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Sunday, January 25, 2009

Waiver from purchasing MRTA / MLTA (Sample Letter)

[Mortgager’s name]
Mortgage Loan Reference No. xx-xxxx-xxxx

Attention to: The Head of Department
The Mortgage Loan Department or Credit Department
Mortgagor Bank
[Postal Address]


Date of this letter:

To Whom It May Concern,


Reference:: Waiver from purchasing MRTA / MLTA


Thank you for taking the time to meet us / talk to us with regards to our application for home loan from your [Mortgagor Bank].

We do understand from our personal financial planning consultant that it is a general practice for most banks to suggest and subsequently offer the MRTA (Mortgage Reducing Term Assurance) or MLTA (Mortgage Level Term Assurance) to their borrowers in order to ensure that their liabilities are covered in the event of untimely death of these borrowers.

I must say, that it is indeed very proactive and very thoughtful of these financial institutions to have made such prior arrangements with their respective insurance company alliances on behalf of these borrowers. These efforts are indeed very commendable in view of the importance of the roles of insurance.

However, we have also done our part when we undertook the comprehensive Financial Need Analysis (FNA) with our personal financial planning consultant from AIA Co. Ltd. Through this wonderful and insightful analysis, we came to gain a broader perspective and understanding with regards to the various possible options and alternative solutions available to us.

We also came to learned that the benefits gained from using a Whole Life Insurance policy to cover for our liabilities far, far outweighs those gained from merely using the MRTA (Mortgage Reducing Term Assurance) or even the MLTA (Mortgage Level Term Assurance). We would not have made a well-informed decision if not for the insightful & comprehensive personal Financial Need Analysis (FNA).

Hence, we have herein decided that we are to use our newly purchased Whole Life Insurance policy in place of the MRTA (Mortgage Reducing Term Assurance) or even the MLTA (Mortgage Level Term Assurance) to cover for our liability should we decide to take a mortgage loan from your bank. We do also agree to assign our policies to your bank as collateral security for the mortgage loan that we are considering taking.

We are very anxious to develop a relationship with you and we would like to make it clear upfront that we would want to be given a waiver from purchasing the said MRTA or even the MLTA should we decide to take the mortgage loan from your bank.

We look forward to your favorable response at your earliest convenience.

Thank-you very much for your highest degree of attention.

Your faithfully,




………………………………………….

[Mortgager’s name]
NRIC No.:
Mortgage Loan Account No. xx-xxxx-xxxx
Contact:

1 comment:

  1. Hmm. After so many years of looking for home loan, only now I know that MRTA/MLTA premium paid burns everytime I refinance or sell house. If I knew about the disadvantages of MRTA/MLTA earlier I would have bought RM1mil worth of life insurance since 2009 to cover any of my property loan until end of my life.

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