MRTA - take it up through bank or by yourself?

in 2006, when i bought my first property which is only a low cost apartment in taman anggerik perdana, i applied for RHB islamic fixed rate home financing. The financing margin was 95% + MRTA. At that time, RHB Islamic make it compulsory for the customer to buy MRTA with the loan and get it through them. I am not sure about current RHB Islamic policy. For a 40k loan, the MRTA fee is rm1031. Bank said that they will apply for Takaful Ikhlas mortagage plan.

recently, when I decide to apply for Alrajhi Home Loan, i learned that alrajhi gives freedom to their cutomers whether to buy MRTA or not. I do not want to leave a financial burden to my family if something happens to me, so I stll decide to buy MRTA for the loan.

The alrajhi mortgage advisor, ija said that I can take up the MRTA plan policy thru bank ( as what I have done before for the low-cost apartment) or buy on my own from any takaful agency outside there. It must be a takaful plan because alrajhi offers only Islamic financing. If I take up the plan from bank, Ija said that it will be from Takaful Ikhlas and the premium fee is lower than getting it outside. For 162k loan at BFR – 1.7% rate for 30 years, the MRTA fee is rm4451.64.

Since own research is still the best information source, I managed to visit a Takaful Ikhlas agency in Putrajaya. For the same variables of the loan, takaful ikhlas quoted me rm4,968.67.. extra rm517.

Thus, it is proved that taking up MRTA through bank is cheaper than u buy on our own.

Another information I learnt is, if we take up MRTA through bank, bank will keep the policy. If you take it outside, sendiri simpan la.. hehehe