MRTT / MRTA / Takaful Under LPPSA
MRTT/MRTA protects the LPPSA financing balance and may be financed into the loan. The real premium is a quotation, not a public formula — here is the plain-English version.
Quick answer
MRTT (Mortgage Reducing Term Takaful) and MRTA (Mortgage Reducing Term Assurance) settle the reducing LPPSA financing balance if the borrower dies or suffers total permanent disability. Under LPPSA this protection is generally compulsory and is often financed into the total financing amount. There is no public, fixed premium formula — the actual premium depends on age, gender, smoking/health/underwriting, financing amount, tenure, and the takaful/insurance panel. Treat any percentage table as a budgeting estimate only and verify the real premium with LPPSA / its panel / an LPPSA agent.
Key takeaways
- MRTT/MRTA covers the reducing financing balance on death or TPD.
- It is generally compulsory under LPPSA and may be financed into the total amount.
- There is no public fixed premium formula — it is a quotation.
- If financed, the monthly instalment is calculated on the higher total financing amount.
What MRTT/MRTA does
It is reducing-term cover: the protected amount falls as the financing balance falls. If the borrower dies or suffers total permanent disability, it settles the outstanding balance so the family keeps the home.
Why there is no public price
The premium is set by the takaful/insurance panel's actuarial table and depends on age, gender, smoking/health/underwriting, financing amount, tenure and provider. Any percentage table you see online is a budgeting estimate only.
Rough planning formula (educational only, not official): Estimated premium = financing amount × estimated protection rate × term factor.
Checklist
- Confirm whether MRTT/MRTA is required for your LPPSA financing.
- Decide whether to finance the premium or pay it separately.
- Get the actual premium quotation from LPPSA / its panel / an LPPSA agent.
- Check how a financed premium changes your monthly deduction.
Watch out for
- Do not treat any percentage estimate as the real premium — it is a quotation.
- Do not declare smoking/health status falsely — it can void a future claim.
Frequently asked questions
Is MRTT/MRTA compulsory for LPPSA?
It is generally compulsory and often financed into the total amount, but confirm the current requirement and your quotation with LPPSA / its panel takaful.
How much is the MRTT/MRTA premium?
There is no public fixed price. It depends on age, gender, smoking/health/underwriting, financing amount, tenure and provider. Use any table only as a budgeting estimate and verify the actual premium with LPPSA / panel / agent.
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Read guideImportant
This content is for general education only. It is not legal, financial, banking, valuation, tax, investment, or property advice. Always verify with the relevant bank, lawyer, valuer, agent, developer, auctioneer, land office, LPPSA, LHDN, or authority before making decisions.
Last reviewed: 2026 edition · Rules, rates and fees change over time. Always confirm the latest figures with the relevant authority before you act.