 am
Mortgage
Comment by Mortgage Broker — October 12, 2005 @ 1:01 am