How To Calculate MRTA


MRTA stands for mortgage reducing term assurance and is often referred to as mortgage life insurance. MRTA is an option provided to home buyers in Malaysia that allows them to protect themselves financially against possible death or permanent disability. Under the plan, anyone who dies or becomes permanently disabled before his mortgage is paid off will be relieved of his mortgage debt so long as he has made his MRTA payments.

  • Gather the necessary data on your mortgage. You will need to know the amount of the loan in Malaysian currency (ringgits), the loan's tenure, the home buyer's age and the home buyer's cover ratio.

  • Go to the MRTA calculator link in the Resources section.

  • Enter the information you gathered into the empty text boxes found on the web page.

  • Click the orange "get premium" button. If you are between 18 and 60 years old and in decent health, it is not unreasonable to expect the total cost of MRTA to be less than 1 percent of the total cost of the mortgage. For example, if you have a mortgage worth RM100,000 assured over 10 years, the total cost of MRTA would be around RM700 for a borrower who is 35 years old. Assuming that this loan's tenure is 30 years, the MRTA premium would be adding less than RM5 to the monthly installment.

Tips & Warnings

  • This calculation tool is meant to provide an estimate only and is not an official bank statement.


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