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
» What is the difference between Monthly Rest and Daily Rest?
» If the developer abandons the housing project, am I still required to service my interest or instalment payments?
» What is the difference between conventional and Islamic home financing?
» What is the margin of finance (MOF) for housing loans in Malaysia?
» How does a financial institution or bank assess my housing loan repayment capacity?
» What is the maximum loan term (loan tenure) for a housing loan in Malaysia?
» How long is the grace period for payment of my monthly home loan instalment?
» Should I insure my house? What are the types of insurance I should consider when purchasing a house?
» What are the common housing loan packages offered by banks or financial institutions in Malaysia?
» What is a graduated payment scheme?

Back to the top