MRTA vs MLTA vs MRTT vs MLTT in Malaysia: What Homebuyers Should Know

Introduction

When buying a home in Malaysia, banks often recommend a mortgage insurance plan to protect your loan and your loved ones. The four common options are MRTA, MLTA, MRTT, and MLTT. Each protects your housing loan but works differently in terms of cost, flexibility, and coverage.

Understanding these options is especially useful for homebuyers considering long-term township projects such as Iringan Bayu in Seremban, NARA at Shorea Park in Puchong, Hana Hills in Melawati, or Harbour View Residence in Penang, where financial planning and family security go hand in hand.

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1. What is MRTA (Mortgage Reducing Term Assurance)?

• A one-time premium insurance tied directly to your housing loan.
• Coverage amount reduces as you repay the loan.
• Usually cheaper, but non-transferable if you refinance or sell the property.

‍Example: If you buy a RM500,000 home at Iringan Bayu, MRTA will cover the full loan at first. As your balance reduces, so does the coverage.

2. What is MLTA (Mortgage Level Term Assurance)?

• A life insurance plan with fixed coverage throughout the loan period.
• Premiums are higher, paid monthly or annually.
• Can include a cash value or savings component.
• Transferable if you refinance or move to another home.

Example: If you purchase a RM500,000 home at NARA at Shorea Park, MLTA maintains the same coverage until the end, even if you refinance or upgrade later.

3. What is MRTT (Mortgage Reducing Term Takaful)?

• The Shariah-compliant version of MRTA.
• Based on takaful principles of mutual protection.
• One-time premium, with coverage amount reducing over time.
• Popular among buyers who plan to stay in the same home long-term.

4. What is MLTT (Mortgage Level Term Takaful)?

• The Shariah-compliant version of MLTA.
• Provides fixed coverage throughout the loan period.
• Premiums are higher but Shariah-compliant and flexible.
• Transferable if you refinance or upgrade homes.

5. Quick Comparison Table

To make things easier, here’s a side-by-side look at the four mortgage insurance options in Malaysia. This table highlights only the key points — premium type, coverage, flexibility, and overall cost — so you can quickly compare and decide which plan may suit your housing loan best.

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6. Which is Best for You?

• MRTA / MRTT → Affordable and suitable if you plan to stay in the same home for many years.
• MLTA / MLTT → Flexible and ideal if you expect to refinance, upgrade, or want additional savings benefits.

‍Tip for OSK Buyers:
For long-term township living such as Iringan Bayu (Seremban) or Harbour View Residence (Penang), MRTA/MRTT may suit first-time buyers looking for affordability. For lifestyle-focused projects like Hana Hills (Melawati), MLTA/MLTT can offer more flexibility and financial protection.

7. FAQs

Q: Is mortgage insurance compulsory in Malaysia?
No, but most banks strongly recommend MRTA/MLTA or MRTT/MLTT to protect both borrower and lender.

Q: Which is cheaper — MRTA or MLTA?
MRTA/MRTT is cheaper upfront; MLTA/MLTT costs more but offers flexibility and may include savings value.

Q: Can I transfer my MRTA to a new property?
No — MRTA/MRTT is tied to the loan. But MLTA/MLTT can follow you if you refinance or upgrade.

Q: Do OSK Property projects require mortgage insurance?
It’s not compulsory, but many OSK homebuyers choose MRTA/MRTT for affordability or MLTA/MLTT for flexibility, depending on the project and lifestyle needs.

Conclusion

Choosing between MRTA, MLTA, MRTT, and MLTT depends on your budget, lifestyle, and long-term housing plans. MRTA/MRTT are affordable for those staying put, while MLTA/MLTT provide flexibility and savings for buyers who may refinance or upgrade in the future.

If you’re planning your next home, consider how mortgage insurance fits into your financial journey. OSK Property’s developments — from family-friendly Iringan Bayu in Seremban to GreenRE-certified NARA at Shorea Park in Puchong — are designed for peace of mind, pairing quality homes with smarter financial planning.

👉 Explore more at OSK Property’s official site

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References

The information in this article is compiled from publicly available sources for general understanding. For further reading, refer to:

1. PropertyGuru – The Complete Guide to MRTA, MLTA, MRTT & MLTT in Malaysia
2. iProperty – MRTA vs MLTA: Which Mortgage Insurance is Better?
3. PEPS – Understanding MLTA and MRTA: Essential Mortgage Protection in Malaysia
4. iProperty – MRTT vs MLTT: Which Takaful Insurance is Better?

All sources accessed in 2025. OSK Property provides this information for general educational purposes only.