Advertisement

What happens to my outstanding mortgage (without insurance coverage) in the event of my death? Advertisement  
The deceased's survivor or next of kin can claim through the court the rights of the deceased's property. The person will have an option to either proceed to service the loan or redeem it.

However, most financial institutions make it compulsory to insure (MRTA [1]) against such an event.

Back to Housing Loan's Contents


References
  1. ^ Mortgage Reducing Term Assurance (MRTA) - A term insurance which reduces over the tenure of the loan. This form of insurance is used to provide cover for the outstanding loan amount, in the event of death or total permanent disability of the insured. MRTA is normally calculated to meet the outstanding loan amount.


Reprinted with permission from BankingInfo (A Consumer Education Programme by Bank Negara Malaysia)


Back to the top


Sponsored Links

Share this Page
submit to reddit


Notes
Tags   :     |    |    |    
Knowledge Base ID   :   1291
Last Review   :   May 22, 2014
Source   :   BankingInfo

Related Mortgages (Housing or Home Loans) Issues
» Mortgage Affordability: How much can I afford? How much of a house can I afford?
» What are the documents required for a housing loan application?
» Should I insure my house? What are the types of insurance I should consider when purchasing a house?
» What are the legal documents associated with a housing loan? What is a loan agreement?
» What are the things I should know when buying a house in Malaysia?
» What is a graduated payment scheme?
» Do I need a lawyer to get a home loan? Can I choose my own lawyer? Who pays for the legal fees?
» What are the rights and duties of a bank during the course of a housing loan?
» Is a valuation report required for my housing loan application? Why do I need a valuation? How much is the valuation fee?
» How long is the grace period for payment of my monthly home loan instalment?

Back to the top