MRTA and MLTA, which one to choose?

Basically there are two types of mortgage insurance available in the market, Mortgage Reducing Term Assurance(MRTA) and Mortgage Level Term Assurance(MLTA).


MLTA is a slight variation from MRTA and offers an alternative for a borrower who is looking for a life insurance which offers protection plus savings and in some policies returns on the premium.


In a nutshell MLTA offer level/consistent protection, allow you to buy/sell property using the same MLTA protection & offer cash back and interest comparing to MRTA.


Also please note that most of the times, it is not compulsory to buy MRTA from the bank that you get the housing loan with, but it is recommended to do so.


The table below shows the different between MRTA and MLTA



MRTA Graph


MLTA Graph

MLTA Graph


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